Panel builder market is set to grow in 2011
23 March 2011
A new market research survey on the UK panel builder market from MTW Research has found that demand patterns and market trends are shifting in 2011, prompting greater optimism in the market. The 1st edition, 200 page research report suggests that this market is likely to show stronger growth in the second half of 2011, stimulated by a range of key strengths and opportunities.
One such market opportunity is highlighted as the growing demand for replacement applications such as the installation of variable speed, rather than fixed speed drives which offer more efficient operation and control.
Based on quantitative sales information from the industry, the report discusses a wide range of issues impacting both the panel builders and electrical components market. One notable market influence identified is the change in direction for many sectors of the UK manufacturing industry – a key customer market for panel builders. MTW point to “…a gradual shift toward more focused ‘niche production’ and away from ‘mass manufacturing’ which is changing the dynamics of the panel builder market in 2011 as well as stimulating new market opportunities such as greater efficiency requirements.”
The report goes on to provide market sizes and specification criteria for the key components used in panels such as drives, cables, power, enclosures, HMIs and so on, as well as identifying key trends in each of the product sectors. For example, the uninterruptible power supply (UPS) market is continuing to benefit from the growing demand for greater efficiency and integration of systems, with unit size, power consumption, reliability and total cost of ownership identified as being key purchase issues for panel builders as well as their customers. Opportunities identified in the UPS market include a reference to the development of kinetic storage which offers enhanced efficiency and should support longer term growth in this sector.
Four years of financials for over 120 companies is provided for each panel builder, alongside turnover and profit estimates, which enable MTW to rank the companies by sales, profitability and a number of other indicators in the report. The analysis of this data found that around 19% of UK panel builders are currently considered to have a ‘low’ credit rating, 21% of which are considered to be at immediate risk of failure. Clearly, whilst there is currently more optimism in the market, trading conditions are still difficult for many panel builders and associated component manufacturers and distributors.
The research also includes analysis of end use sectors for panels, and MTW has provided a market share for the key customer groups in the report, as well as a mix for private and public sector applications. The report identifies a number of fairly significant changes in demand from several end-user sectors, which are likely in the medium to longer term, and highlights the need for panel builders to re-focus their marketing in order to maintain growth in an increasingly dynamic market place.
As the panel building industry looks forward to improved performance in the second half of 2011, MTW’s report suggests that the threat of a ‘double-dip’ recession is diminishing rapidly and reasonable growth is now the most likely prospect for the remainder of this year and on into 2012.
MTW Research’s report is available to purchase here, price £565. Alternatively, call 08456 524324.
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