| AM31034 |
| AMA RESEARCH Market Report : UK Panel Builders Market : June 2004 |
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Introduction and Overview
| AMA Research have published the sixth edition of the 'Panel Builders Market - UK 2004" report. Incorporating original input and primary research, the report represents an up to date and informed review of the market and is excellent value for money. |
| Key issues covered in the report are:- |
| REVIEW OF UK MARKET SIZE AND TRENDS |
| PRODUCT USAGE - Analysis of the range of products used by panel builders. |
| ANALYSIS OF SUPPLY STRUCTURE - Key Suppliers, component suppliers and distribution, etc. |
| REVIEW OF APPLICATIONS OF PANELS - Industrial, water industry, power generation, oil gas and marine, general commercial, transport distribution and aviation etc. |
| The Panel Builders market is complex and fragmented in terms of end-use applications. Trends in the market are influenced by many issues, ranging from the level of electricity consumption and manufacturing to general construction activity levels. These issues are assessed alongside their implications for the UK panel builders and component markets. |
| The report reviews development within the industry, with emphasis on both QUALITATIVE AND QUANTITATIVE market assessment - both essential requirements to good marketing planning. Recent trends, key influencing factors and forecasts of future developments are assessed. |
| Of particular interest:- |
| Review of positive and negative influences impacting on the UK panel building market. |
| Niche applications for panels. |
| Trends to distributed power. |
| Review of generator capacity (up to 750 kVA) and panels. |
| Key areas of coverage include:- |
| PANEL BUILDING MARKET |
| Market size and trends from 1996, market influences, forecasts to 2007. |
| Market structure - number of UK panel builders, mix of companies with panel building operations, changing mix of panel builders. |
| Major UK Panel Builders - turnover, range of activities, etc. |
| Factors influencing growth, market structure, products sectors etc. |
| End use applications - industrial, water industry, power generation, oil, gas and marine, general commercial, transport distribution and aviation, etc. |
| PANEL BUILDERS OUTPUT |
| Mix of Control Panel Types - process control panels, motor control centres, power distribution panels, building control systems and power, safety & others. |
| Analysis of end-user sectors - percentage of panel builders supplying into each sector, panel types used. |
| Analysis of end use applications. |
| PRODUCT USAGE |
| Sales into panel builders by major product area - enclosures, control gear, circuit protection and switchgear, power direction products and automation products. |
| Review of main products within each area. |
| Changing product usage - growth in electronic products at the expense of electro-mechanical. |
| Major manufacturers and suppliers. |
| SOURCE OF SUPPLY |
| Key Sources of Supply - Electrical Wholesalers, Specialists, Direct from Manufacturers, Electronic Component Distributors, Manufactured In-House, etc. |
| Factors influencing choice of supplier. |
| Review of major sources of supply - General Electrical Wholesalers, Specialist Wholesalers/Distributors, Electronic Component Distributors, Direct Distribution. |
| FUTURE PROSPECTS |
| Future developments, changing industry structure, implications for suppliers and distributors. |
| Economic influences, growth prospects etc. |
| DEALER DATABASE - Standard Version or Optional Extras |
| BASIC OPTION (Included with report as standard):- |
| Multi-use database of 700+ major UK office furniture dealers - company names, addresses & telephone no's supplied as standard. |
| ADDITIONAL OPTIONS (included in Platinum Package) |
| Buyer / general manager contact names, e-mail addresses, |
| Number of branches / warehouses / employees. |
| Indicates level of activity in new / used / stationery / equipment |
| Supplied on CD-Rom or by e-mail, list purchase not rental, no limitations on usage. |
Executive Summary
| Since our last report in 2002, the UK panel building market has continued to exhibit a slow, continual, underlying decline in real terms when judged by the yardstick of 1995 constant prices. |
| The UK panel building market was estimated to be worth some £552m in 2003 at current selling prices, and has been adversely affected by depressed demand in the manufacturing sector and quasi-recessionary tendencies in a number of other industry sectors. The panel building market could have gone into a more pronounced decline were it not for high levels of spending in construction and infrastructure projects, much of it publicly funded. |
| Other factors impacting both positively and negatively on the market are:- |
| High levels of consumer spending encouraging retail business and shopping centres and associated power, heating, lighting applications. |
| Long-term underlying growth in the demand for electricity and 'clean' secure power. |
| Miniaturisation of electronic or electro-mechanical systems leading to reduction in panel size and assembly times, with a corresponding reduction in panel contract and market values. |
| On-going trends to distributed power, creating demand for additional, but smaller panels. |
| Increased demand for back-up power supplies with UPS protection to support critical needs in a number of sectors and IT systems. |
| Keen price competition tending to erode profit margins and market value as panel builders compete for business. |
| A selection of specialist niche sectors displaying more positive trends include: |
| · Growth in detection and protection systems, |
| · Growth in e-trade in general, creating a demand for courier operations and a market for sorting and handling systems. |
| It is forecast that the net effect of these factors together with some early signs of a levelling out or even recovery in manufacturing, will cumulatively contribute to a flattening of the panel market. It should be emphasised that certain sectors are demonstrating more positive characteristics than others and for individual panel builders, much will depend on what sector they serve. |
| Companies |
| The structure of the panel building market is fragmented and it is estimated that there are about 600 companies engaged in panel building, ranging from large multi-national panel builders to companies with small ancillary panel building operations. |
| Panel builders may be classified according to a number of broad categories including companies whose primary activity is panel assembly, companies who make control systems, and companies who have subsidiary panel building operations including component manufacturers, electrical contractors, electrical wholesalers, and large specialist engineering firms and building contractors. |
| In general terms, there is also a growing demand for fully integrated panel solutions. This may tend to provide a competitive advantage for the larger panel building companies. Often these larger companies are component manufacturers who have grown their share of the panel building market. By using internally manufactured components, they are able to offer a number of advantages in terms of costs and timing. |
| There is a general trend towards more intelligent software controlled panels, which provide additional functionality, improved reliability and smaller dimensioned components and enclosures than traditional panels. This tendency will threaten small companies which lack the necessary skills to provide this technology. |
| Key panel builders and systems manufacturers include: AF Switchgear, Anord, Blackburn Starling, Danfoss, General Panel Systems, ICW, Main Systems, Switchgear & Instrumentation, and Saftronics. |
| As mentioned earlier, a number of component manufacturers such as ABB, Eaton, Klockner Möller, Rockwell Automation (Allen-Bradley), Schneider Electric, and Siemens, also have substantial panel building operations. In addition, electrical contractors assemble panels in connection with installation projects, major companies including NG Bailey, Crown House Engineering, ABB William Steward, James Scott and Balfour Kilpatrick, as well as Lorne Stewart, Haden Young and Lee Beesley. |
| Applications |
| The panels under our definition are assembled for a wide range of applications throughout general industry (manufacturing), construction and commercial buildings, transportation and the utilities. The market is dominated by panels for power distribution, with process control panels and motor control centres also representing major sectors. Other panel types include advanced building controls, as well as the specialist area of protection, safety/emergency shut down systems for process plants to protect personnel, equipment and the environment. |
| There continues to be general growth in electricity consumption across all sectors. This is a positive market factor in the assessment of the panel building market, with implications for power generation and power distribution to replace older equipment or add capacity. In addition, there is increasing demand for clean, uninterruptible power and CHP cooling, heating and power solutions, and systems in support of power from renewable energy sources. These will tend to require additional control panels adding value to this market. |
| The demand for building management and control systems (security, fire protection, environmental control, IT infrastructure, etc.) is growing, stimulated by environmental issues, energy efficiency, and increased efficiencies through reduced manning levels. |
| Manufacturing industry has been in recession for many years suppressing growth in the panel building industry's largest market. In particular, the long-term decline in heavy industry has produced a shift away from high voltage applications. However there is some evidence of a slowdown in this decline, and even some growth and, if the latter is realised, this would have a significant positive impact on panel building. |
| There has been good investment growth in infrastructure, including the water, power generation and railway industries. This has probably peaked, though there may be new opportunities in the water industry from April 2005 when the next Asset Management Plan (AMP4) becomes effective. In the longer term, there will be considerable activity in airport expansion. |
| Buying Process |
| Increasing complexity and in-built intelligence within new component parts for panels means that the designer is having more say in the selection decisions. Price continues to be a major factor influencing brand choice, although familiarity with the product and selection on the basis of low risk are becoming more influential factors. |
| The choice of a source of supply is mainly influenced by product availability and price, with certain products only available through 'appointed distributors'. Electrical wholesalers/distributors are the most commonly used source of supply, although the specialist nature of components used by panel builders means that these are often available direct from the manufacturer or through specialist distributors. |
| Customers are becoming more influential in component selection, particularly in the regulated industries. |
| Many of the larger panel building companies manufacture their own components and would naturally use these in their products. |
| Component Trends |
| Panel builders use a wide variety of components, including the categories of enclosures, circuit protection and switchgear, control gear, automation products and power distribution products. |
| The market for these products within the Panel Building sector, excluding products manufactured by panel builders for their own usage, is estimated at just over £350m in 2003. |
| The use of components has been largely influenced by the development of the overall panel market, particularly the following factors: |
| The market for components used for panel building will be substantially flat in line with the panels themselves. |
| With increasing miniaturisation and embedded intelligence within PC base systems and the increased use of HMI devices, the overall parts count in panels will diminish, although the value of these new components will increase. |
| Shift from hard-wired and electro-mechanical technology to solid state software controller electronic devices. |
| Reduction in component size and heat dissipation, enabling smaller enclosures. |
| Reductions in component builders' margins due to highly competitive market conditions impacting on panel builders' margins. |
| Declining usage of more expensive high-voltage products. |
| Keen price competition amongst component and enclosure manufacturers. |
| Continuing trend to the usage of rail mounted products and associated adapters/clip-on devices, etc. |
List of Contents
| 1 | INTRODUCTION |
| 2 | SUMMARY |
| 2.1 | OVERVIEW |
| 2.2 | COMPANIES |
| 2.3 | APPLICATIONS |
| 2.4 | BUYING PROCESS |
| 2.5 | COMPONENT TRENDS |
| 3 | ECONOMIC ENVIRONMENT |
| 3.1 | GDP |
| 3.2 | INFLATION & INTEREST RATES |
| 3.3 | UNEMPLOYMENT |
| 3.4 | HOUSING & CONSTRUCTION |
| 3.5 | STERLING |
| 3.6 | CONCLUSIONS |
| 4 | THE UK PANEL BUILDING MARKET |
| 4.1 | DEFINITION |
| 4.2 | MARKET SIZE |
| 4.3 | MARKET STRUCTURE |
| 4.4 | COMPANIES |
| 4.5 | STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS |
| 4.5.1 | Strengths |
| 4.5.2 | Weaknesses |
| 4.5.3 | Opportunities |
| 4.5.4 | Threats |
| 4.6 | KEY MARKET INFLUENCES |
| 4.6.1 | Construction |
| 4.6.2 | Manufacturing and Industry |
| 4.6.3 | Overall Trends In the Usage Of Electricity |
| 5 | PANEL BUILDERS' OUTPUT AND END USE APPLICATIONS |
| 5.1 | MIX OF SALES |
| 5.1.1 | End Uses |
| 5.1.2 | Mix Of Panel Builders' Activities |
| 5.2 | PANEL BUILDERS' CUSTOMERS |
| 5.3 | END USE APPLICATIONS |
| 5.3.1 | Mix |
| 5.3.2 | Industrial |
| 5.3.3 | Power |
| 5.3.4 | Transport, Distribution, etc. |
| 5.3.5 | Water Industry |
| 5.3.6 | Oil, Gas, and Marine |
| 5.3.7 | General Construction |
| 6 | SOURCES OF COMPONENT SUPPLY |
| 6.1 | INTRODUCTION |
| 6.2 | SOURCE OF SUPPLY |
| 6.2.1 | Supply Sources Used |
| 6.2.2 | Factors Influencing Choice of Supplier |
| 6.3 | ELECTRICAL WHOLESALERS |
| 6.3.1 | Product Range |
| 6.3.2 | Major Electrical Wholesalers |
| 6.4 | SPECIALIST WHOLESALERS AND DISTRIBUTORS |
| 6.5 | ELECTRONIC COMPONENT DISTRIBUTORS |
| 6.6 | DIRECT DISTRIBUTION |
| 6.7 | E-TRADING |
| 7 | RENEWABLE ENERGY MARKET |
| 7.1 | OVERVIEW |
| 7.1.1 | The Renewables Obligation |
| 7.1.2 | Carbon Emission and Greenhouse Gases |
| 7.2 | CURRENT ENERGY CONSUMPTION LEVELS AND FUTURE DEMAND |
| 7.3 | RENEWABLE SOURCES OF ENERGY |
| 7.3.1 | Types of Renewable Energy - Wind Power |
| 7.3.2 | Combined Heat and Power Schemes (CHP) |
| 7.3.3 | Fuel Cells |
| 7.3.4 | Biofuels and Biomass |
| 7.3.5 | Hydro Power |
| 7.3.6 | Photovoltaics |
| 7.3.7 | Nuclear |
| 7.4 | FUTURE OF RENEWABLES |
| 8 | COMPONENT USAGE IN PANEL BUILDERS |
| 8.1 | OVERALL COMPONENT USAGE |
| 8.2 | ENCLOSURES |
| 8.3 | CIRCUIT PROTECTION AND DISCONNECTORS |
| 8.3.1 | Automatic Circuit Breakers |
| 8.3.2 | Fuses and Fuseholders |
| 8.4 | AUTOMATION PRODUCTS |
| 8.4.1 | PCs and PLC's (Programmable Logic Controllers) |
| 8.4.2 | Human-Machine Interface Equipment |
| 8.4.3 | Drives |
| 8.4.4 | Motor Starters |
| 8.5 | CONTROL GEAR |
| 8.6 | POWER DISTRIBUTION PRODUCTS |
| 8.7 | OTHER PRODUCTS |
| 8.8 | MANUFACTURERS/SUPPLIERS |
| 8.8.1 | Main Manufacturers |
| 8.8.2 | Enclosures |
| 8.8.3 | Circuit Protection Devices |
| 8.8.4 | Automation And Control Products |
| 9 | FUTURE PROSPECTS |
Tables and Charts
| CHART 1 | INTEREST RATES AND INFLATION (RPI) FROM 1990-2005 |
| TABLE 2 | EXCHANGE RATES 1997-2004 - DOLLARS, EUROS TO THE POUND STERLING, SPOT RATES |
| TABLE 3 | THE UK PANEL BUILDING MARKET 1996-2008 £M PANEL BUILDERS SELLING PRICES |
| CHART 4 | THE UK PANEL BUILDERS' MARKET 1995-2008 £M/AT 1995 CONSTANT SELLING PRICES |
| CHART 5 | MIX OF PANEL BUILDING MARKET BY COMPANY'S PRIMARY ACTIVITY |
| TABLE 6 | CONTRACTORS' OUTPUT - (NON HOUSING) - CURRENT PRICES (£ M) 1995-2004 |
| TABLE 7 | NEW ORDERS OBTAINED BY CONTRACTORS 1994-2003 CURRENT PRICES (£M) (NON-HOUSING) |
| CHART 8 | NEW ORDERS OBTAINED BY CONTRACTORS 1994-2003 CURRENT PRICES (£M) |
| TABLE 9 | LEVEL OF UK MANUFACTURING OUTPUT 1998-2003 (2000 = 100) |
| CHART 10 | MANUFACTURING OUTPUT AS PERCENTAGE OF GDP FOR 7 NATIONS |
| TABLE 11 | LEVEL OF UK MECHANICAL & EQUIPMENT ORDERS 1998-2003 |
| TABLE 12 | SALES BY THE PUBLIC ELECTRICITY SUPPLY SYSTEMS 1994-2003 |
| CHART 13 | UK PANEL BUILDING MARKET - MIX OF PANEL TYPE |
| CHART 14 | ASSESSMENT OF PANELS BY MARKET SECTOR |
| TABLE 15 | MIX OF END USE APPLICATIONS FOR PANEL BUILDERS IN UK MARKET 2004 |
| CHART 16 | STRATEGIC RAIL AUTHORITY BUSINESS PLAN SPENDING |
| TABLE 17 | MAJOR SOURCES OF SUPPLY |
| TABLE 18 | KEY FACTORS CONSIDERED TO INFLUENCE CHOICE OF SUPPLIER (IN ORDER OF IMPORTANCE) |
| TABLE 19 | PRODUCT SALES THROUGH ELECTRICAL WHOLESALERS 2002 (£M) |
| CHART 20 | ELECTRICAL WHOLESALE MARKET SHARES 2002 BY VALUE |
| TABLE 21 | CURRENT AND FORECAST SHARES OF POWER GENERATION IN THE UK 2002 - 2010 (%) |
| TABLE 22 | CURRENT COMMISSIONED CAPACITY FROM RENEWABLE SOURCES (MW) 2002 - 2003 |
| CHART 23 | EU COUNTRIES' SHARE OF RENEWABLE ENERGY 2002 |
| TABLE 24 | ROUND TWO OFFSHORE WIND PROJECTS 2003 |
| TABLE 25 | CHP INSTALLATIONS BY SIZE RANGE 2002 |
| CHART 26 | COMPONENT USAGE WITHIN THE PANEL BUILDING SECTOR £M 1995-2008 |
| CHART 27 | MIX OF COMPONENTS USED BY PANEL BUILDERS BY VALUE £M |
| CHART 28 | MIX OF ENCLOSURES USED BY PANEL BUILDERS |
Text © 2004 AMA Research
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Last updated by Amanda Porteous 2004
