PRESS RELEASE

September 2008

Panel Builders Market Reports Growth in 2008

Findings from MTW Research on the UK Panel Builders Market indicate that 50% of companies reported a rise in sales in the last 12 months to September 2008, despite the dramatic downturn in construction activity over the same period.  A further 16% of panel builders indicated steady sales trends over the last 12 months, further illustrating a continued reasonable level of demand for specialist skills within the UK Building Industry. 

MTW’s new database highlights the substantial and continued level of fragmentation in 2008, coupled with a large number of independent companies active in the industry.  The database, which covers more than 90% of the UK Panel Builders market, also finds that around 40% of the industry is comprised of companies with less than 5 employees, highlighting the need for effective and accurate marketing tools in order for electrical product and component manufacturers to successfully grow sales to this sector. 

Whilst the UK Panel Builders market is set to experience a more difficult trading environment in the next 18-24 months from the decline in construction, a number of key end use sectors should continue to support the market in the short to medium term, according to MTW Research.  The utilities and energy sectors remain important markets for panel builders alongside public sector construction, all of which should underpin the market during the current economic downturn. 

MTW’s analysis also finds that more than 80% of the Panel Builders market is currently rated as ‘below average risk’, in terms of credit worthiness, reflecting the relative optimism in the industry at present despite the worsening macro-economic environment.  The Panel Builders industry overall remains in apparent good health and ready to weather more difficult trading conditions in the coming months. 

The new for 2008 database and mailing list is supplied as multi-use with full mailing and telemarketing details alongside senior purchasing information, employee bands, company and office type.  The listing is unique to MTW and represents a comprehensive marketing tool for increasing sales to the control panel building industry.  The database is available to purchase now for GBP 350 by calling 08456 524324, with further information & free samples available by clicking here

PRESS RELEASE

September 2008

Electrical Wholesale Market Switches Focus

MTW Research have found that UK Electrical Wholesalers are now increasingly re-focusing their attention on achieving turnover as volume demand slows in mid-late 2008, and away from the recent trend of ‘cherry-picking’ more profitable projects. 

The new report, based on sales returns of more than 90% of the UK electrical wholesaler industry, found that whilst the market rose by just over 1% in 2007 profitability increased by almost 8%, in part reflecting the adoption by wholesalers of the phrase ‘turnover is vanity, profit is sanity’.  However, in 2008 indications are that this trend is reversing as housebuilding and commercial construction activity slows.  The contraction in construction and RMI activity is resulting in weaker volume demand for electrical products and accessories giving rise to less opportunity for wholesalers to ‘cream off’ the more profitable supply contracts. 

The implications for electrical product manufacturers and distributors of these findings are clear, with this trend compounding growing pricing pressure in the market in the short term.  Report publishers MTW Research also point to the likelihood of a relatively fast paced rise in borrowing in the industry, with debt rising to around 40% of sales by 2009, further exacerbating the issue of price sensitivity in terms of purchasing by the wholesalers.  These, and other issues suggest a more complex trading environment for electrical product manufacturers in the short term and highlight the need for a clear and coherent strategy with which to weather the coming financial difficulties. 

MTW go on to develop possible future scenarios for the UK electrical wholesale market, with optimism returning to the market by 2010.  However, the short term future is not necessarily as bleak as some fear, with assets continuing to rise in 2008 throughout the industry, though variations in individual performance mean that manufacturers must increasingly target and focus on those companies who continue to perform well at present. 

The report illustrates the performance of key individual electrical wholesalers for the last 4 years, identifying the most lucrative targets for manufacturers to target in this increasingly competitive trading environment.  Turnover estimates are provided for every company, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify those companies most likely to grow in 2008/9.  In addition, the report also includes full mailing address details and senior decision maker contact details for the electrical wholesalers, providing relevant sales leads for manufacturers.  

The report, available immediately, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here.

PRESS RELEASE

2008

Independent Electrical Wholesalers Maintain 50% Share

MTW Research have published a brand new 2008 database and mailing list encompassing more than 90% of UK Electrical Wholesalers and Distributors, emphasising that this channel remains a vital and significant route to market for the UK Electrical Products and Components Industry. 

MTW, a specialist independent building research company, has found that whilst consolidation in many sectors in the UK Electrical Products market continues, 50% of all Electrical Wholesalers and Distributors have a turnover of less than £1 million.  The database supports findings that reflect the ongoing importance of targeting smaller independent wholesalers as well as the regional and multi-nationals.  As such, suppliers are likely to continue to experience positive volume growth through this route to market, though the importance of effective marketing strategies and relevant mailing lists will become increasingly important in this competitive channel.

The database, which includes turnover estimates for each company, highlights that there is a clear market distinction and growing polarisation in terms of sales in this channel, with over 1200 electrical wholesalers and distributors achieving a turnover of less than £1 million.  MTW’s new database highlights the need for accurate and detailed mailing lists in this sector in order that manufacturers and distributors may effectively increase sales in a cost effective manner through this route to market. 

New for 2008, MTW’s multi-use, no restrictions database includes full company name, address, telephone number and turnover estimates for more than 2,500 Electrical Wholesalers and Distributors, representing more than 90% of this channel’s sales in the Electrical Products market.  With more than 2,300 senior decision maker/head of purchasing contact name records, the database provides instant, quality sales leads and is invaluable for companies who are seeking to grow sales to the Electrical Wholesale market.   The database is available to purchase now for £450.