In
2009, the electrical wholesalers’ market was estimated to be
worth £2.8 billion. This represents a decline of 8% on
2008. The electrical wholesalers’ market has experienced
difficult trading conditions in recent years, reflecting the
poor economy. From 2011, the market is expected to return to
average growth resulting in a market value in 2014 forecast
at over £3.2 billion. This will be driven by the improving
economy but limited by the maturity of the market overall.
Factors supporting the market in spite of
poor trading conditions include high levels of government
expenditure, growth in specialist markets and evolving legislation
leading to a requirement for higher specification products.
Factors negatively affecting market growth
include low levels of construction, low raw material prices,
increased price competition, growing competition from competitive
channels and longer product life reducing the replacement market.
The leading electrical wholesalers in the UK are
Rexel, Edmundson Electrical, City Electrical Factors,
and Electric Center. These four companies account
for around three quarters of the electrical wholesalers market.
Electrical wholesalers remain market leaders
in distribution of electrical products and are particularly strong
in core product areas such as electrical accessories and test
equipment. It is unlikely, in the short to medium term, that they
will relinquish their hold on this market.
Cables, circuit protection & switch gear and
lighting remain the largest product sectors within the electrical
wholesalers market, accounting for over half of the electrical
wholesalers’ market. Electrical wholesalers are widening
product portfolios to provide growth as consolidation in the
market makes beneficial acquisitions more difficult. Whilst this
offers potential for wide expansion, it will put the wholesalers
in more direct competition with other channels.
Emphasis of product development currently
focuses on energy efficiency, motivating demand for more efficient
products and those which help to monitor and reduce energy usage.
These products tend to have a higher initial cost, although they
will provide longer term savings in energy usage and often have
longer life cycles requiring less replacement.
