SUMMARY OF REPORT CONTENTS

The UK panel builders market is currently estimated to be worth £500 million at manufacturers selling prices (MSP) in 2010. Market decline over the last three years has been significant, though difficult to estimate, reflecting the variable performance of different product groups and the wide range of end use markets – including industrial, construction, oil and gas, marine, power generation, and water. In addition, sectors of the UK panel building industry were sustained by significant levels of exports.

Current forecasts indicate that the UK panel builders market is likely to continue to grow very slowly through to 2015, reaching a value of around £520 million. Key factors underpinning low level, long term market growth include health and safety, environmental and energy efficiency legislation, also rising long term electricity consumption and more positive conditions in the oil and gas sector.

Key application areas include industrial and manufacturing, water and sewage, power generation, oil, gas and marine, construction, and transport.

World-wide investment in the oil and gas industries is likely to stimulate investment in capital projects with positive implications for the UK panel building industry. Life extension projects for the ageing power generation asset base will tend to provide some additional opportunities for panel builders. In addition, decommissioning projects will provide low level long term motivation for the panel building industry, while opportunities are also likely to arise in the carbon capture and storage sector.

The automation sector including panels and components will receive some additional long term motivation from energy efficiency trends and the requirement to reduce operating costs and improve levels of competitiveness.

In the extreme long term, the nuclear power station new build sector is likely to provide some additional opportunities for panels, with a reported ten sites identified in England and Wales, though recent adverse publicity may impact on this build programme.

Niche growth sectors are represented by homeland security, with a reported 10% per annum market growth in Western countries including protection and detection systems, also railway electrification and the expansion of co-location centres, driven by factors including trends to credit card transactions.

While the opportunities in the non-domestic renewable sector should not be over-stated, it is likely that some long term opportunities are likely to arise, including switchgear and power distribution panels.

Adverse influences bearing on the UK panel builders market include, the forecast decline in non-domestic construction in 2011-2012 reflecting capital spending cuts in the public sector in particular, though this should partially be offset by a more buoyant infrastructure sector and gradual recovery in private commercial markets.