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Total UK Pump Manufacturers'
Output
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The UK Pump market has remained
relatively stable for a number of years with growth just below
inflationary levels at around 1-2% per annum since the late 1990s.
This low rate of growth is likely to continue to characterise the
market in the medium term future, though ongoing product development
and innovations should sustain some forward momentum in the market
in value terms. The UK Market for Pumps is very closely linked to
the overall state of the economy and in particular to general
conditions in the oil, gas, water and sewage, power generation,
marine, industrial manufacturing and process sectors.
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Given the broad base of
end use application sectors for this market, there are a wide and varied
range of macro and micro influences which impact on the performance of
this industry.
The UK pump market is
currently estimated to be worth just under £700 million at manufacturers
selling prices (MSP) in 2007. Since 2001, indications are that the market
has experienced relatively low levels of growth in current price value
terms, at around 3%. Medium to longer term forecasts for the market are
slightly more positive than recent historical market estimates. However,
short term performance is likely to be impacted by the worsening economic
situation, with growth at 1-2% forecast for the short to medium term,
reflecting a number of positive market drivers driving volume demand.
Given these rising price pressures, the need to add value
through the provision of products which offer greater benefits to the end
user has become increasingly important. The market remains dominated by
the centrifugal product sector at around 60%, though indications are that
the positive displacement sector has experienced some share growth in
recent years, not least due to the trends identified above. Volume demand
continues to be driven by manufacturing and process industries, though the
manufacturing and process sector share is under pressure primarily due to
declining levels of UK manufacturing, arising from the migration of
production to overseas countries including China, India and Eastern Europe
for example. Conversely, indications are that the water and sewage
treatment sector has gained some share in recent years due to rising
levels of legislation relating to health and safety etc.
The distribution of
pumps remains highly fragmented with a large number of channels supplying
a broad range of key end use sectors Manufacturing and industrial process
sectors are estimated to account for a significant share of the market in
2007, reflecting around 40% of the total market value, with the second
largest sector is related to water and sewage treatment, which in 2007 is
currently estimated at around 18% of the market.
Medium term prospects
are likely to be more positive. Key drivers include the increased level of
infrastructure investment proposed by the government, the greater levels
of building required for the Olympics and a greater level of confidence
returning to the industrial and manufacturing sector as the degree of
price competition from Far East manufacturing abates somewhat. Greater
levels of investment in the utility sector is also likely to provide some
support for the sector, as Britain seeks to pump in more gas and oil from
overseas for example.
AMA Research’s “Pumps
Market UK 2008-2012” report is available in hard copy or electronic
format for £625 and can be ordered online at
www.amaresearch.co.uk
or by calling 0871 3103450.
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