AMA Research are pleased to announce the publication of the 2nd Edition of AMA
Research's report "Electrical Contractors Market Report - UK 2014-2018
Analysis", which quantifies the existing market for electrical contracting
services and provides a thorough review of the structure and performance of
the market in 2013 and beyond.
This unique report provides both a quantitative and qualitative analysis of
the electrical contracting sector and represents an invaluable guide to the
overall market for sales and marketing professionals involved in the
construction, electrical or specialist contracting industries. Focusing on
market size and trends, important market influences, key end use sectors and
future prospects, the report is comprehensive, informative and will facilitate
operational and strategic decision-making processes.
Key Issues analysed include:
- Market Structure
- Market Size and Key Trends
- Future Prospects
- Regional Breakdown
- Key Factors for Change - Product Development etc.
- Legislation & Regulations
- Energy Efficiency Requirements
- Corporate Activity, Profitability Levels
Electrical contracting output remained flat in 2012, but estimates show that
2013 saw a much improved market performance, as construction activity started
to pick up and business confidence began to return. Key drivers for growth
include construction and housing market growth, growing demand for energy
efficient products and services, legislative changes and government
initiatives. Factors likely to restrict growth in the medium term include a
trend towards consolidation, the substantial fall in profit margin seen in
recent years and a trend towards the increasing use of prefabricated
components and 'plug and play' systems.
The current outlook for the market over the medium term is moderately
positive, with electrical contracting output expected to show higher levels of
growth from 2014. The underlying demand for housing will underpin growth in
the longer term, with various schemes aimed at introducing more renewable
energy sources, also having an impact.
Areas of particular interest include:
- Thorough review of the structure of the sector.
- Regional analysis incorporating estimated regional market size and leading
- The impact of energy efficient products and renewable energy sources.
- Key legislation and regulations affecting the market.
- Analysis of leading electrical contractor firms and recent mergers &
- Profitability analysis.
Amey UK, Arthur McKay, Balfour Beatty Construction Services, Boulting Group,
Bouygues Energie & Services, Briggs and Forrester, British Gas Social Housing
Ltd, Carillion, CBES, Cofeley, Crown House Technologies, Derry Building
Services, Dodd Group, EIC Ltd, Emcor Group (UK), FES Ltd, Gratte Brothers, GSH
Group, Halsall Electrical, Haydon Mechanical & Electrical, Imtech Technical
Services (ITS), Integral UK, Interserve, Lorne Stewart, Michael Lonsdale
Group, MITIE plc, NG Bailey, Nomenca, Norland Managed Services, Phoenix
Electrical, Quartzelec, Shepherd Engineering Services (SES), Skanska
Rashleigh, Weatherfoil, Space Engineering Services, SPIE Matthew Hall, SSE
Contracting, T Clarke, UK Power Network Services, VINCI Facilities.
Key areas of coverage in the report include:
ELECTRICAL CONTRACTING MARKET
- Definition and Market Overview - distinction between M&E and
- Market Performance - market size in value terms, growth levels
- Key Trends - consolidation, energy efficiency, integration and
outsourcing. Key factors for change and market development.
- Future Prospects - market size and growth projections to 2018,
where the market is headed and why.
- Market Mix - share of newbuild versus RMI.
KEY MARKET TRENDS AND INFLUENCES
- Review of past, current and future non-domestic construction
activity in the UK.
- Analysis of current and forecast housing market activity - value,
starts and completions.
- Information about legislation and standards affecting the market.
- Outline of carbon reduction and green energy requirements - green
- Analysis of the sustainability sector, in particular the solar PV
and solar thermal markets.
- Review of current and future product development opportunities.
- Market Size - number of businesses, number of employees.
- Sector Profile - breakdown by turnover, number of employees, age of
business and revenue.
- Geographical Profile - analysis by UK region.
- Service Review - review of services offered by electrical
contractors - standard services, additional services and growing sectors.
- Specialist Contractors - share of specialists, i.e. fire &
security, lighting, audio-visual etc.
- Profitability Analysis - average profit margin development between
2007 and 2013.
- Overview and regional shares for electrical contracting and
construction output, by UK region.
- Estimated electrical contracting output by value, compared with
construction output, in each region, covering 2008-2012 with forecasts to 2016.
- Key influences and future prospects for each region.
- Profile in each region - number of employees in electrical trades,
- Leading regional players - brief description and turnover figures.
- Market Share - relative size of leading companies involved in the
electrical contracting market.
- Contractor Profiles - extensive section providing company overview,
recent acquisitions, turnover and profit figures for companies within the
£250m+, £100m+ and £50m+ turnover brackets.
- Corporate Activity - review of major mergers & acquisitions,
- Procurement Review - covering sub-contracting, contract
procurement, materials purchasing and distribution channels such as electrical
wholesalers, and of key trends in relation to this.
SUMMARY OF REPORT CONTENTS
The electrical contractors market was estimated to be valued at around
£18.2bn in 2013, having seen moderate levels of growth since 2011.
While electrical contracting is thought to have been less affected than some
other areas within the construction industry during the recession, the
electrical contractor market declined in 2009/10. In 2011, increasing raw
material prices provided a boost to the market in terms of value. However,
this was offset to a great extent by weak demand in the private sector and the
government's spending cuts taking effect, and the growth rate seen in 2011
could not be sustained, leading to a flat market performance in 2012.
Current estimates are more positive, and point to a return to growth from 2013
onwards. Business confidence has been higher during the year and there have
been some positive signs that the economy could finally be recovering from the
Competition remains fierce among contractors, with reports of businesses
continuing to submit tenders at, or below, cost price in order to secure work
or retain clients. Profit margins, which were already under pressure, have
declined further. Consolidation activity amongst suppliers continues to be
high within the market. This has led to a number of major players increasing
in size over the past few years. The growth in strategic acquisitions is also
in response to the growing focus on integrated services within the sector,
with contractors widening the range of services offered.
A key area of growth in recent years has been installations aimed at improving
energy efficiency and reducing carbon emissions, driven by increasingly
stringent legislation and regulations around this, but also given impetus by
the long-term cost savings that can be made by installing such systems, driven
by increasing fuel costs.
Future prospects for the sector are moderately positive, with the electrical
contracting market expected to show growth of around 3% per annum over the
next few years. However, this depends largely on the performance of the
non-domestic and domestic construction sectors. The housing sector is one of
the key sectors likely to underpin growth within the electrical contracting
market over the next few years, as demand for new housing is constantly
Growth in the future is also likely to be motivated by legislation around
carbon reduction, and renewable energy in particular. Solar panel installation
currently represents a fast growing sub-sector of the electrical contracting
market. A shift to LED lighting should have an impact on the market and data
centres also remain a potential source of growth. Forecasts indicate that the
market may reach £20.6bn by the end of 2018.
Table of Contents
- 1.1 INTRODUCTION
- 1.2 SOURCES OF INFORMATION
2 EXECUTIVE SUMMARY & FUTURE PROSPECTS
- 2.1 SUMMARY
- 2.2 FUTURE PROSPECTS
3 ECONOMIC ENVIRONMENT
- 3.1 GDP
- 3.2 INFLATION & INTEREST RATES
- 3.3 UNEMPLOYMENT
- 3.4 HOUSEHOLD CONSUMPTION
- 3.5 HOUSING & CONSTRUCTION
- 3.6 STERLING
- 3.7 POPULATION PROFILE
- 3.8 CONCLUSIONS
4 THE UK ELECTRICAL CONTRACTING MARKET
- 4.1 MARKET DEFINITION
- 4.2 MARKET SIZE & TRENDS
- 4.2.1 Current Situation
- 4.2.2 Future Prospects
- 4.3 MARKET MIX
- 4.4 KEY MARKET INFLUENCES
- 4.4.1 Construction Output
- 4.4.2 Legislation and Standards
- 4.4.3 Carbon Reduction and Green Energy Requirements
- 4.4.4 Product Development
5 REGIONAL ANALYSIS - ELECTRICAL CONTRACTORS
- 5.1 OVERVIEW
- 5.2 THE NORTH OF ENGLAND
- 5.3 THE MIDLANDS
- 5.4 EAST OF ENGLAND
- 5.5 LONDON & THE SOUTH EAST
- 5.6 THE SOUTH WEST
- 5.7 WALES
- 5.8 SCOTLAND
- 5.9 NORTHERN IRELAND
6 MARKET STRUCTURE
- 6.1 OVERVIEW
- 6.2 COMPANY SIZE
- 6.3 GEOGRAPHICAL COVERAGE
- 6.4 SERVICE OFFERING
- 6.5 KEY TRENDS
- 6.6 PROFITABILITY
7 CONTRACTOR REVIEW
- 7.1 OVERVIEW
- 7.2 LEADING ELECTRICAL CONTRACTING COMPANIES
- 7.3 ELECTRICAL CONTRACTOR PROFILES
- 7.3.1 Electrical Contractors - £250m+ Estimated Electrical Turnover
- 7.3.2 Electrical Contractors - £100m+ Estimated Electrical Turnover
- 7.3.3 Electrical Contractors - £50m+ Estimated Electrical Turnover
- 7.3.4 Electrical Contractors -<£50m Estimated Electrical
- 7.4 PROCUREMENT
TABLES AND CHARTS
- CHART 1 UK ELECTRICAL CONTRACTOR MARKET 2008 TO 2018 - BY VALUE (£BN)
- TABLE 2 GDP DATA - 2010-2013 - KEY CONSTITUENT ELEMENTS
- CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 1994-2018
- CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 1995-2018
- TABLE 5 EXCHANGE RATE FLUCTUATIONS 2008-2014 - STERLING TO THE DOLLAR, AND
THE EURO, SPOT RATES
- TABLE 6 UK ELECTRICAL CONTRACTING MARKET 2008 TO 2018 - BY VALUE (£M)
- CHART 7 MIX BY TYPE OF PROJECT (NEW BUILD, RMI, REFURBISHMENT) - % BY
- CHART 8 CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI - CURRENT
PRICES (£BN) 2008 -2015
- CHART 9 CONSTRUCTION NEW WORK BY END-USE SECTOR BY VALUE 2013
- CHART 10 DOMESTIC CONSTRUCTION OUTPUT 2008 TO 2018 - BY VALUE (£M AT
- CHART 11 DOMESTIC CONSTRUCTION STARTS & COMPLETIONS AND FORECASTS 2008 TO
2018 BY VOLUME
- CHART 12 UK ELECTRICAL CONTRACTING REGIONAL SHARES BY VALUE - 2012
- CHART 13 CONSTRUCTION OUTPUT - REGIONAL SHARES BY VALUE - 2012
- CHART 14 PUBLIC/PRIVATE CONSTRUCTION OUTPUT 2008 - 2013 - NORTH OF ENGLAND
- BY CONSTRUCTION TYPE (£M)
- TABLE 15 NORTH OF ENGLAND - ELECTRICAL CONTRACTING MARKET SIZE AND
EMPLOYMENT - BY VALUE 2008-2016 (£M)
- CHART 16 PUBLIC AND PRIVATE CONSTRUCTION OUTPUT 2008 - 2013 IN THE
MIDLANDS - BY CONSTRUCTION TYPE (£M)
- TABLE 17 MIDLANDS - ELECTRICAL CONTRACTING MARKET SIZE AND EMPLOYMENT - BY
VALUE 2008-2016 (£M)
- CHART 18 PUBLIC AND PRIVATE CONSTRUCTION OUTPUT 2008 - 2013 IN THE EAST OF
ENGLAND - BY CONSTRUCTION TYPE (£M)
- TABLE 19 EAST OF ENGLAND - ELECTRICAL CONTRACTING MARKET SIZE AND
EMPLOYMENT - BY VALUE 2008-2016 (£M)
- CHART 20 PUBLIC AND PRIVATE CONSTRUCTION OUTPUT 2008 - 2013 IN LONDON &
THE SOUTH EAST - BY CONSTRUCTION TYPE (£M)
- TABLE 21 LONDON & THE SOUTH EAST - ELECTRICAL CONTRACTING MARKET SIZE AND
EMPLOYMENT - BY VALUE 2008-2016 (£M)
- CHART 22 PUBLIC AND PRIVATE CONSTRUCTION OUTPUT 2008 - 2013 IN THE SOUTH
WEST OF ENGLAND - BY CONSTRUCTION TYPE (£M)
- TABLE 23 SOUTH WEST - ELECTRICAL CONTRACTING MARKET SIZE AND EMPLOYMENT -
BY VALUE 2008-2016 (£M)
- CHART 24 PUBLIC AND PRIVATE CONSTRUCTION OUTPUT 2008 - 2013 IN WALES - BY
CONSTRUCTION TYPE (£M)
- TABLE 25 WALES - ELECTRICAL CONTRACTING MARKET SIZE AND EMPLOYMENT - BY
VALUE 2008-2012 (£M)
- CHART 26 PUBLIC AND PRIVATE CONSTRUCTION OUTPUT 2008 - 2013 IN SCOTLAND -
BY CONSTRUCTION TYPE (£M)
- TABLE 27 SCOTLAND - ELECTRICAL CONTRACTING MARKET SIZE AND EMPLOYMENT - BY
VALUE 2008-2016 (£M)
- TABLE 28 NORTHERN IRELAND - ELECTRICAL CONTRACTING MARKET SIZE AND
EMPLOYMENT - BY VALUE 2008-2016 (£M)
- CHART 29 NUMBER OF VAT REGISTERED FIRMS INVOLVED IN ELECTRICAL
INSTALLATION WORK AND AVERAGE NUMBER OF EMPLOYEES - 2008-2013
- CHART 30 ELECTRICAL INSTALLATION FIRMS BY AGE OF BUSINESS - 2013
- TABLE 31 ENTERPRISES INVOLVED IN ELECTRICAL INSTALLATION REG. FOR VAT BY
EMPLOYMENT SIZE BAND 2013
- TABLE 32 ENTERPRISES INVOLVED IN ELECTRICAL INSTALLATION REGISTERED FOR
VAT BY TURNOVER SIZE - 2013
- CHART 33 TOTAL REVENUE OF VAT REGISTERED FIRMS INVOLVED IN ELECTRICAL
INSTALLATION REVENUE £BN - 2008-2012
- CHART 34 VAT REGISTERED BUSINESSES INVOLVED IN ELECTRICAL INSTALLATION
WORK BY REGION (%) - 2013
- CHART 35 SPECIALISTS WITHIN ELECTRICAL CONTRACTOR INDUSTRY (%) - 2013
- TABLE 36 STANDARD SERVICES OFFERED BY A TYPICAL MEDIUM TO LARGE ELECTRICAL
- TABLE 37 ADDITIONAL AND GROWING SERVICES OFFERED BY A TYPICAL MEDIUM SIZED
- CHART 38 ELECTRICAL CONTRACTORS' AVERAGE PROFIT MARGINS 2007-2013 (%)
- CHART 39 MARKET SHARES BY ELECTRICAL CONTRACTING TURNOVER 2012/13
- TABLE 40 TOP 25 ELECTRICAL CONTRACTORS IN THE UK - BY ESTIMATED TURNOVER
FROM ELECTRICAL WORK 2012/13