A record year for the UK controls and BMS industry

According to the Building Controls Industry Association (BCIA), the UK market has recorded its best year since it started analysing the building-controls industry in 1991. The total value of products, installed systems, and service and maintenance supplied by controls and BMS companies operating in the UK home market during 2004 equalled £489 million. Market share Of this total, BCIA manufacturer members accounted for 53.7% and system specialist members 6.9%, giving the association a total 60.6% share of the market. The actual increase in 2004 compared to 2003 figures is £46.2 million or 10.4%. Adjusted for the annual rise in Retail Price Index (RPI), in real terms the industry achieved a 7.2% increase in sales. Total sales volume of product increased by 9.2% to £90 million. Within this rise, sales to OEMs increased the most, with a staggering 67.8% growth to £9.5 million. Sales to distributors also increased substantially, experiencing a 26% rise to £12. million. The total product content of primary installed systems reached an all time high of £68.4 million, a 1.2% increase. This figure of £68.4 million for the product content of primary installed systems saw gains and losses to systems specialists and manufacturers. System specialists increased their share of the market by purchasing and installing an additional 13.1%, totalling £46.4 million, in 2004 compared to the 2003 figure. Manufacturers directly installed only £22 million, a drop of 15.9%. Collectively the total primary installed systems revenue, based on product installed by manufacturers themselves or supplied direct to system specialists, rose to a highest yet recorded £282.3 million. This is equal to a 9.4% increase on the 2003 figure and exceeded the provisionally indicated 6.6% annual rise in the Construction Index. Manufacturers saw a decline in their revenues for primary systems revenues of 2% to £118.3 million, representing a fall in their share of the market to 41.9%. This was not the case with system specialists, however; their slice rose by a healthy 19.4% to give them a 58.1% share of the market and equal to a record high of £164 million. During 2004 the ‘value added’ element within primary systems (system engineering, panels, installations, and commissioning) grew to 75.2% of primary-systems revenues, up 1.7 percentage points on 2003. The roll-call of ‘records’ continued. The value-added portion of system installations, including product supplied via distributors, rose by 14.6% (£31.2 million) to a high of £244.6 million. When analysing the total-installed price for 2004, product represented 24.8%, system engineering and commissioning 30.2%, and panels, wiring, peripherals and installation 45%.
Dividing up the market — installation value added is the main driver for market growth in controls and building-management systems.
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Following a value last year, the UK market for controls and building-management systems not only recovered but also reach a new high.
The service-and-maintenance segment of the market also increased, with total revenue for Controls and building-management systems growing to £154.3 million, a rise of 5.1% (£7.4 million) over the 2003 figure. System specialists took ground from manufacturers, increasing their market share to 33.3%, while the manufacturers’ share dropped to 66.7%. To summarise The overall value of product supplied into the market increased by 9.2%. Product sales to OEMs increased by 67.8%, to distributors 26% and to system specialists 13.1%. Primary-installed-systems revenues increased by 9.4%. The system specialists’ share rose to 58.1% and manufacturers’ share fell to 41.9%. The value-added content rose by 14.6%, and service-and-maintenance revenues increased by 5.1%. All this activity produced a ‘bottom-line’ rise in total revenues for the revenues of the controls and building-management-systems industry revenues of 10.4% Further information on the Building Controls Industry Association is available on the web site below.
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