High double-digit growth for building-controls industry
Just when you might have thought that the building-controls market had peaked comes growth of well over 20% overall — according to the latest figures from the Building Controls Industry Association. Latest findings from the Market Information Service (MIS) of the Building Controls Industry Association’s reveals that the market is seeing a 24.3% rise in total volume of business from the previous year — up to the highest level since the MIS began in 1991 and a 5-year high. The most recent information is assembled from data submitted by BCIA members based on their business activity during the calendar year of 2007. The total volume of business for that period reached £560 million, and represents the total value of products, installed systems and service and maintenance supplied to the UK market. BCIA members have a 45.7% share of the UK market.
The volume of business revealed by the lastest survey of the Building Controls Industry Association shows a 5-year high.
These figures are in sharp contrast to the reports for 2005 and 2006, which showed slow growth. In fact, the total value of product during those years was lower than when the MIS began its research in 1991. Most significantly, the service and maintenance area has shown a significant rise of 18.8% from the 2006 level of £109 million up to £129 million. Again, this is in contrast to last year — during which the value of service and maintenance fell by over 25%. However, figures show that there has been a shift in responsibility for service and maintenance, as the manufacturers’ revenue from this area declined by 10.6%, to £46.9 million and a 36.3% market share. Meanwhile, systems installers now have 63.7% of the service and maintenance market, a rise of 40.6% to £82.4 million. While their involvement in the service side has dropped off, manufacturers have had an excellent year in product supply to third parties and in their own installations. The total value of product supplied into the market by manufacturer members of the BCIA also indicates a substantial increase over 2006 of 24.2% up to a 5-year peak of £104 million, again the highest value ever achieved since the BCIA’s MIS began. This increase includes a rise of 5.9% in sales to distributors which now stands at £14.8 million. There has also been an enormous rise of 32.5% to £80.3 million in the total product content of primary installed systems. There was a small drop in sales to OEMs of 3.1%.
The value of the market for controls and building-managment systems is significantly boosted by installation value added and subsequent service and maintenance.
In the primary installed systems market, product supplied directly to installers accounted for £51.6 million, up by 30.7% from last year. The product content of manufacturers’ own installations also rose by 36% to £28.7 million. Total primary systems revenue, based on product installed by manufacturers or supplied by them to systems installers, rose to £354 million. This was a major increase, since the BERR (formerly DTI) All Construction Index (ACI) rose by only 4.4%, indicating a primary systems revenue growth in real terms of 24.2% over 2006 and 23% over the 1991 datum level. Interestingly, although total sales of primary systems have risen over the past year, and manufacturer’s revenue within this increased by 10.8% to £118 million, their share of this market dropped to 33.4%. At the same time, systems installers’ revenues grew even more by 41.6% to £236 million and their share of the primary installations sector rose to 66.6%. The total value of all installations, including installation of product sourced via distributors, increased 26.9% to £422 million. Total value added for system engineering, panels, installation and commissioning within this sector also grew by 26.7% up to £68 million. This was a major contributor to the growth in overall market value. Overall, the MIS research figures show that 2007 has been a good year for members of the BCIA and the building-controls sector. The industry appears to have moved on from the very slow growth rates of 2005 and 2006. The underlying intrinsic value of the market based on all product supplied as well as service and maintenance rose significantly by 21.1% on 2006, up to £233 million, making 2007 the most successful year for the industry in real terms since 2002.
Growing business for the building-controls industry
The overall value of all product supplied into the market increased by 24.2% to £104 million. Primary installed systems revenues increased by 29.6% to £354 million. The total value of all installations increased by 26.9% to £422 million. Control and BMS industry service and maintenance revenues increased by 18.8% to £129 million. All product and service and maintenance revenues increased by 21.1% to £233 million. Total control and BMS industry revenues increased by 24.3% to £560 million. Products sales to distributors increased by 5.9% to £14.8 million. Product sales to systems installers increased by 30.7% to £51.6 million. Product included in manufacturers’ own installations increased by 36% to £28.7 million. Value added to engineer, install and commission systems increased by 26.7% £326 million.