This Market Report analyses the UK wholesale market for electrical materials and components. In 2005, the market was worth an estimated £3.06bn, an increase of 2.5% on the previous year. The materials and products covered in this report are those primarily used in the construction industry and, to a lesser extent, in the industrial sector. Data on the construction industry output are given in the report.

Electrical wholesalers stock and sell a wide range of products. Principal categories include cable, wire, consumer units, fusegear, circuit breakers, plugs, sockets, switches, lighting and heating equipment. The main customers for these products are electrical contractors, although electrical wholesalers also sell to industrial/commercial companies, local authorities and the do-it-yourself (DIY) market. The electrical contractor customer base comprises thousands of mostly small firms. As well as holding a wide range of stock, electrical contractors also provide trade credit facilities and technical advice.

Consolidation continues in the electrical wholesale market, with the UK branch network now dominated by a few very large companies with a broad product range. Some of the largest companies operating in the UK market are subsidiaries of foreign companies. In addition to these large companies, there are many smaller companies, some of which are focused on the distribution of specialist products.

Among the major issues currently affecting the electrical wholesale market is competition. Electrical wholesalers are not the only route to market for electrical products. For high-volume applications, components are sold direct from manufacturers to users. Other major intermediate routes are builders' merchants and DIY stores — both of which have the capability of increasing their share of the electrical products market — and there are signs that moves in this direction are beginning to take place.

Another factor affecting the electrical wholesale market is Building Regulations, which continue to be developed. There are now several aspects that represent opportunities for electrical wholesalers, especially regulations relating to fire safety, ventilation, conservation of fuel and power, and electrical safety.

The future of the electrical wholesale market depends largely on developments in the construction industry. There are government plans for a major housebuilding programme, large infrastructure projects in the South East and the London Olympic Games in 2012 — all of which should provide business for electrical wholesalers. There is also a general increase in the use of electrical products across the whole economy, again stimulating business for the sale of electrical components. High energy prices are driving initiatives to conserve heat and power, much of which can be achieved by electrical controls. New prefabrication techniques in the construction industry could lead to a decrease in demand for some traditional components, but lead to new markets for others. Electrical wholesalers could also be involved in the recycling chain for end-of-life electrical materials and components. Regarding competition, electrical wholesalers can expect increased challenges from builders' merchants and DIY stores.

This Market Report analyses the UK wholesale market for electrical materials and components. In 2005, the market was worth an estimated £3.06bn, an increase of 2.5% on the previous year. The materials and products covered in this report are those primarily used in the construction industry and, to a lesser extent, in the industrial sector. Data on the construction industry output are given in the report.

Electrical wholesalers stock and sell a wide range of products. Principal categories include cable, wire, consumer units, fusegear, circuit breakers, plugs, sockets, switches, lighting and heating equipment. The main customers for these products are electrical contractors, although electrical wholesalers also sell to industrial/commercial companies, local authorities and the do-it-yourself (DIY) market. The electrical contractor customer base comprises thousands of mostly small firms. As well as holding a wide range of stock, electrical contractors also provide trade credit facilities and technical advice.

Consolidation continues in the electrical wholesale market, with the UK branch network now dominated by a few very large companies with a broad product range. Some of the largest companies operating in the UK market are subsidiaries of foreign companies. In addition to these large companies, there are many smaller companies, some of which are focused on the distribution of specialist products.

Among the major issues currently affecting the electrical wholesale market is competition. Electrical wholesalers are not the only route to market for electrical products. For high-volume applications, components are sold direct from manufacturers to users. Other major intermediate routes are builders' merchants and DIY stores — both of which have the capability of increasing their share of the electrical products market — and there are signs that moves in this direction are beginning to take place.

Another factor affecting the electrical wholesale market is Building Regulations, which continue to be developed. There are now several aspects that represent opportunities for electrical wholesalers, especially regulations relating to fire safety, ventilation, conservation of fuel and power, and electrical safety.

The future of the electrical wholesale market depends largely on developments in the construction industry. There are government plans for a major housebuilding programme, large infrastructure projects in the South East and the London Olympic Games in 2012 — all of which should provide business for electrical wholesalers. There is also a general increase in the use of electrical products across the whole economy, again stimulating business for the sale of electrical components. High energy prices are driving initiatives to conserve heat and power, much of which can be achieved by electrical controls. New prefabrication techniques in the construction industry could lead to a decrease in demand for some traditional components, but lead to new markets for others. Electrical wholesalers could also be involved in the recycling chain for end-of-life electrical materials and components. Regarding competition, electrical wholesalers can expect increased challenges from builders' merchants and DIY stores.