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Product category: Building Industry Research and Materials Testing
News Release from: AMA Research | Subject: 'Industrial Products Distribution Market
Edited by the Buildingtalk Editorial Team on 28 June 2007

Industrial distributors poised for
growth

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UK industrial products distribution market is forecast to grow according to AMA's 'Industrial Products Distribution Market - UK 2007' report - 2nd edition - recently published by AMA Research Limited.

The UK industrial products distribution market was worth an estimated GBP1.73 billion in 2006 and is forecast to grow by around 1-2% per annum over the period 2007-2010, according to AMA's 'Industrial Products Distribution Market - UK 2007' report - 2nd edition - recently published by AMA Research Limited The report, which is available for purchase at GBP625 from www.amaresearch.co.uk, reviews the industrial products distribution market in the UK, providing comprehensive analysis of the overall market and core product sectors including engineering and metalworking, workshop and maintenance, fluid and air control, fasteners, abrasives, power and hand tools, health and safety, janitorial products, packaging and stationery, also storage, security, access, site equipment and handling

The report provides analysis of the product mix, and core product sectors, in terms of size, major trends and key influences.

Profiles of the main suppliers and distribution channels are also included, with channel shares and forecasts up to 2010.

The report indicates that the industrial products distribution market has experienced only minimal rates of growth during 2006, and 2005, representing a decline in real terms.

However, certain sectors have performed better than others, with Health and Safety remaining relatively buoyant, also power tools, hand tools, janitorial (with a range of filtration and pollution control products), and workshops and maintenance products.

In addition, although abrasives, engineering, metalworking, and fasteners are regarded as more stable, opportunities for growth are indicated in the storage, security, access, site equipment, and handling sectors.

While the overall market has been adversely impacted by the migration of manufacturing to low cost overseas countries, key drivers for product innovation and market growth include environmental, energy efficiency and health and safety legislation, also products to enhance productivity through the installation and operation of a widening range of process control and automation devices.

In addition, predictive maintenance strategies and the availability of non-invasive machine condition monitoring equipment (including infra-red thermal imaging systems, and non-contact machine monitoring) is tending to fuel product opportunities, for example vibration monitoring equipment can be used to detect bearing failure.

AMA's report also provides an insight into future prospects for the industrial products distribution market with indications of moderate value growth to 2010 influenced by the long-term underlying trend of the migration of UK manufacturing to low-cost overseas economies.

In addition, a significant competitive threat to the industrial distributors is illustrated by share erosion from the builders and plumbers' merchants sector, including, for example, the recent acquisition of Buck and Hickman by BSS.

In overall terms, the increasing involvement of plumbers and builders merchants is likely to impact negatively on the growth prospects of certain product sectors more than others, reflecting the emphases of industrial distributors' product portfolios.

However, the report also indicates positive aspects that could have a much brighter influence on levels of market growth - for example, the wider application of Vendor Managed Inventory Systems, also Direct Line JIT Systems.

In general terms, product range diversification and expansion represent effective methods of counteracting the effects of the migration of manufacturing to overseas countries, while improvement in the DIY and industrial sectors in the UK in 2007 holds out the prospect of a more active home market in the short to medium term.

The 'Industrial Products Distribution Market - UK 2007' published by AMA Research is available in electronic or hard copy format and can be ordered online or by calling 0871 3103450.

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