The total UK fire protection industry is now worth just under GB pound 3 billion, representing an annual growth rate of around 4% a year over the last five years, according to new market research published by the Fire Industry Association.
The total market for fire protection stood at GB pound 2,965 million last year, compared to GB pound 2,151 million in 2001. The market for passive protection represents GB pound 62% of this total ( GB pound 1,825 million), with the remaining 38% from the active protection sector. In terms of the value chain, products make up 42% of the market, installation 46% and maintenance contracts 12%. Installation has gained over product value over the last five years because of downward price pressure on components and products, partly due to lower cost imports. The value of installation and maintenance in the active sector therefore is proportionately higher than in the passive sector.
The report puts the overall growth in the fire industry down to a strong construction market, with a number of significant major projects such as Heathrow Terminal 5, inner city regeneration in Birmingham, Liverpool and Manchester and further development of Canary Wharf in London.
The real meat of the report comes with detailed breakdowns of sectors and sub-sectors within the market, covering sector size and growth, a commentary on product and market structure and future development, and forecasts for market size and growth for the period 2007-2009.
The report notes that the last five years has been a period of considerable change in the UK fire protection industry, principally with the introduction of the Regulatory Reform (Fire Safety) Order and the revised Building Regulations, the full effect of which will be felt in the next few years. The Waste Electrical and Electronic Equipment regulations will impose additional costs to manufacturers, which in turn may be passed on to customers and end users. Although there is little evidence to say that the gradual move from British Standards to European Norms has had any major impact on the industry, a number of sectors are only now beginning to make the necessary changes, which may incur increased costs.
As a reader of FSE, you will receive a 10% discount off the price of GB pound 450 for the full research if you place an order before 1 October 2007. For more information email [email protected] or telephone the FIA on: 020 8549 8839 and quote: fse/research.
