Flowtech Fluidpower 2015 Annual Report
The British Fluid Power Association economic forecast is predicting continued growth in the UK hydraulic and pneumatic markets with an average annual growth rate of 2.5% for hydraulics and 3.0% for pneumatics during 2016 to 2019. This is despite unexpected developments in the global economy such as steep oil price drops, the Chinese economic slowdown and the weakening euro. Positive factors in the UK economy include the re-emerging construction market and associated mobile equipment sector and the underlying strength of key pneumatics-using sectors such as transport equipment, industrial electronics and precision equipment.
The pneumatics market has been more resilient to downward global trends and has been supported by the transport equipment industry which has not been as impacted by the strong pound. Acquisitions by the Group in the year have provided entry into sectors proving to be resistant to negative global trends. UK distributors have performed above industry expectations and this trend is expected to continue through the next four years.
Whilst the overall hydraulics market suffers from global pressures, UK distributors have managed to defy the negative impacts with high-frequency orders running well ahead of the overall market. Research continues to suggest that larger manufacturers are increasingly relying on these distribution channels. Market share is expected to increase incrementally for distributors who are equipped to offer competitive pricing and modern inventory management, services that are actively supported by FTUK in its distributor partnerships.
The Group has a wide and varied customer base which in turn services an extensive range of industrial sectors, spreading the risk of adverse market conditions. The engineering sector is predicted to experience slower growth rates than the first half of the decade, but is expecting growth in key pneumatics-using sectors. In contrast, the construction sectors, of residential, non-residential and civils are all demonstrating a positive outlook supported by ongoing government initiatives. Extensive projects such as Crossrail and the likely upcoming expansion of London's airport capacity should ensure that transportation construction will remain robust over the coming years. This has direct benefits to the PMC and Process divisions and FTUK is impacted indirectly through its customer base. Another key sector for the Group is transport which is also predicted to expand with continued investment in several UK factories from Nissan, Honda and BMW.
The British Fluid Power Association economic forecast is predicting continued growth in the UK hydraulic and pneumatic markets with an average annual growth rate of 2.5% for hydraulics and 3.0% for pneumatics during 2016 to 2019.
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