Operators are seeking ways to add value to industry products
London, United Kingdom (PRWEB) January 04, 2013
The Computer & Peripheral Equipment Manufacturing industry is very competitive, characterised by falling prices and low profit margins. Demand for computers and peripheral equipment has been promoted by falling prices and the release of new and enhanced products, software and applications. However, computer and peripheral equipment manufacturing has tended to shift to countries that have access to low-cost labour and deep and efficient supply chains. As a result, the number of firms and establishments in this industry has been falling.
The UK industry is expected to generate revenue of £1.13 billion in 2012-13, down 0.5% compared with 2011-12. The domestic market for computers and peripheral equipment is estimated at £8.1 billion in 2012-13, down 0.5% compared with 2011-12. Industry revenue is expected to contract by an annualised 8.5% in the five years through 2012-13 due to falling unit prices, weak domestic demand and growing imports. According to IBISWorld industry analyst Nigel Fitzpatrick, “domestic demand for industry products has been negatively affected by the slow economy and associated weakness in business investment and consumer spending”. Some unprofitable operations have closed and some companies have transferred production capacity from the UK to countries where manufacturing costs are low, such as China and countries in Eastern Europe.
Industry revenue is expected to continue to fall over the next five years to 2017-18, but at a much lesser rate than it did in the previous five years to 2012-13. Fitzpatrick adds, “industry activity in the next five years will be affected by a loss of market share in both domestic and export markets”. Competitive downward pressure on average unit selling prices will also negatively affect revenue.
The Computer & Peripheral Equipment Manufacturing industry has a low level of market share concentration. The top four players are expected to account for 18.9% of industry revenue in 2012-13. Major companies include RM, Stone Group and Viglen.
For more information on the Computer & Peripheral Equipment Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in the Computer & Peripheral Equipment Manufacturing industry produce electronic computers, such as mainframes, desktop computers, laptops and computer servers; and computer peripheral equipment, such as storage devices and input/output devices such as printers, monitors and keyboards.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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