Industry Analysis & Industry Trends
The Radiator and Boiler Manufacturing industry manufactures metal radiators, boilers, valves and pipework for central heating systems. Approximately three-quarters of heating systems in the United Kingdom are supplied by industry operators and competing imports, with the remainder mainly made up of electric or gas space heaters.
Revenue is anticipated to expand at a compound annual rate of 1.8% over the five years through 2016-17 to £1.2 billion. This includes an expected increase of 0.5% in the current year. Despite lingering economic uncertainty curtailing investment in downstream construction markets at the start of the period, the industry has performed relatively well over the past five years... purchase to read more
Industry Report - Industry Investment Chapter
The Radiator and Boiler Manufacturing industry has a medium degree of capital intensity. In 2016-17, wages are expected to absorb 15.9% of industry revenue and depreciation is expected to account for 4.1% of industry revenue. This indicates that for every £1.00 invested in plant and equipment, £3.88 is spent on labour Industry capital expenditure depends on expected trends in the downstream building markets and government legislation covering central heating systems, subsidies and other incentives. As a share of total revenue, capital expenditure fluctuates widely from year to year, generally corresponding with investment in new plants and processes by the larger players in the industry.
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