Tools for Marketers

UK Market Overview

• The UK’s electronics industry is still the fifth largest in the world, with a £55 billion annual turnover, second only to Germany in Europe. There are around 12,500 electronics businesses in the UK, most of which are SMEs. The industry employs around 250,000 people.
• The UK is the 2nd largest European market for semiconductors and electronic devices with a value of over £3 billion sales projected in 2007.
• To contrast, India is one of the fastest growing semiconductor markets in the world. Semiconductor consumption reached £600 million in 2005, and is expected to reach £1.5 billion by 2010.
• The UK is one of the largest software and services markets in Western Europe, valued at £27bn and employing 249,000 people.
• About 90 per cent of UK electronics companies are SMEs, contributing about ten per cent of total turnover. They represent a significant force and suppliers’ marketing plans must address these firms locally to nurture relationships.

Sector Spotlight - Aerospace and Aeronautics

• The UK aerospace market’s turnover continues to rise year on year and increased 5.5% from 2005 to £19.82bn in 2006, 2nd only behind the USA.
• The UK unquestionably offers one of the world’s most innovative and productive locations with R&D investment of over £2.5bn in 2006. This flair for innovation coupled with excellent capabilities and experience, continues to attract new orders on a global scale. In 2006 the UK new order intake was up 5.8% on the previous year in the aerospace industry at £26.18bn and with about 60% of the annual turnover being exported, it is one of the country’s biggest exporting industries.
• The UK space industry is also one of the UK’s most dynamic, hi-tech, value added sectors. It currently adds £7 billion to the UK economy.

Sector Spotlight – Automotive Transportation

• Total UK automotive exports currently exceed £20bn annually. The UK has a number of global strengths including a motorsport cluster, a 30% share of European internal combustion engine production and a No. 2 world ranking for premium car production.
• The UK is unique in the European automotive industry in that the majority of the workforce is in the automotive supply chain rather than the vehicle manufacturing sector.
• The UK motorsport industry is a technology-driven global leader, and has a unique cluster of high performance engineering companies known as Motorsport Valley. Approximately 2,200 companies, mostly SMEs, are involved in the UK motorsport manufacturing industry and its wide-ranging support and service activities. Exports are worth in the order of £2bn per year. These firms invest up to 40 per cent of turnover in R&D activities.
• These precision engineering and advanced technology skills are increasingly exploited by the mainstream automotive industry. By 2010 electronic systems will account for 40% of the total cost of a vehicle, compared with about 20% today.
• The UK construction equipment industry, worth an estimated £8.5bn, is the third largest exporter of components and accessories in the world by volume and value, after Japan and the USA. It comprises multinationals manufacturing original equipment, such as earthmovers, road construction and maintenance, and drilling and tunnelling machinery, plus a broad base of components and accessories suppliers.

Design Strengths Drive R&D Innovation

• The UK Department of Trade & Industry scoreboard that measured innovation showed that in 2006 UK companies spent £19.2 billion on R&D. It analysed the R&D spending of the world’s top 1,250 global companies, including 72 from the UK. It found that, when it comes to global R&D, UK firms are keeping pace with their US counterparts. Both recorded an 8 per cent rise on the previous year.
• UK R&D in the software sector registered 13 per cent growth in 2006. The aerospace sector also put in a particularly strong performance, posting a 21 per cent increase.
• The UK is home to the largest number of Europe’s independent chip and fabless design houses, driving 40% of all European semiconductor design revenue. The number is steadily increasing with the UK also having the greatest proportion of high-tech start-up activity in Europe.
• Sixty six per cent of total UK R&D expenditure is generated by the private sector. Foreign-owned companies account for around 45 per cent of all business R&D. Foreign investors recognise the UK’s strength in R&D. Seventy per cent of the foreign-owned companies here maintain higher-intensity R&D activity in the UK than in their home territories.
• Electronics accounted for 18 per cent of total UK inward investment projects in 2005.

Strategic Marketing

Ten strategic marketing reasons why companies should invest in face-to-face marketing at shows like ess:

1. Conveniently see the entire marketplace in one setting.
2. Show your entire product offering and multiple lines to key buyers in a focused business setting.
3. Emphasise the market position of your business through highly visible messaging of your products and services.
4. Evaluate opportunities and threats among the industry landscape.
5. Meet with existing accounts to exchange product information and update on existing orders status.
6. Take opportunities to meet new buyers and learn about their novel situations and challenges.
7. Use speaking opportunities to extract maximum value from marketing collateral generation activities and resources.
8. Meet with associations and industry consortia to learn about potential sponsorship programs that will help to better communicate the strategic orientation of your business.
9. Meet with leading press editors from international media houses and technical journals.
10. Make decisions from information that you gained at the show.