Shutting down: High costs encouraged offshoring and outsourcing, lowering enterprise numbers

The Computer and Peripheral Equipment Manufacturing industry is highly competitive, which is displayed by low selling prices and tight profit margins. Demand for industry products has been promoted by cheap prices and the release of new and enhanced products, computer software and applications. However, computer and peripheral equipment manufacturing activity has largely shifted to countries that have access to low-cost labour and more efficient supply chains. The number of firms operating in the UK industry has consequently fallen over the past five years.The industry is expected to generate revenue of £972.7 million in 2018-19, down 3.8% on the previous year. Industry revenue is forecast to contract at a compound annual rate of 5.4%...read more.

Industry Statistics & Market Size
Revenue
£972.7m
Annual Growth 14-19
-5.4%
Forecast Growth 19-24
Profit
Employment
7,366
Businesses
719
Market Share of Companies

Industry Threats & Opportunities

  • Strong import competition and pressure on prices has contributed to revenue decline
  • The success of the UK-manufactured RaspberryPi contrasts with the industry’s offshoring trend
  • Rising business capital expenditure is anticipated to benefit industry demand over the coming years
  • Industry Report - Starting a New Business Chapter

    This industry is estimated to have moderate barriers to entry. A large number of businesses in the industry have a low revenue base, which reflects low capital costs. However, UK computer and peripheral equipment manufacturers are largely assembly operations that add little in-house technology content and tend to have limited reach and resources. There can be high barriers to developing significant size and a value-added operation. Major brand owners usually spend significant amounts on R&D and marketing. In addition, computer equipment buyers are increasingly focusing on purchasing from well-known, reputed and financially strong companies.Competition in the industry is high. Thi...purchase to read more.

    Additional Insights for the Computer & Peripheral Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Computer & Peripheral Equipment Manufacturing Industry are

  • Production of goods currently favoured by the market
  • Economies of scale
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Government capital expenditure in the Computer & Peripheral Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Computer & Peripheral Equipment Manufacturing Industry?

    Companies in the Computer and Peripheral Equipment Manufacturing industry produce or assemble electronic computers, including mainframes, desktop computers, laptops and servers. They also manufacture peripheral equipment such as storage devices, printers, monitors and keyboards.

    Industry Products
  • Desktop computers
  • Portable computers
  • Servers
  • Mainframe computers
  • Interface devices
  • Other final products
  • Industry Activities
  • Manufacturing computers
  • Manufacturing mainframe computers
  • Manufacturing hard drives, flash drives and other storage devices
  • Manufacturing optical disk drives
  • Manufacturing printers
  • Manufacturing scanners
  • Manufacturing computer accessories
  • Manufacturing smart card readers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Government capital expenditure
  • Demand from computer and gaming product retailers
  • Real effective exchange rate
  • Real household disposable income
  • Percentage of households with internet access

  • Current Performance
  • International trade
  • Demand, offshoring and opportunity
  • Niche products
  • Downstream spending
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Imports and exports
  • Falling prices and rising competition
  • Table: Computer & Peripheral Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer & Peripheral Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Computer & Peripheral Equipment Wholesaling
  • Computer & Gaming Product Retailers
  • Financial and Insurance Activities
  • Public Administration and Defence; Compulsory Social Security
  • Education
  • Consumers

  • Key Selling Industries
  • Electronic Component Manufacturing
  • Loaded Electronic Board Manufacturing

  • Products & Services
  • Servers
  • Desktop computers
  • Other final products
  • Portable computers
  • Mainframe computers
  • Interface devices
  • Chart: Computer & Peripheral Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Price
  • Product advancements
  • Substitute products
  • Capital expenditure

  • Major Markets
  • Public sector
  • Businesses
  • Retailers and wholesalers
  • Consumers
  • Chart: Major Market Segmentation for the Computer & Peripheral Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Computer & Peripheral Equipment Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer & Peripheral Equipment Manufacturing Industry

  • Industry Globalization
    Stone Computers Ltd,
  • Table: Stone Computers Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Computer & Peripheral Equipment Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Computer & Peripheral Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Creative Destruction
  • Economic development as the result of forces in the market created by the opportunity to seek profit.
  • Direct-Attached Storage
  • A storage device that is directly connected to a computer and cannot be accessed from any other computer.
  • Heterogeneous Goods
  • Goods made by companies that are significantly differentiated from each other.
  • Optical Disk Drive
  • A disk drive that uses laser light or electromagnetic waves near the visible light spectrum to read or write data to or from optical disks.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Computer & Peripheral Equipment Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Computer & Peripheral Equipment Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Computer & Peripheral Equipment Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Computer & Peripheral Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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