The electrical supply chain industry saw a sharp rise in business confidence in Q2 2025, well above the five-year average, even as sales dropped to their lowest levels since the pandemic.
BEAMA, the trade association representing 200 UK manufacturers of electrical products vital to the UK’s efforts to modernise the grid and decarbonise, has published its latest Market Pulse report as part of the #AcceleratingElectrification campaign. The findings reveal a welcome boost in optimism across the sector driven by the prospects of trade deals and UK Government strategy.
This marks a dramatic turnaround from Q1, when sales were strong, but optimism was low. Despite weaker sales, driven in part by seasonal factors and delays to major projects, sentiment has now shifted in a more positive direction.
However, overall sales volumes declined sharply as part of a more nuanced picture for manufacturers. While 40% of members still reported growth, the impact of delays to orders from trading uncertainty at the start of 2025 has had a knock-on effect. Optimism will also have been boosted from a significant recovery in exports too, above the five-year average, further demonstrating the sector’s value to UK Plc. painting a more nuanced picture than the headline figures suggest, and looking ahead, 95% of respondents expect to maintain or increase sales in the coming months, helping explain the surge in confidence.
Source: BEAMA Q2 MARKET PULSE
Optimism is also underpinned by strong investment intentions, which also bounced back above the five-year average in early 2025 after a sluggish 2024, and remain high. The majority of planned investment is directed towards product improvement, with previous years’ focus on R&D now translating into solutions. Plant and equipment are also targeted for investment as businesses prepare for increased output to meet the growing demand anticipated. With 95% of respondents expecting to maintain or increase sales in the coming months, the continued optimism and investment intentions are reliant on a stable trading environment globally and the continued policy commitment in the UK.
Source: BEAMA Q2 MARKET PULSE
For the first time, this quarter’s Market Pulse report gives an indication of the size of the network manufacturing sector and its contribution to the UK economy. The average company supporting the networks sector expects their UK turnover to double by 2035, and their UK employment to more than double, indicating the essential part the electricity supply chain will play in driving economic growth and prosperity.
Yselkla Farmer, CEO of BEAMA says, “The progressive package of measures stemming from the Industrial Strategy is clearly driving the optimism we are seeing from manufacturers, and this is delivering for the UK economy. We have worked hard with Government to ensure the growth opportunities within our sector are acknowledged within the Industrial Strategy, including networks being identified as a foundational sector and recognition for the opportunities from the broader range of low carbon heat and hot water products that we hope will form part of the warm homes agenda in the UK.”
“Our members are right at the heart of the UK’s grid infrastructure upgrades and the push for clean power by 2030. We know the pressure on our supply chains is only going to increase in the months and years ahead. That’s a challenge for manufacturing capacity, but it’s one BEAMA members are ready to step up to and seize the opportunity for growth in the UK.
“The electrotechnical sector is encouraged by the government’s positive signals in its Industrial Strategy which supports this effort. Now is the time for clear and consistent action that helps secure the investments needed to deliver the growth that is essential for manufacturers, and the wider UK economy.”
