Executive Summary
- The first quarter of 2026 has seen a significant drop in business optimism across heating and ventilation and building electrical systems according to BEAMA – but electricity networks infrastructure has seen a boost in optimism and sales
- Capacity utilisation remained ‘stubbornly modest’ among BEAMA membership, with overall utilisation continuing at 75% for the third successive quarter
- BEAMA noted that, until capacity utilisation peaks over 80%, there cannot be confidence in seeing growth needed to supply the future markets for networks and housing
The latest BEAMA Market Pulse report has shown that the first quarter of 2026 has seen a significant drop in business optimism among the association’s membership – apart from the electricity networks infrastructure (ENI) sector.
The trade association for manufacturers and providers of energy infrastructure technologies and systems found that overall business optimism across all members fell from +12 to -28 over the past six months. This represents the lowest number since the pandemic with an extremely pessimistic -88 overall, although the middle quarters of 2022 saw numbers of -22 and -25 respectively.
Electricity networks infrastructure recorded a positive number at 11.1% optimistic. This contrasted sharply with those most closely linked to the construction industry; specifically heating and ventilation (H&V, -50%) and building electrical systems (BES, -66.7%).
ENI was also out in front when it came to sales by sector, registering an uptick of 66.7% over the past quarter. H&V and BES, meanwhile, remained flat. The report notes the apparent success of the Electricity Network Sector Growth Plan, to which manufacturers are responding positively, while a more lukewarm response was noted for the Warm Homes plan.
Capacity utilisation remained ‘stubbornly modest’ among BEAMA membership, with overall utilisation continuing at 75% for the third successive quarter. In terms of factors likely to constrain output in the next quarter, demand (51.7%) was the biggest concern, ahead of component and material supply (17.2%), raw material prices (10.3%), and labour availability (10.3%). Capacity constraints, cited by only 3.4% of those polled, was less of a factor. “The growth potential for the UK’s electrical equipment industry is clear but making full use of capacity and capability will require substantial improvements,” the report noted.
BEAMA CEO Yselkla Farmer noted that, until capacity utilisation peaks over 80%, there cannot be confidence in seeing the growth needed to supply the future markets for networks and housing.
The report comes amid a political change, published on the same day as Andy Burnham officially took over the reins as UK Prime Minister. Writing in her foreword, Farmer noted her hope that a leadership change could ‘also signify a step change in decisive action to keep on track to accelerate electrification.’ Alongside this, recent announcements by Ofgem on ED3 methodology ‘drew close attention to the need for clear and concise electrification policy for heat and transport in the UK.’
The Electricity Networks Sector Growth Plan will be published on September 8 to ‘sharpen the focus on what’s needed to capture the value add from networks investment to support the electrification of heat and transport and a growing clean power sector’, Farmer added.
