Spain: Low and medium voltage electrical material sector ICEX sector reports one two three four five six Sector definition Spanish sector overview Foreign trade Leading companies Trade fairs Useful addresses The low and medium voltage electrical material sector one The products included in the low and medium-voltage electrical material sector are those materials, equipment, components and accessories for use in fixed electrical installations, both industrial and domestic, and in the construction sector. The sector is made up of the following product groups: Switchgear (capacitors, relays, etc.) Cables and insulation Containers (electrical cabinets and boxes) Technical lighting (lighting for hotels, public streets, etc.) Installation material (wiring, etc.) Small electrical supplies (switches, bulb sockets, etc.) Domotics Spanish sector overview two The Spanish sector for low and medium-voltage electrical material is made up of 255 companies that employ 16,255 workers with sales of €5.9 billion in 2010. A large percentage of these companies are small and medium-sized enterprises that can be highly flexible in their decision-making. The characteristics of the sector include the progressive integration of leading national companies into multinational groups, which in some cases have their decision-making centers outside of Spain. YEAR Companies Jobs Sales* *€ millions 2007 258 21,166 9,028 2008 260 20,101 8,243 2009 2010 258 255 16,985 16,255 5,721 5,954 Source: Afme Low and medium voltage electrical material sector 2 The sector has suffered a significant decline since 2008, primarily due to the downturn in construction, which has hit companies whose sales depend on this sector particularly hard. Products for the industrial sector were not affected by the crisis until later, but by 2009 they were falling at a similar rate to the others. However, in 2010 sales have picked-up, mainly due to an improvement in the industrial sectors that also use some domotics components. Geographic distribution Region % Catalonia Madrid Aragon Valencia Region Basque Country Other 45% 19% 9% 8% 8% 11% Source: Afme Companies in the sector are located throughout the country, with a notable concentration in Catalonia, which represents 45% of the sector. Madrid is home to 19% of companies thanks to a significant number of multinational firms that have their headquarters there. Aragon accounts for 9% of companies while the Valencia region and the Basque Country have 8% each. The remaining 11% is distributed among the other regions. Most Spanish companies specialize in a specific market segment. There is fierce competition among them and their positions in the different niche markets depend on technological innovation, new designs, ease of installation and competitive prices. Technological evolution (R&D+i) R&D+i is one of the competitive advantages of the Spanish sector. In the area of automation in homes and in commercial or industrial buildings, research is being carried out into remote control for all building functions, as well as for energy saving. In the management of public lighting, R&D is focused on the rational use of energy, controlling switch-on and switch-off times, as well as lighting intensity. There are also technologies being developed to improve energy efficiency. Low and medium voltage electrical material sector 3 Sector strengths The strengths of the Spanish low and medium-voltage electrical material sector include: • Constant innovation in products and manufacturing processes. • Quality. Most companies in the sector are ISO 9002 certified, and an increasing number are also ISO 9001 certified. • Increased competitiveness. Both in costs and in the level of technological innovation, to prevent production relocation. • Specialization. Developing specific products that enable the company to position itself in certain sectors. • Product certification. Compliance with national and international standards. • Companies’ ability to adapt to the new economic and technological circumstances. Sector associations AFME Association of Electrical Material Manufacturers www.afme.es Established in 1982, it currently has 132 members with combined sales accounting for 69% of all sector sales and 73% of all the Spanish sector’s exports. AMEC-AMELEC Spanish Association of Manufacturers and Exporters of Electrical and Electronic Material www.amec.es/amelec It has 64 members, with sales representing 16% of the sector sales and 22% of its exports. Low and medium voltage electrical material sector 4 Foreign trade three Spanish trade balance of the low and medium-voltage electrical material sector 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 -2,000,000 2007 2008 2009 2010 -4,000,000 Exports 2007 2008 2009 2010 3,255,091 3,188,739 4,932,369 5,647,331 Imports 4,385,479 4,440,932 6,498,187 6,599,666 Balance -1,130,388 -1,252,192 -1,565,818 -952,335 Data in € 000s Source: created internally based on Customs data Country ranking of Spanish exports by the low and medium-voltage electrical material sector Ranking 1 2 3 4 5 6 7 8 9 10 Country France Germany Italy Portugal United States United Kingdom Morocco Mexico China Turkey Total top 10 Other countries Total exports 2007 2008 2009 2010 1,009,321 641,819 329,831 428,509 597,191 236,139 205,765 86,057 178,960 78,247 3,791,838 1,973,519 5,765,357 862,908 638,977 312,614 424,421 733,462 221,002 301,986 81,216 122,083 79,746 3,778,415 2,156,948 5,935,363 797,086 612,052 284,958 352,282 290,299 145,975 186,134 95,267 120,059 84,012 2,968,124 1,964,245 4,932,369 1,069,159 634,059 483,042 400,985 235,133 230,780 213,469 121,950 117,341 105,230 3,611,148 2,036,183 5,647,331 Data in € 000s Source: created internally based on Customs data Low and medium voltage electrical material sector 5 Product ranking of Spanish exports from the low and medium-voltage electrical material sector 2007 2008 2009 2010 1 85030099 – PARTS FOR APPARATUS OF HEADINGS 8501 OR 8502. 454,839 738,196 838,331 700,913 2 85451100 - CARBON ELECTRODES OF THE TYPE USED IN OVENS 252,563 272,951 211,989 253,803 3 85444995 - ELECTRICITY CONDUCTORS 146,570 182,228 188,396 253,200 4 85444290 - OTHER COAXIAL CABLES AND OTHER COAXIAL ELECTRIC CONDUCTORS 378,428 331,985 193,310 238,649 5 85011099 – SYNCHRONOUS MOTORS OF AN OUTPUT NOT EXCEEDING 37.5 W 267,473 200,422 187,302 185,595 6 84129080 – PARTS OF MOTORS AND MACHINERY NOT MENTIONED IN OTHER HEADINGS 45,168 64,943 81,098 173,508 7 85444999 - OTHER ELECTRIC CONDUCTORS 164,133 144,748 105,377 151,484 85381000 – BOARDS, PANELS, CONSOLES... AND OTHER BASES FOR GOODS OF HEADING 8537. 130,514 140,171 119,281 149,716 85369010 - CONNECTIONS FOR CABLES WITH A VOLTAGE NOT EXCEEDING 1,000 VOLTS. 180,681 176,431 125,522 144,899 85030091 – PARTS FOR USE SOLELY OR PRINCIPALLY WITH THE MACHINES OF HEADING 8501 OR 8502, OF CAST IRON OR STEEL 428,012 390,442 202,291 143,188 Total top 10 products 2,448,382 2,642,518 2,252,897 2,394,955 Other products 3,316,975 3,292,845 2,679,472 3,252,376 Total sector exports 5,765,357 5,935,363 4,932,369 5,647,331 Ranking 8 9 10 Data in € 000s Source: created internally based on Customs data Low and medium voltage electrical material sector 6 Leading companies four The leading companies in the sector by volume of sales are the following: SOLER Y PALAU TOP CABLE SIMON LUXIONA FERMAX CIRCUTOR www.soler-palau.com www.topcable.com www.simon.es www.troll.es www.fermax.com www.circutor.com Source: Afme Trade fairs five FAIR MATELEC International Exhibition of Electrical and Electronic Equipment LOCATION Madrid, Spain www.matelec.ifema.es FAIR CONSTRUMAT International Construction Fair LOCATION Barcelona, Spain www.construmat.com FAIR EXPO ELECTRICA INTERNACIONAL LOCATION Mexico City, Mexico www.expoelectrica.com.mx Low and medium voltage electrical material sector 7 FAIR LIGHT + BUILDING Trade Fair for Architecture and Technology LOCATION Frankfurt, Germany www.light-and-building.de FAIR INDUSTRIE MESSE Multi-sector fair including industrial-grade electrical material LOCATION Hannover, Germany www.hannovermesse.de FAIR ELEKTRO Exhibition for electrical equipment and engineering LOCATION Moscow, Russia www.elektro-expo.ru FAIR MIDDLE EAST ELECTRICITY LOCATION Dubai, United Arab Emirates www.middleeastelectricity.com FAIR ENERGETAB International Power Industry LOCATION Bielsko-Biala, Poland www.ziad.bielsko.pl Low and medium voltage electrical material sector 8 Useful addresses six ITE Electrical Technology Institute www.itenergia.com ELECTRO NEWS Sector publication www.tecnipublicaciones.com/sumarios/default.asp DISTRELEC Sector publication www.tecnoedicion.com ELECTRA Sector publication www.elinstalador.es ELEKTROINSTALACIÓN Sector publication http://www.elektroprofesional.com/elektroinstalacion.asp ELEKTROPROFESIONAL Sector publication www.elektroprofesional.com/ Low and medium voltage electrical material sector 9 © Spanish Institute for Foreign Trade (ICEX). Pº de la Castellana 14-16 28046 MADRID | 902 349 000 Report prepared in 2011 by the Information Dept. of the Industrial Products and Technology Division. www.spaintechnology.com www.icex.es | www.spainbusiness.com