US electric power equipment shipments are expected to advance 3.5 percent annually through 2002...

US electric power equipment shipments are expected to advance 3.5 percent annually through 2002 to $14.8 billion, with demand reaching $15.4 billion. Growth will be fueled by continued economic expansion and healthy advances in nonresidential fixed investment. Growth will also be bolstered by

the positive outlook for producer durable equipment production, especially for electrical and electronic equipment, and the increasing use of computers and other sensitive electrical devices, which require more advanced distribution equipment to prevent power surges and failures. These and other trends are presented in Electric Power Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Deregulation of the electric power industry will impact demand as utilities are likely to postpone investment in new electrical equipment until the uncertain business climate stabilizes. Demand for larger, more expensive equipment, especially large power transformers, will be most affected. However, the need of electric utilities to reduce operating costs will stimulate demand for certain types of electric power equipment, such as automation systems, which increase efficiency and profit margins. Therefore, switchgear relays will offer the best growth opportunities, as these devices are an important component of automation systems.

The government and institutional market will experience the fastest growth based on strong activity in public building construction, led by the public education sector. The industrial sector will also present opportunities due to the increasing use of advanced electrical machinery, which will expand the demand for high quality power distribution and protection equipment, including non-utility and specialty transformers, and voltage fuses. Growth within the commercial market will be driven by the expanding use of computers and other office equipment which are sensitive to power fluctuations and require more sophisticated power distribution and protection equipment. Electric power equipment with strong growth potential within the electric utilities market include metal-clad switchgear, switchgear relays and duct, due to the increasing investment in automated systems which produce greater efficiency and reduce operating costs.

Electric Power Equipment (published 9/98, 214 pages) is available for $3400 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, Ohio 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Full text is also available online through commercial database companies and the www.freedoniagroup.com Web site.

If information in this release is used in an article, please attribute information from this news release to The Freedonia Group, Inc. (Cleveland, OH) and include, if possible, the price of the report. We would also appreciate (at your convenience) a copy of the article or publication in which we appear.