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Hot times drive cooling sales

THE pronounced effect of the weather on UK air conditioning sales is highlighted in a new report from MBD covering the period 2001-2005.
A disappointing sales increase of 2% in 2005 was attributed to the summer of 2004, one of the wettest and most humid on record. While the market grew to £649.7m, the market was unable to consolidate the 5% increase achieved in 2004 as a result of 2003's favourable weather.

This year MBD expects oversupply to hinder the development of the market, resulting in a moderate 2% increase .
The UK market is expected to reach £693m (at 2005 prices) by 2010, representing anticipated overall growth of 7% in real terms compared with the value of the market in 2001. Annual growth is expected to be relatively consistent over the forecast period at between 1% and 2% each year.
Much of this growth is expected to be attributed to the industrial and commercial new construction activity in which new developments are more likely to be constructed with air conditioning built in. Demand from the refurbishment sector is projected to continue, as units and developments built in the 1970's are now due for renovation as building regulations demand.
With year-on-year growth, sales of packaged equipment is expected to reach £364.6m in 2010 (at 2005 prices) - an 8% increase in real terms.
Sales of central plant air conditioning equipment are also expected to increase over the next five years, but at a more modest 5%.
The UK Air Conditioning Market Development Report is available from MBD, priced at £550. Tel: 0161 236 6845.

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