Report examines fall protection market

The fall protection equipment market in Europe - which forms part of the personal protection equipment (PPE) market - faces several challenges that threaten to restrict its expansion.

While it is clear that the fall protection equipment market in Europe - which forms part of the personal protection equipment (PPE) market - holds substantial growth potential, it faces several challenges that threaten to restrict its expansion.

One of the most critical of these is the lack of sufficient end-user awareness and education.

Historically, many end-user industries have remained largely unaware of the need to use fall protection equipment or have shied away from using it, daunted perhaps by its technology or high costs.

According to latest analysis from Frost and Sullivan, this is gradually changing as end users increasingly realise the importance of such equipment in maintaining high safety standards and averting potential accidents at the work site.

In particular, some end-user sectors such as the construction industry have a strong need for improved safety standards.

Identifying and targeting these segments through focused awareness campaigns is likely to offer greater market potential.

"Education and training are crucial in the fall protection equipment market," remarks Frost and Sullivan's Programme Manager, Dr Brian Balmer.

"Successful products are those that focus on education to appeal to technology-averse end users".

" In addition, due to the extremely technical nature of some of the equipment, training is essential to ensure that it is used properly." The telecommunications industry is currently the largest single user of fall protection equipment, and has a relatively high awareness of worker safety.

Although there is still the potential for growth here, even more is expected from other areas such as the construction industry and general site work.

As the largest industrial employer in Europe with annual revenues exceeding EUR 900 billion and employing around 26 million workers in the European Union (EU), the construction industry is known for its low level of compliance to legislation regarding safety at height across Europe.

However, encouraging growth rates of approximately 0.8 per cent in 2004 combined with increasing conformity with legislations and rising awareness are expected to drive sales of fall protection equipment in this industry.

The demand for fall protection equipment is also expected to increase in end-user applications such as utilities, transportation and the manufacturing industry, as more restrictive regulations are adopted, especially in Southern Europe.

As part of the PPE market, fall protection is governed by the PPE directive 89/656/EEC, which stipulates that employees working in an otherwise unprotected area with a possible fall distance in excess of two metres must wear fall arrest equipment.

"As legislations become more rigorously enforced across Europe, the number of workers that fall under the directive's conditions will increase, driving market growth," notes Dr Balmer.

"In addition to the increasing number of wearers, legislative trends can also accelerate product replacement rates, further boosting market growth." Accordingly, the European fall protection market is forecast to grow from EUR 190.0 million in 2003 to EUR 248.9 million in 2010, at a compound annual growth rate (CR) of 3.9 per cent.

This growth is expected to extend to new end-user segments as well as the more established ones such as telecommunications.

Growth also varies significantly from region to region, with some countries - such as the United Kingdom - being far more proactive in implementing legislations than others, such as Italy.

Independent of legislation, end users themselves are beginning to understand the financial benefits of purchasing fall protection equipment.

In a promising development, these products are now being perceived as an investment that insures against both human and financial costs to the company.

However, European manufacturers will have to guard against the threat posed by low-priced imports from the Far East.

In order to prevent end users from moving to less expensive products, manufacturers will have to make strong efforts to build customer loyalty.

In addition, the quality standards laid down by the EU are likely to favour manufacturers that provide high-quality products.

"Conformance to EU norms is essential to remain competitive in the fall protection equipment market which, due to its safety-oriented nature, is highly influenced by regulations and policies," concludes Dr Balmer.

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