Members of ITSA, the interconnects trade association representing members in the UK, has released it latest report, covering the third quarter of 2025. It saw sales of connectors rise by 7% on this time last year, and orders up by 9%.
According to the report the T&M market fell 12% and so did the broadcasting market 4%. However, the mass transport market went up 66% – linked to key rolling stock and infrastructure projects, medical market went up 15% and mil/aero up 2%. Distribution continued to perform well with an increase of 16% year-on-year.
The overall view for all members was that 2025 has been a particularly challenging year with the first 6 months proving difficult. There have been quite a variation of performance depending on markets with some members enjoying an overall double-digit growth whereas others saw a very flat performance and, in some cases, a small decline.
The mil/aero market was highlighted as being very sluggish but recently the enquiry level of activity has increased, as it has in a number of other markets such as medical and data comms (data centres).
Although as a sales channel distribution has performed well, this has again been due to specific market dynamics, as above, but hopefully it is a barometer for the coming months.
The levels of uncertainty in the market, as highlighted by reports coming out of the IOD, S&P UK Manufacturing PMI, and the ONS all of which are pessimistic and indicate a high degree of uncertainty resulting in: –
- Headcount expectations are falling.
- Investment intentions being scaled back
- Revenue expectations continuing to decline
- Wage expectations are continuing to rise
With the upcoming government budget on the 26th of November this has made it exceedingly difficult for members to plan for 2026, the uncertainty around labour legislation, minim wage levels, potential tax increases etc makes future planning particularly challenging. Members also felt that there really is not a clear industrial strategy from the UK government.
Despite all these challenges the overall feeling was that the UK connector would continue to grow in 2026 with the expectation that any growth will be in the low single digit area (3-5%).
