Consolidation leads to job losses
July 01st 2008 Up to 721 jobs could be lost as the UK Air Compressors industry consolidates over the
next 12 months, according to the 3rd edition 2008 Plimsoll Analysis.The unwelcome
news for the air compressor manufacturers coincides with the British Chamber of
Commerce survey which suggests unemployment could rise by up to 300,000 over the
next 12 months as the UK economy experiences a "prolonged and bumpy landing"
So just how will air compressors companies
be affected and how will they respond to
these challenging times? The latest Plimsoll
analysis of the UK's air compressors firms
sheds some light on to this issue. By providing an
individual analysis of each of the UK's leading 253
companies, it has assessed each company's chances
of survival and the steps each could take to charter
a path through these choppy times. The analysis
found that:
721 jobs could go as companies seek to get costs in
line with sales
As many as three quarters of the firms analysed will
need to reduce their head count
One of the largest firms could see up to 331 jobs lost
alone
More than a quarter of the companies surveyed are
already running at a loss
Companies need to aim for at least £140,000 sales per
employee in order to stay competitive.
Of the 253 firms individually assessed, 27 companies,
rated as in danger, need to
consolidate immediately:
these firms are all currently
losing money, are heavily in
debt and are exposed to
their lenders. They need to
take drastic action to shrink
their business otherwise
their survival is in question.
Some of these firms could
see 30% of the workforce go
as they try to stay in the
market.
107 companies need to only
'tweak' their business,
making small but simple
changes to their business will
see them maintain their
profitability and improve
their stability. Building up their strength is vital as they
aim to stay competitive.
119 companies are currently leading the market with
sales per employee figures of well over £190,000. These
super-productive firms are generating over £10,000
worth of profit per employee. These businesses are wellequipped
to see out the next 12 months in good shape
and are almost certain to prosper from their weaker
competitors' demise.
David Pattison, senior analyst, comments on the
challenges facing companies in the UK air compressors
market: "The 27 companies we have identified as in
danger need to act now if they are to survive. It is very
important they review their entire business cost base
and take action now to significantly reduce their
outgoings. Whilst job losses are undoubtedly bad news
for any company, such decisive action may be called for
to guarantee the ultimate survival of the business – even
if this means the business is 30 or 50% smaller than it
was."
The Plimsoll Analysis- Air Compressors clearly names
and identifies the companies most exposed to the
downturn, those in pole position to prosper and those
where the combination of poor
performance and slowing economy
has exposed them as a cheap
acquisition.
This special edition of the Plimsoll
Analysis exposes all the names,
details and financial performance of
the UK's 253 leading Air
Compressors firms. It also includes a
future snapshot on each company
demonstrating how each might
survive this period of consolidation.
It names those companies that are
set to gain the most and those that
need to retreat or sell up. Copies of
the analysis can be obtained for
£350, by emailing Clair Sherwood
c.sherwood@plimsoll.co.uk More articles from Plimsoll Publishing Ltd: | 
