Gap widens between sick and healthy
August 10th 2009

A snapshot of how the air compressors market is changing as a result of the UK economic slowdown has been released by industry analyst Plimsoll Publishing.The findings suggest that the brunt of the slowdown is being felt by a fifth of the companies in the market. Surprisingly, almost half of those surveyed have been largely unaffected, maintaining their financial strength and margins, and some managing even to increase their sales

So how are air compressor companies coping with the recession? Extracts from the latest Plimsoll Analysis make interesting reading and show that it’s not all doom and gloom

Market direction

Overall the market is showing no overall growth, compared to growth of almost 7% this time last year.

However there is much changing among the players in the market as they jostle for precious sales, highlighted by the huge gap in performance.

• 64 firms have seen their sales decline, some by as much as 20%

• 111 firms have seen their sales increase, some by as much as 15%

David Pattison, senior analyst at Plimsoll, explains the reasons behind the changing market. “The recession seems to have accelerated a shift in the market. Some companies have clearly been affected by those that have swapped to low cost alternatives or by the loss of a key client. Others are clearly benefiting from this move.”

Profitability

Overall profitability is slim, with most companies reporting profits of less than 2%. This is largely in line with last years figures as the early signs of recession were already taking an effect. However the gap between the very profitable and those missing out is widening.

• 122 firms have seen their profits fall, with one in four currently losing money

• 125 firms have increased profitability, some reporting margins of over 6%

David Pattison believes this to be down to a number of factors.

“The recession has been a good thing for a number of companies, it has sharpened their management and improved the accountability of the directors, so much so that these reorganisations are already leading to an increase in profitability. However for those that have yet to come to terms with this changing market, times are tough and they risk falling further behind the successful competition unless they respond to this changing market.”

The Plimsoll Analysis – Air Compressors analysed the UK’s Top 247 air compressors firms, based on their latest financial performance.

Copies of the complete analysis the Plimsoll Analysis –Air Compressors are available to order by calling Clair Sherwood- Parkin on 01642 626422.

A PDF version of the report is priced £350+VAT and readers can claim a 10% discount.

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