AirUser 2008 96+4pp 24/7/08 11:32 Page 30
State of the market
Consolidation leads to
job losses
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”
o just how will air compressors companies 119 companies are currently leading the market with
S
be affected and how will they respond to sales per employee figures of well over £190,000. These
these challenging times? The latest Plimsoll super-productive firms are generating over £10,000
analysis of the UK’s air compressors firms worth of profit per employee. These businesses are well-
sheds some light on to this issue. By providing an equipped to see out the next 12 months in good shape
individual analysis of each of the UK’s leading 253 and are almost certain to prosper from their weaker
companies, it has assessed each company’s chances competitors’ demise.
of survival and the steps each could take to charter
a path through these choppy times. The analysis David Pattison, senior analyst, comments on the
found that: challenges facing companies in the UK air compressors
market: “The 27 companies we have identified as in
• 721 jobs could go as companies seek to get costs in danger need to act now if they are to survive. It is very
line with sales important they review their entire business cost base
• As many as three quarters of the firms analysed will and take action now to significantly reduce their
need to reduce their head count outgoings. Whilst job losses are undoubtedly bad news
• One of the largest firms could see up to 331 jobs lost for any company, such decisive action may be called for
alone to guarantee the ultimate survival of the business – even
• More than a quarter of the companies surveyed are if this means the business is 30 or 50% smaller than it
already running at a loss was.”
• Companies need to aim for at least £140,000 sales per
employee in order to stay competitive. The Plimsoll Analysis- Air Compressors clearly names
and identifies the companies most exposed to the
Of the 253 firms individually assessed, 27 companies, downturn, those in pole position to prosper and those
rated as in danger, need to where the combination of poor
consolidate immediately: performance and slowing economy
these firms are all currently has exposed them as a cheap
losing money, are heavily in acquisition.
debt and are exposed to
their lenders. They need to This special edition of the Plimsoll
take drastic action to shrink Analysis exposes all the names,
their business otherwise details and financial performance of
their survival is in question. the UK’s 253 leading Air
Some of these firms could Compressors firms. It also includes a
see 30% of the workforce go future snapshot on each company
as they try to stay in the demonstrating how each might
market. survive this period of consolidation.
It names those companies that are
107 companies need to only set to gain the most and those that
‘tweak’ their business, need to retreat or sell up. Copies of
making small but simple the analysis can be obtained for
changes to their business will £350, by emailing Clair Sherwood
see them maintain their c.sherwood@plimsoll.co.uk
profitability and improve
their stability. Building up their strength is vital as they
aim to stay competitive.
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