David Pattison

The latest research from Plimsoll Publishing shows 50 of UK's largest forklift companies now control 89% of the market, intensifying the competition for market share.

Senior analyst David Pattison says the slowdown in the UK economy will only worsen the situation: "Following the last few years which have been largely profitable, business leaders have been keen to invest heavily, and in turn have borrowed heavily. Yet due to the turbulent economic climate of 2008, they are seeing very little by way of return."

As a result, Pattison says his research has identified 20 companies that are in severe financial danger because of a failing business strategy.

Of the 50 forklift companies surveyed, 18 are showing no sales increases, 13 are selling less than they were two years ago, 32 have failed to increase sales at the same rate as their investment and 28 increased their debts to hold their place in the market.

Pattison adds that companies need to rethink their business models to avoid "serious consequences".

"It's likely that jobs will be lost and key projects could be cancelled in an attempt to control the spending but for some companies it could well be a case of too little, too late," he says.

He suggests changes in management are beneficial as new managers can come in and instigate tough decisions. "The other obvious option is that some of these businesses will be sold off."

According to the study, the 50 companies controlled 85% of the market two years ago.

The 136-paged Plimsoll 50 Fork Lift Trucks Analysis offering a full industry overview and analysis of the companies is available for GBP500. Forkliftaction.com News has negotiated a GBP100 discount for readers who quote "PR05" on their order. Email c.sherwood@plimsoll.co.uk for your copy.