Forklift companies in danger from recession

News Story
- 22 Jan 2009 ( #394 ) - London, United Kingdom
1 min read
A report by a British market analyst warns that over a quarter of the UK's leading forklift firms are in "financial danger".

The 2009 Edition of the Plimsoll Analysis - Fork Lift Trucks analyses the top UK forklift companies, rating each on its attractiveness as an acquisition.

David Pattison, senior analyst at Plimsoll, says recessions catch bad businesses out. "The companies that entered this period ill-prepared have placed themselves at a distinct disadvantage," he explains. "Many have grown used to running their businesses on high-risk business models, propped up largely on finance."

"The reality is, for many of the 118 businesses in danger, their problems go back years, certainly long before the current UK slowdown," he claims. "Yet they have failed to fix their problems.

"It is clear that many of the 118 businesses are fundamentally poor, aggressive or disruptive and are unhelpful to the market."

Pattison says with the new prudent banking systems that are in place, companies will not be able to "paper over the cracks" with quick finance.

He warns that the UK forklift sector is over capacity, with 20% of businesses suffering from a fall in sales last year. "With competitive pressure, many may see sales fall by 8%," he comments.

Pattison predicts not all the major forklift businesses will survive. "Of those who do, very few will be in their current shape and many will be in the hands of new owners.

"This further supports the argument that despite the obvious tragedy of job losses, livelihoods lost and the pain of a business in decline, this period is inevitable and can only be good news for the market in the long run."
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Previously about:
UK forklift sector increases value News Story - 25 Jan 2018 - Stockton on Tees, United Kingdom - 1 min read
Small UK companies in difficulty, study says News Story - 17 Jun 2010 - Stockton, United Kingdom - 1 min read
Recession cost UK forklift industry GBP344M News Story - 17 Dec 2009 - Stockton, United Kingdom - 1 min read
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