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."
US equipment finance industry confidence at three-year high
US equipment finance industry confidence at three-year high 28 Nov 2024 - Washington, DC, United States - 1 min read
LiuGong adds PEAC financing
LiuGong adds PEAC financing 22 Aug 2024 - Mount Laurel, NJ, United States - 1 min read
Briefs
Briefs 15 Jun 2023 - 2 min read
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
Do you have materials handling news? Submit your news here

“Over the years, your platform has played a key role in expanding our global presence — connecting us with industry professionals and promoting our advanced products, including our 50T electric forklift...Forkliftaction has helped us stay informed and competitive in a rapidly evolving market…”  - Bill Cai, Director, Overseas Division, Fujian Southchina Heavy Machinery Manufacture Co., Ltd

Thanks for your support! Read the full testimonial & more industry messages ♥ here.

Words of support …

I know I can count on them. They give valuable suggestions on the campaign planning, and to publish content is as easy as abc, as they take care of the material layout and check links. This is a great support.

Annalisa Castellini, Marketing Manager

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

“Over the years, your platform has played a key role in expanding our global presence — connecting us with industry professionals and promoting our advanced products, including our 50T electric forklift...Forkliftaction has helped us stay informed and competitive in a rapidly evolving market…”  - Bill Cai, Director, Overseas Division, Fujian Southchina Heavy Machinery Manufacture Co., Ltd

Thanks for your support! Read the full testimonial & more industry messages ♥ here.

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

“Over the years, your platform has played a key role in expanding our global presence — connecting us with industry professionals and promoting our advanced products, including our 50T electric forklift...Forkliftaction has helped us stay informed and competitive in a rapidly evolving market…”  - Bill Cai, Director, Overseas Division, Fujian Southchina Heavy Machinery Manufacture Co., Ltd

Thanks for your support! Read the full testimonial & more industry messages ♥ here.