David Pattison

Many struggling UK forklift companies will finish the year in financial difficulty, according to Plimsoll's latest study.

David Pattison, author of the Plimsoll Industry Analysis, says an assessment of the top 466 forklift companies in the UK shows that 137 companies will end the year with financial problems.

"Sadly, some of them are just too weak to carry on and there will be a spike of failures in the New Year."

On the flipside, their demise will bring a "welcome reduction in competitive pressure" for those left, Pattison says.

Among the gloom and doom, there have been some outstanding performers.

Pattison says there is a group of 166 companies that prove success is achievable in the forklift industry despite difficult trading conditions.

"These companies will lead the industry out of recession with some smart acquisitions and maintain their recent success," he predicts.

He adds that the market is due for a prolonged period of consolidation. "With too many companies chasing weakened demand, it is inevitable that there are likely to be a number of high profile mergers and takeovers," he explains.

In the study, Pattison also identifies companies that continue to chase sales despite mounting losses.

"There are a group of 64 serial loss-makers still operating in the market. For the second and even third year running, [they] have made a loss. Whether they are blatantly chasing sales or just trying to maintain their marketshare, something has to give.

"The recession has put prudence back at the forefront of boardroom strategy, and these companies have to cut their cloth accordingly or face the consequences," he warns.

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