David Pattison

The recession has cost the UK forklift industry GBP344 million (USD559.5 million) in lost profit in the last year, according to market analyst Plimsoll.

"The recession has hit the sector hard, with over half of the companies analysed making less profit than a year before," says senior analyst David Pattison.

Pattison explains the reason for the collapse in the companies' bottom line. "With demand so subdued and the resultant competition, many companies are unable to charge the price they need to make healthy profit margins."

However, the burden of lost profit is not being shared equally. Plimsoll's research shows that 257 companies have seen their profit margins decimated.

"Watch out for further job losses and closures as these companies look to claw themselves back to profit next year. If they fail to act quickly they could find themselves running out of cash," Pattison warns.

For the 61 companies that have maintained or increased their profit margins last year, some have made cut backs to match lower sales expectations while other grew their business in the recession.

"Those companies prove that an efficient business selling the right product to the right market can still succeed in the UK forklift industry," Pattison says.