David Pattison

The UK forklift market is showing no overall growth compared to growth of almost 7% at this time last year, a Plimsoll study says.

Plimsoll Publishing has just released a study which it claims is "the first snapshot of how the forklift market is changing due to the UK economic slowdown". It surveyed the UK's top 483 forklift companies, based on their latest financial performance.

The study found the economic slowdown is impacting over a quarter of UK's forklift companies. Meanwhile, about a third of those surveyed have been "largely unaffected", maintaining their margins with some even increasing sales.

There is a gap between the companies' performance: 103 have had their sales decline, some by about 16%, while 225 companies have seen sales increase, some by about 15%.

Plimsoll senior analyst David Pattison says the recession "seems to have accelerated a shift in the market".

"Some companies have clearly been affected by those that have swapped to low-cost alternatives or by the loss of a key client. Others are clearly benefiting from this move," Pattison says.

According to the study, overall profitability is slim, with most companies reporting profits of less than 2%.

A total of 241 companies have seen their profits declining, with one in four currently losing money, while 242 companies have increased profits and some report margins of over 5%.

"The recession has been a good thing for a number of companies. It has sharpened their management and improved the accountability of the directors, so much so that these reorganisations are already leading to an increase in profitability," Pattison adds.

Neville Bowman-Shaw, chairman of Samuk HC, says in the company's newsletter that new forklift orders placed by UK dealers and national accounts in January 2009 had fallen to 50% of the volume in January 2008. By April 2009, the orders had increased to 55% of the orders placed at the same time last year.

But the good news, Bowman-Shaw says, is that "all of us can expect a profitable rocky climb back to the 2008 level over two or three years, depending on the success of the worldwide financial activities of many governments".

The Plimsoll study, priced at GBP350 (USD570.85) + VAT, is available by calling Clair Sherwood-Parkin on +44 1642 626 422. Forkliftaction.com News readers can quote this article to get a 10% discount.