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According to market analysts Plimsoll and its new report on conditions in the industry, smaller companies have not had the same facilities to ride out the recession as well as their larger counterparts.
David Pattison, author of the Plimsoll Analysis – Aerospace explained: “While large companies have relied on their size, brands and better access to cash, smaller companies have been left high and dry.”
He continued: “We have given 58 small companies a Danger rating. While conditions have improved of late, I fear a high proportion will fail. Whereas large companies can call on banks and parent companies or cut out loss making parts of their operations, smaller companies are increasingly running out of cash.”
Pattison also pointed out how small companies are struggling to maintain their market share and being squeezed out of the market: “103 small companies are selling less than last year. Clearly they have seen demand for their products dip or worse still, a new competitor has emerged. With their finances already stretched, they have little left in their arsenal to fight back.”
So what next for these small companies? Pattison said: “There are clearly too many small companies chasing too little market. The inevitable consequence is another round of consolidation with large competitors buying small companies at a discount. Of the 315 companies with assets of less than £3million, we have identified 111 companies as being vulnerable to takeover.”
The new Plimsoll Industry Analysis – Aerospace will tell you instantly which companies are prospering in the post recession market place, those taking a big gamble and those heading for trouble. It gives an instant performance rating on 801 companies and highlights those ripe for acquisition. Each company is assessed using the Plimsoll Model - A graphical and written analysis that lays bare the facts and gives you instant opinion.
Readers of Aerospace Manufacturing are entitled to a £50 discount of this new special edition of the Plimsoll Industry Analysis – Aerospace. Call 01642 626400 for further details and quote reference PR/EG05.
www.plimsoll.co.uk
