Tough times ahead?

 
 

Tough times ahead?

24 Dec 2006

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2007 forecast

Tough times have been forecast for the motor vehicle repair industry during 2007, by Plimsoll Publishing’s senior analyst, David Pattison. Whilst growth was a healthy 5% during 2006, a third of the 500 companies that Plimsoll monitored saw a fall in sales. This indicates that much of the growth is being shared by a select few firms. Mr Pattison predicts slightly reduced growth of around 4% combined with a squeeze on margins, with around a third of companies in the sector losing money. Salaries have risen by around 2% over the last 12 months and the average is now £22,600. This has largely been productivity driven, says Mr Pattison, with sales per employee increasing from £97,100 to £117,000. Despite this, a wave of job losses is on the horizon, forced by modest growth combined with rising costs and, ironically, even better productivity. “I would not be surprised to see as many as 1,800 jobs being cut,” adds Mr Pattison. The Plimsoll report includes a list of five companies who are ripe for takeover and an individual analysis of each of the 500 companies in the sector. Copies are available from http://www.plimsoll.co.uk/ or by telephoning 01642 626 400 and quoting reference PR12/Aftermarket. Readers of Aftermarket will receive a discount of £50 on the usual price of £350 per copy.

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