However, surprisingly, almost half of those surveyed have been largely unaffected, maintaining their financial strength, margins and some managing to even increase sales.
Overall the market is said to be showing no growth, compared to growth of almost 7% this time last year. However, 229 firms reported that they have seen their sales decline, some by as much as 13%. 477 firms have seen their sales increase, some by as much as 15%.
David Pattison, senior analyst at Plimsoll, explained: “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.”
Overall profitability is said to be slim, with most companies reporting profits of less than 2%. This is largely in line with last year’s figures as the early signs of recession were already taking an effect. However the gap between the very profitable and those missing out is reportedly widening: 503 firms have seen their profits fall, with one in four currently losing money. Another 497 firms have increased profitability, some reporting margins of over 5%. (Tyres & Accessories/Staffordshire, U.K.)
