Decisive action needed in forklift truck industry

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Almost 2,500 jobs could be at risk in the UK forklift truck industry over the next 12 months, according to the latest edition of Plimsoll Portfolio Analysis – Fork Lift Trucks.

The report found that three quarters of the 486 companies analysed will need to reduce their head count in order to get costs in line with sales, with almost a quarter already running at a loss.

Of the firms assessed, 113 were found to be in immediate danger and in need of consolidating at once. It was suggested that 205 needed to “tweak” their business in order to maintain profitability and improve stability. While 168 companies were said to be leading the market by generating more than £7,000 worth of profit per employee.

David Pattison, senior analyst at Plimsoll, said: “It is very important companies review their entire business cost base and take action now to significantly reduce their outgoings.

“While job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business – even if this means the business is 30 or 50 per cent smaller than it was.”

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