According to new research by industry analyst Plimsoll, the fire protection market is split between those running their businesses correctly and those struggling to recover from recession.
David Pattison, senior analyst and author of the 2011 Plimsoll Analysis said: "Now that the storm is lifting we have been able to assess the damage left behind. One hundred and nine companies are in parlous state, and starting the New Year clinging on for dear life. We have rated them as 'Danger' accordingly. Falling demand was the final nail in the coffin for many. The mistake they made though was to not make those painful cuts early enough to protect their business."
However, the green shoots are now well entrenched, with the number of companies rated as Strong rising to 401. Pattison explains: "We rated these companies as 'Strong' in our latest report and I have to congratulate them. In fact, many of them retained a Strong rating throughout the recession. They have managed to be commercially successful without jeopardising their financial stability. While others fail around them, they are in pole position to capitalise in 2011."
According to David Pattison, key areas to focus on this year will be getting back to growth and identifying areas where this growth might take place. He also suggests that the profiles of companies will shift in parallel with mergers and acquisitions that are taking place.
Posted January 10 2010