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UK Audio Visual Equipment
industry - What’s in store for 2010?
January 4, 2010
Source: Plimsoll Publishing
Few would argue that 2009 was a difficult
year for the UK Audio Visual Equipment industry but early
signs suggest that conditions in 2010 will be much brighter.
According to new research by leading industry analysts Plimsoll,
the market is slowly emerging from the malaise of the last
2 years.
David Pattison, senior analysts and author of the 2010 Plimsoll
Analysis explains, “The recession tore through the market
in 08 and most 09 like a tornado and accelerated the rate
of change in the market. Aggressive “growth at all cost”
operators have been forced to abandon their reckless strategies
and many have been caught out and are in real trouble. However,
some amazing companies have come through the recession largely
unaffected and look set to make 2010 their year. As the market
continues to recover during the year the changes will continue
to come thick and fast”.
When pressed on what likely changes he envisages in the market
in 2010 he offers, “More job losses and consolidations
sadly. Even as the market improves there are a lot of companies,
large and small, that survived by the skin of their teeth
and they have to rebuild their profit margins and efficiencies.
He continues “Our latest analysis projects that a further
1,000 jobs will have to be shed if companies are to get back
to profit and remain competitive in 2010. Whether through
natural wastage or compulsory lay offs, job losses are necessary.
With the average sales per employee figure down to £184,000,
employees need to “buy in” and contribute more to
the recovery of their companies - if you still have a job
expect to work much harder in 2010. £430 million worth
of profit has been wiped from the market in the last year
and employers have no choice but to cut their cloth accordingly
and get more from their resources”.
As for mergers and acquisitions Pattison says, “In all
we named 133 companies in our latest analysis that are ripe
for takeover or merger with a larger parent. It’s a buyers
market in 2010 with many companies still recovering from the
recession. Our report has picked some great examples of companies
that are currently undervalued because of the recession that
would be very attractive to prospective owners. For many struggling
companies, a buy out may be the quickest route to get the
company back on an even keel – even if it means relinquishing
their independence. Inevitably, this will further increase
job losses as new owners would quickly look for efficiency
gains and to synergise their new acquisition with existing
operations”.
So, aside from a serious refocus of profitability and the
inevitable job cutting and takeovers, does Pattison see any
cheer in 2010? “There are some real good news stories
out there. We rated 264 companies as “Strong” in
our latest report. As expected this number is down compared
to previous years but these companies will lead the market
out of the downturn. They have managed to be commercially
successful without jeopardising their financial stability”.
The new Plimsoll Industry Analysis – Audio Visual Equipment
gives an instant performance rating on the top 675 companies
in the market. Each company has been rated as Strong, Good,
Mediocre, Caution or Danger according to their latest performance.
A graphical and written analysis will tell you which companies
are in trouble and who is getting it right.
Readers of Pro AV Buyers Guide are entitled to a £50
discount of this new special edition of the Plimsoll Industry
Analysis – Audio Visual Equipment. Call 01642 626400
for further details and quote reference PR/MI15.
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