Increased Competition Predicted For UK Leather Industry
A report from Plimsoll Publishing warns of tough times ahead for the UK Leather industry. The 'Profit Predictor Edition 2001: Leather' is a 12-month future predictor and an individual performance analysis of the top 960 companies in the UK leather industry.
The report found that growth over the next 12 months will be nil or 0%. This apparently benign statistic masks the fact that only 40% of those measured will experience stagnant sales. Against this 21% should see sales increase while 39% can expect a decline.
Despite the gloomy picture painted by the annual publication, the report includes a series of different management strategies to anticipate how a company could improve profitability over the next 12 months. According to Plimsoll, those that are expecting a reduction in sales should consolidate, adopting emergency cost-cutting measures. Those that are stagnant need to look at non-essentials and increasing margins, while expanding firms should be looking to exploit their position with increased sales.
Don Turkington, Managing Director of Plimsoll, said: "As competition intensifies, profitability will be the key. Companies must get a better grasp of their costs to improve profits."
