A survey conducted on the top 930 companies associated with the UK leather industry through to retail, by Plimsoll Publishing Ltd., has shown a certain difference of opinion between companies as to the outlook for the industry in 2005. However, the majority of firms are opting for the cautious approach to the future.

In the survey 32% of the companies questioned said that they were uncertain how 2005 would be. This comes as no great surprise when sales in the industry have fallen 3% and margins average at 3.5%.

29% of those surveyed claimed to feel under pressure due to ever increasing competition in the market. These were the companies that have reported the largest declines in sales in 2004, some losing up to 16%. These companies will focus on retaining current sales levels, controlling costs, and reducing debts in 2005.

In contrast to the firms feeling the pressure, 21% of UK companies appeared to be determined to continue with their current strategy of aggressively pursuing market share. These are more than the likely the very companies that are causing pressure felt by 29% of those surveyed, as although employment has increased at these companies, most of them are running at a loss.

On a more upbeat note, 19% of UK-based companies in the leather chain feel positive about their prospects in 2005. These companies have achieved increased sales – some by up to 10.1% - without reducing margins. The only concern these firms have is keeping the competition at bay.

 

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