One In Three Make A Loss
According to the latest report from Plimsoll, 1 in 3 companies in the window and door industry in the UK are making a loss. Plimsoll assess 1000 companies to compile it’s report, with results saying the 328 are making a loss.
Though the report does point out that a lot of those 328 companies making a loss, are doing so for the first time. On the flip side, they also point out that 184 companies are making a loss for more than the first time, on some occasions three years in a row.
David Pattison, author of a new market report into company performance in the market said: “More and more companies are making a loss for the first time in their history. Many can rightly claim to be victims of difficult trading conditions. A quick refocus on profitability would ensure this an isolated occurrence.”
When the recession first started, the industry was urged to make the hard decisions now. Cut staff, freeze or cut wages, cut hours, diversify etc etc. The earlier they were done, they less likely they were to struggle in the future. However many were reluctant to do so and are now suffering, and in a double-dip recession is going to make trading even more difficult.
Indeed, things are clearly still tough in the industry. I was informed today that a company local to us, Composite Windows Direct had gone into liquidation, leaving yet more employees in the industry without a job. Hopefully they will find new employment soon.
Worse Than Thought
Office for National Statistics (ONS) figures out today revealed that GDP in the last quarter actually fell 0.4% instead of the initial estimate of 0.3%. They also predict the the second quarter of this year will show a further reduction, partly due to the extra bank holidays in June for the Queen’s Diamond Jubliee and partly due to the dire construction figures that have been reeled off month after month.
As each quarter passes the Bank of England’s predictions for growth this year get lower and lower. At the minute I think the current prediction for the economy this year stand at around the 1% mark, if my mind serves me correctly. Personally, while construction and output figures are so low and while the Euro crisis continues without a proper plan and solution, I can’t see any growth this year. 2012 will be a full year of recession I think.
All that said, the window industry continues to be determined and bolshy in the face of a dire economy, corrupt banks making credit lines difficult and very little help from the Government in terms of low VAT rate for energy efficient windows.
You can find a report on the Plimsoll market research here: http://ggpmag.com/newsitem.asp?newsID=1395
Sad news about CWD what about the poor creditors who might have been stiffed.
There is actually no incentive to run an honest company with the current insolvency laws .
You only have to look another company local yourselves in a CVA FOR £1.3 million.
A company i used to work for busted and phoenixed 3 times.
Now in my 5th year of trading in the north west and making decent money. I will never get rich but I tr y to be honest