Report identifies select few getting all growth

Study by industry analysts has identified 298 emerging UK metal fabricators have increased sales by a minimum of 23% and are taking more control of the market in 2006.

A new study by industry analysts Plimsoll Publishing has identified a group of 298 emerging Metal Fabricators companies.

In the last year these succeeding companies have increased sales by a minimum of 23% and are taking more control of the market as we start 2006.

Over the last two years, growth in the market has been sporadic, averaging only 5.9% two years ago and 11.4% last year.

Yet last year, a group of 298 companies emerged increasing sales at twice the average of the rest, averaging a 47% growth.

'Growth' companies - 'Affected' companies - Rest of Industry - number of companies (respectively): * 298 - 271 - 431-1000.

Average growth (respectively) * 47% - -17.2% - 10.5% - 11.4%.

Of the 1000 companies analysed in the research, 271 were found to be suffering the consequences of these high growth companies.

Collectively these companies saw sales fall by -17.2% in the same period.

According to David Pattison, senior analyst on the project, "This is absolute evidence of how most of the growth in the market is going to a select group of companies.

So what have these companies been doing to create this growth? Pattison maintains: "For me it is evidence that the market is changing as the revenue and growth streams of even five years ago are not same as for 2006.

Frankly it is the one question that we all want to know the answer to; sadly there is no 'magic bullet'.

These 298 winning companies seem to know some of the answers and they are telling us all something about the future direction of the market.

However, there is strong evidence that this is not simply a case of the larger companies forcing the smaller companies out of the market.

There is growth amongst these smaller companies, although it clearly has less effect on the overall market.

Turnover of company in GBP 1000s 'Growth' companies and 'Affected' companies: * 500: 29 and 66.

* 1000: 33 and 43.

* 3000: 90 and 91.

* 5000: 57 and 27.

* 10,000: 43 and 13.

* 50, 000: 37 and 22.

* Over 50 million: 9 and 9.

Total: 298 and 271.

Of the smaller companies with sales of less than GBP 3 million: * Average growth was 6.1% compared to the industry overall average 11.4%.

* 58% delivered an increase in sales.

* 150 companies increased sales by an average of 30%.

Pattison continues, "There does seem to be a buoyant market amongst the smaller companies but the competition is more focused.

Companies tend to be less concerned with the overall market and more concerned with their immediate competitors.

However, the analysis contains a note of caution is for the smaller companies.

Of the smaller companies who suffered a decline in sales, the average decline was -18.6%.

This suggests that if sales do decline at a smaller company, the effect can be severe.

The publication contains a full financial analysis of each of the Top 1000 UK Metal Fabricators companies, big and small.

Their full financial performance over the last four years is presented in the publication.

The analysis is designed for the busy manager who needs to spot trends in the overall market and identify and understand threatening competitors.

For those looking for quick growth, the analysis can also be used to seek out acquisition prospects.

Copies of the full 1260 paged analysis are available from Plimsoll Publishing priced at GBP 305.

Readers of this publication will receive a 5% discount when ordering.

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