A recent analysis by Plimsoll examining the financial performance of the top 356 UK burglar and intruder alarm systems companies says 38% are losing the productivity race and will be unable to afford the 4.8% average wage increase estimated for next year.
According to Plimsoll, profit margins are at a record low with 21% of the industry already making losses. As a result, it says companies will not be able to afford the average salary rise from £22,775 to £23,875 next year.

In fact, Plimsoll says, the loss-making companies would be foolhardy if they took on any increase in salary costs at all.

The key issue for 38% of the industry is that they seem to be losing the productivity race because the amount of sales these companies generate per employee is £37,175. While the most productive companies generate almost three times this figure at £91,982 or around 45% of sales on salaries, for the unproductive, this figure rises to nearly 35% of sales.

Plimsoll's analysis also places 44% of the 356 companies in financial danger. This situation means these companies have severe financial constraints making extra costs simply unsustainable.

David Pattison, senior analyst at Plimsoll Publishing said: "The productivity race has started. In the USA, companies have got more productive by getting more sales and profit out of their existing employees simply to remain competitive. In the UK, companies must aim for at least £78,000 per person to even get in the race."

Source

Security Installer

Postscript

The Burglar and Intruder Alarm Systems Analysis is available from Plimsoll Publishing (for £305) on 01642 626400.