The 2003 Plimsoll Portfolio Analysis: Electrical Contractors splits the electrical contracting industry into three – raiders, holding and falling companies – in an alarming report that suggests that a large number of companies, some 292 to be exact, are at risk of simply 'withering away' due to not being able to attract new business or even to hold on to established clients.
Conversely, 243 companies have been identified as raiders. These firms grew by an average of 40% in the last year, some five times the industry norm, capturing 8% of the market.
Plimsoll has identified the 'falling' companies as those most likely to lose out on work to the raiders but it also warns that companies currently in the holding category are also at risk. These 242 holding firms, although not losing work at the moment, are likely to struggle to hold on to existing clients. "They are standing still and missing opportunities," says David Pattison, senior analyst. "The raiders are showing that there is a buoyant market out there for those who know where to look."
However, aggressive acquisition of work is not without risk. The report identifies 69 of the 243 raider companies as those having made significant sacrifices to maintain their market share. These 69 are currently trading at high financial risk with debts funding growth.
With enviable market shares these companies are the ones that strong market leaders will watch and jump at the chance to purchase if they get into financial trouble.
For a copy of the report analysing the top 2000 companies, call Plimsoll Publishing on 01642 626400. Readers can claim a 5% discount by mentioning this article.
Source
Electrical and Mechanical Contractor
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