Report says more job losses and consolidations likely in av market

David Pattison, senior analysts and author of the 2010 Plimsoll Analysis explains, ‘The recession tore through the market in 2008 and most 2009 like a tornado and accelerated the rate of change in the market. Aggressive “growth at all cost” operators have been forced to abandon their reckless strategies and many have been caught out and are in real trouble.’
 
When pressed on what likely changes he envisages in the market in 2010 he offers, ‘More job losses and consolidations sadly. Even as the market improves there are a lot of companies, large and small, that survived by the skin of their teeth and they have to rebuild their profit margins and efficiencies.’
 
He continues ‘Our latest analysis projects that a further 1,000 jobs will have to be shed if companies are to get back to profit and remain competitive in 2010. Whether through natural wastage or compulsory lay offs, job losses are necessary.’

As for mergers and acquisitions Pattison says, ‘In all we named 133 companies in our latest analysis that are ripe for takeover or merger with a larger parent. It’s a buyers market in 2010 with many companies still recovering from the recession. For many struggling companies, a buy out may be the quickest route to get the company back on an even keel – even if it means relinquishing their independence. Inevitably, this will further increase job losses as new owners would quickly look for efficiency gains and to synergise their new acquisition with existing operations.’

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