A recent report on the office supplies industry suggests contrasting fortunes for firms trying to survive economic hardship. According to the 2011 Plimsoll Analysis, while a third of companies remains ‘strong’, a quarter is in ‘danger’, struggling to keep afloat.
Plimsoll analysis rated office supplies companies as either ‘strong’, ‘good’, ‘mediocre’, ‘caution’ or ‘danger’.
Said David Pattison, author of the report, “Now that the storm is lifting we have been able to assess the damage left behind. Two hundred and fifteen companies are in parlous state and starting the New Year clinging on for dear life. We have rated them as ‘danger’ accordingly.
“Falling demand was the final nail in the coffin for many. The mistake they made though was to not make those painful cuts early enough to protect their business.”
Among the predictions for the coming year, are the need to identify growth areas, especially as credit remains turgid, and the vulnerability of the ‘danger’ companies and even their unattractiveness as acquisitions.
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