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You’ll have to work harder in 2010 – official

publication date: Jan 12, 2010
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Plimsoll ReportFew would argue that 2009 was a difficult year for the UK Estate Agency industry but early signs suggest that conditions in 2010 will be much brighter – but you’ll have to work harder than ever to survive and prosper. Or at least that is what industry analysts Plimsoll, say.

David Pattison, senior analysts and author of the 2010 Plimsoll Analysis explains, “The recession tore through the market in 08 and most 09 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. However, some amazing companies have come through the recession largely unaffected and look set to make 2010 their year. As the market continues to recover during the year the changes will continue to come thick and fast”.

However, when pressed on what likely changes he envisages in the market in 2010 he says, “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. Our latest analysis projects that a further 5,000 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. With the average sales per employee figure down to £56,000, employees need to “buy in” and contribute more to the recovery of their companies - if you still have a job expect to work much harder in 2010. £265 million worth of profit has been wiped from the market in the last year and employers have no choice but to cut their cloth accordingly and get more from their resources”.

As for mergers and acquisitions Pattison says, “In all we named 277 companies in our latest analysis that are ripe for takeover or merger with a larger parent. It’s a buyer’s market in 2010 with many companies still recovering from the recession. Our report has picked some great examples of companies that are currently undervalued because of the recession that would be very attractive to prospective owners. 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”.