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Jobs in danger says industry report

publication date: Feb 16, 2010
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Industry analysts PlimsollMoving into 2010, although the outlook is brighter, prospects are you’ll have to work harder than ever to survive and prosper. Or at least that is what industry analysts Plimsoll, say in their new report, The Plimsoll Estate Agents Industry Report.

David Pattison, senior analyst 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.

However, some amazing companies have come through the recession largely unaffected and look set to make 2010 their year.” 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.”

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 good acquisitions.

“For 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.”