Up to 5,965 jobs could be lost as the UK paper and board industry consolidates over the next 12 months, according to the third edition 2008 Plimsoll Analysis. The bad news coincides with the British Chamber of Commerce survey which suggests unemployment could rise by up to 300,000 over the next 12 months as the UK economy experiences a “prolonged and bumpy landing”.
By providing an individual analysis of each of the UK’s leading 600 companies, Plimsoll has assessed each firm’s chances of survival. The analysis found that: 5,965 jobs could go as companies seek to get costs in line with sales; as many as three quarters of the firms analysed will need to reduced their head count; one of the largest firms could see up to 844 jobs lost alone; almost a quarter of the companies surveyed are already running at a loss; and companies need to aim for at least £167,000 sales per employee in order to stay competitive.
Senior analyst David Pattison comments: “The 120 companies we have identified as in danger need to act now if they are to survive. It very important they review their entire business cost base and take action now to significantly reduce their out-goings. Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business- even if this means the business is 30 or 50 per cent smaller than it was.”
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