One in nine UK label companies ‘heading for rocky ground’

Plimsoll’s latest study into the UK label industry, which was recently updated for September 2012, reports that ‘142 companies are risking their long-term sustainability in order to increase sales’.

Yet while sales have seen an upsurge, the 142 companies continuing with their current business model are in danger of spiraling out of control and are heading for rocky ground, says the study. 

The new Plimsoll report, which analyses the top 415 businesses in the sector, says that while the majority of the organizations are making solid and informed decisions, there are some firms that need to think about their goals.

David Pattison, author of the new market report, insists companies need to be wary of their actions. ‘Of course it’s exciting to see these companies increase their market share and invigorate the market, but if their financial health continues to decline then all these extra sales will count for nothing.

‘In a market that displays modest growth, it’s evident that these businesses are impacting on the rest. Of the other 858 companies analyzed in the report, just over a thirty percent have seen their sales dramatically decline. Due to the 142 companies surging ahead, the others in the industry are facing the consequences.’                                                                                         

Presented in a one-page per company format, the report summarizes the strengths and weaknesses of each business, as well as informing directors about acquisition prospects.

Readers of Labels & Labeling are entitled to a GBP £50 discount of this new edition of the Plimsoll Analysis – Labels. Call +44 1642 626 400 for further details and quote reference PR/PI25. 

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