Good news is that 457 (30%) of 1500 UK fabricators scored a 'Strong' rating in a recent survey; and proved that metal fabricators can deliver credible financial results, while 9% are in 'Danger'.
Nobody ever thinks they will be responsible for a failing company. However, it is a harsh reality of business that some of you reading this are working at, or will know of, a company that is heading for failure. In fact a recent study into the UK's Top 1500 metal fabricators businesses suggests that up to 142 - 9% of the companies in the industry - are at a high risk of financial collapse.
The financial performance of each company has been researched and the full study includes an individual analysis and overall financial score for all 1500 entries.
It names 142 companies rated as 'Danger'.
They are suffering from low and declining margins and uncontrolled rising debts.
Their position is now so serious that even normal business decisions are becoming constrained.
David Pattison, senior analyst on the project, maintained: 'The simple message is change or risk failure.
At these high risk companies, the managers need to act quickly to get their firms back on a decent financial footing.
It seems inevitable that we will see a period of consolidation.
Job losses and certainly cost cutting are essential if these companies are to survive.
Personally, I would not rule out a series of takeovers.
Most of these companies are blissfully unaware of how exposed to acquisition they are.' The analysis is aimed at the non-financial manager who needs to be alerted to changes in the financial performance of Metal Fabricators companies, whether they are customers, competitors or suppliers.
If your business relies on their business, it is vital you understand their financial position.
* The full 1800 paged study, priced at GBP 350, is a comprehensive guide to the financial health of each of the 1500 companies.
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