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Plimsoll: 44% of bodyshops will be unable to fund 3.5% wage increase

“A staggering 44% of the UK motor vehicle repair industry will be unable to afford the 3.5% average wage increase estimated for next year”, according to the latest Plimsoll analysis examining the financial performance of the top 1,000 UK motor vehicle repairs companies.

Plimsoll, a financial ratio reporting firm that obtains data from registered companies' accounts, says the average salary in the body repair sector is set to rise next year next year from £19,786 to £20,469. Plimsoll has concluded that with profit margins at a record low and with 25% of the industry already loss making, “many of the industry's top 1,000 companies simply cannot afford this extra cost”.

Plimsoll says 44% of the companies whose latest accounts it has surveyed generate sales of £161,215 per employee. The most productive companies generate 40% more than this figure at £226,247.

Plimsoll also concluded that 48% of the 1,000 companies surveyed are in financial danger - severe financial constraints making extra costs simply unsustainable.

David Pattison, Senior Analysis at Plimsoll Publishing said, “The productivity race has started. You only have to look at the USA where any increased sales have not lead to extra jobs. Companies have just got more productive by getting more sales and profit out of their existing employees simply to remain competitive. In the UK, companies must be aiming for at least £192,000 per person to even get in the race.”

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