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Third of parts makers on report danger list

More than a third of the UK’s top vehicles parts and accessories companies face collapse or consolidation, according to a new industry study.

Plimsoll Publishing’s senior analyst David Pattison claims the larger firms are having to fight each other for business, leaving the smaller companies to prosper. And he believes there is clear evidence of stagnation at the top of the market.

“Forty-six of the top 95 companies in the parts and accessories sector failed to increase sales above inflation compared with last year,” he says.

“With many also experiencing rising costs, their future direction now looks uncertain.”

Pattison adds that 30 of the leading firms did not make a profit last year and that, despite their size, they were less profitable than the smaller market players. Only 13 of the industry’s top 100 companies have shown profit growth in three consecutive years and 22 have not made any profit over the same period, the Plimsoll report claims.

“The top end is heavily congested, with no room for any of the major companies to breath,” says Pattison. “In other markets where this has been the case there has been a series of major acquisitions to clear the air.

“I predict we might see at least two of the UK’s top 95 motor parts and accessories firms having to merge or be taken over. In fact, it’s so likely, we have put 35 on the danger list.”

The full analysis, with a financial healthcheck of each of the companies listed in the report, is available from Plimsoll Publishing on 01642 626400. It costs £500, although there is a 5% discount for AM readers.

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