Plimsoll: Rich/Poor Divide Widening in UK Tyre Market

Industry analysts Plimsoll Publishing are suggesting that the brunt of the slowdown is being felt by a fifth of the companies in the UK tyre market. However surprisingly, almost half of those surveyed have been largely unaffected, maintaining their financial strength, margins and some managing to even increase sales.

Overall the market is said to be showing no growth, compared to growth of almost 7 per cent this time last year. However, 229 firms reported that they have seen their sales decline, some by as much as 13 per cent. 477 firms have seen their sales increase, some by as much as 15 per cent.

David Pattison, senior analyst at Plimsoll, explained: “The recession seems to have accelerated a shift in the market. Some companies have clearly been affected by those that have swapped to low cost alternatives or by the loss of a key client. Others are clearly benefiting from this move.”

Overall profitability is said to be slim, with most companies reporting profits of less than 2 per cent. This is largely in line with last year’s figures as the early signs of recession were already taking an effect. However the gap between the very profitable and those missing out is reportedly widening: 503 firms have seen their profits fall, with one in four currently losing money. Another 497 firms have increased profitability, some reporting margins of over 5 per cent.

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