According to the IABM, global sales turnover by manufacturers has declined by 7.2% in the last year, though Q4 2009 indictors show the decline was halted and Europe is recovering fast.
Almost half the companies (47%) in the IABM’s survey sample were loss making in this latest 12 month period, with some 29% of organisations moving from profit into loss.
Overall profitability has fallen by 12.5%, but the global profit to sales return remains at around 11%, reflecting again the structural changes that have taken place within organisations in order to maintain satisfactory shareholder returns.
IABM Director General, Peter White, said: “Although the worst appears to be over and a degree of optimism is discernible, 2010 is still shaping up to be a fairly lacklustre year. As we exit the year, however, we do expect to see better signs of market improvement with a more promising 2011 and 2012.”
The first three quarters of 2009 were very difficult for the industry but signs appear more positive at the end of the year. European based companies appear to be recovering faster than their North American counterparts.