Water treatment industry struggling to stay afloat
New figures published earlier this month show hundreds of water treatment companies are still struggling financially, despite the country's recent economic growth.
Compiled by business analysts Plimsoll, a review of the water treatment industry shows that out of over 750 businesses, 226 have lost more than a third of their value during the last year.
The report goes on to state that with 33 companies recording a loss for the second consecutive year, not all are expected to survive.
Author of the report, David Pattison, labelled many in the water treatment industry as being in ‘dire straits’, saying that the losses seen were ‘the clearest indication yet of the damage the recession has wreaked on the market’.
He added: “The post recession market is so highly competitive, I would expect a number of these companies to be bought out or decline further and eventually be wound up.”
Plimsoll believe there is, however, reason from cautious optimism; with a further 331 water treatment companies recorded as increasing their value.
“It’s certainly been a tough few years,” said Mr Pattison. “Values have fallen markedly from their peak but the number of companies that are worth more this year than last is encouraging.
“In all we identified 331 companies that have increased in value – quite an achievement considering current market conditions. Their performance adds to the growing belief that the market has stabilised and companies with their house in order can once again prosper and add value.”