The changing faces of the metal treatments industry

Citation

(2001), "The changing faces of the metal treatments industry", Anti-Corrosion Methods and Materials, Vol. 48 No. 6. https://doi.org/10.1108/acmm.2001.12848faf.003

The changing faces of the metal treatments industry

The changing faces of the metal treatments industry

Keywords: Plimsoll, Metal treatments

Of the 2,500 UK directors of companies in the metal treatments industry, 9 per cent changed jobs last year. How do all of these different personalities affect the individual companies they are working for and shape the industry as a whole?

A new study analysing almost 1,000 companies and their directors in the metal treatments industry aims to reveal these personalities giving a unique insight into the characters running today's companies.

Mr Average

The study found that the average director in the metal treatments industry is 52 years old and has been in the job for over seven years. The average salary is £52,000 per annum. Looking beyond these averages a fascinating picture was revealed.

Old hats

The study revealed that despite this 9 per cent yearly turnover of directors almost 47 per cent or 1,174 directors have held their position for more than ten years. Of UK directors in the metal treatments industry 644 (or 26 per cent) are now over 60 years old. Over the next three to five years, as these bastions of the industry reach retirement age, there could be a profound effect on the companies they formerly controlled.

Marathon runners

If the industry is a victim of an ageing set of leaders there was no evidence that their company's performance was flagging. Of the 450 companies where these over 60 year olds work, almost 48 per cent are running successful companies. This compares favourably to the industry average of only 46 per cent.

Acquisition possibilities

What are the chances of a company selling up because the directors are getting long in the tooth? It is certainly a scenario that predators look for when scanning for prospects. Named in this study are 151 companies where every board member is over the age of 55.

For the headhunter

While there can be no one reason why a company achieves high sales growth, named in the analysis are 75 directors who since their appointment, have been able to increase sales year on year. For six directors, this is the third year their company's sales have increased.

Recently appointed

Of all companies in the UK metal treatments industry, 16 per cent have appointed directors within the last 24 months, representing almost 229 appointments. Almost 11 of these recently appointed directors have been recruited to 80 companies that are facing some sort of financial difficulty. For ten of these companies it represents a whole new board. These changes should be regarded as a new competitor and represent a fresh face for a company.

Young guns

As to the succession policies of companies in the metal treatments industry, 150 directors are under the age of 35 with 44 per cent of these working at successful companies. Of these "young guns", 58 have been appointed in the last 24 months. Are these entrants likely to form a successful future for the companies they are responsible for? Only time will tell.

In summary

The analysis aims to show that, arguably, it is not the companies that perform well but the directors that carry the most control over company performance. The individual performance of every UK Top 1,000 company in the industry is revealed in this latest publication as well as the contrasting profiles of the 2,500 UK directors in the metal treatments industry.

In a second report, Plimsoll informs us that one in every five French metal treatment companies is at high risk of failure. Many of these failing companies will struggle to settle payments with their overseas suppliers in the next six months. Plimsoll asks, just how do you spot whether your customers are financial losers and how can you turn this to your advantage?

For the first time Plimsoll has published an analysis of the 300 most important metal treatment companies in France. Monitoring four years of annual accounts, the analysis is both easy to use and effective at determining company financial health. Based on research conducted to discover the ingredients of company failure and the early warning signs visible in company accounts, the analysis can identify companies at high risk of failure up to two years prior to it occurring. The analysis also identifies the successful.

All of this gloom and doom does not mean the industry is in complete demise. Indeed, 211 companies are financially sound and would be ideal companies with whom to do business. This sound knowledge may avoid export ventures resulting in payment difficulties.

This analysis should simplify the task of targeting financially sound customers even in a business environment previously unknown to many UK managers. The French Plimsoll Portfolio Analysis: metal treatment cuts through the barriers of different accounting practices and language. The report layout is exactly the same as that used in the successful UK analyses. Written text is available in either English or French.

Details available from: Plimsoll Publishing Ltd. Tel: +44 (0)1642 257 809; Fax: +44 (0)1642 257806; E-mail: plimsoll@dial.pipex.com; Web site: www.plimsoll.co.uk