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The recycling market will face a tough 2008

The recycling market will face tough times ahead in the year 2008 and some companies will need to cut costs if they are to have a happy New Year, according to a new study. Business analysts Plimsoll Publishing did a general report looking into the recycling market in the UK, ranging from paper recyclers to metal recyclers. The report named Plimsoll analysis -recycling found that some recycling companies would have to cut their costs in order to improve their margins. Plimsoll used assessments from the last financial year 2006-07 to make its 2008 predictions. Senior analyst David Pattison said: The average growth in the recycling sector in 2007 has been 13.4%. But this growth was by no means universal. A total of 23% of companies actually saw their sales decline. With pressure on sales certain to come, some companies will need to cut costs in 2008. Sadly, for most the term cost cutting translates into job losses. Pattison advises recycling companies to reduce their costs as part of a long-term strategy plan but not to be too hasty. He claims that 2007 was not a bad year overall for the industry with margins averaging 4.5%. So which companies will have an unhappy new year? Anyone who is already finding it a struggle is likely to experience even tougher times unless immediate measures are taken to reduce costs and improve margins. Any company with escalating debts will certainly find it difficult to stay competitive, and even in some cases to survive. If your company falls into this category, the warning lights should already be on. But those who take steps to streamline their business model or who supply a particular demand can expect to emerge in a relatively healthy position. Image: Plimsoll's senior analyst David Pattison

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