News

More than 11,000 jobs are under threat in the packaging materials sector in the next year, as firms seek to bring costs in line with sales, according to industrial research firm Plimsoll.

Plimsoll found that 75% of the 1,000 firms analysed could need to cut staff in the next 12 months and more than 250 firms were operating at a loss. It said that firms needed to aim for annual sales of "at least £133,000 per employee in order to stay competitive".

A fifth of firms "need to take drastic action" to consolidate their operation, while 340 firms needed to "tweak the business".

It found that 45% of firms were, however, "in good shape and almost certain to prosper from weaker competitors' demise".

David Pattison, senior analyst at Plimsoll, said: "While job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the survival of the business – even if this means it is 30% or 50% smaller than it was."

Do you agree with Plimsoll's findings? How do you see the next twelve months developing for the sector? Let us know your views below.