IMPROVEMENTS FOR THE INDUSTRY
Companies in the labels industry are benefiting from a £6,260 sales per employee increase in productivity according to the latest edition of Plimsoll Publishing’s analysis of the industry.
The industry average productivity was found to be performing better than UK industry in general for which the average productivity figure for 1996 year end was £50,240.
Examining the industry more closely it seems that the larger companies are leading the way. Companies with sales in excess of £18 million reported productivity figures of £85,710 sales per employee whilst the smallest companies, those with sales less than £2 million, could only manage an average £52,670 sales per employee.
Gains, it seems, may have been made through companies rationalising their business. The average number of employees per company twelve months ago was 72 compared to 70 in this latest analysis, but improved pay may also alter the equation. Employee remuneration on average for the industry was £18,570 compared to £18,200 a year ago. Larger companies were seen to be paying more and giving bigger rises, average remuneration amongst the large companies was up to £22,100 from £20,830, the small companies average remuneration increased to £13,680 from £12,700 a year ago.
Growing sales may also have contributed to these gains, the industry as a whole saw an average increase in sales of 9.8 per cent, compared to 8.8 per cent a year ago.
This time the smallest companies were setting the pace. They achieved an average sales increase of 12.9 per cent in comparison to the largest companies who managed only a ten per cent increase in sales.
The Plimsoll Portfolio Analysis – Labels, first edition 1997, includes individual analysis of some 528 companies involved in the industry.