One in five electronics manufacturers in danger says Plimsoll

The company says that a combination of high debts, scarce credit and increased competition has pushed the electronics outfits close to the edge. However, the report suggests that their demise is overdue "and, in many ways, necessary if the market is to recover quickly". Plimsoll also says that 133 firms in its sector analysis continue to sell their products at a loss adding congestion to the market and often undercutting competitors, driving down margins across the board. Almost 100 of the sample – spread across the country but significantly in the Home Counties, South West and West Midlands – provide an opportunity as prime takeover targets, suggests Plimsoll.