Plimsoll Publishing has brought out the report due to growing consolidation in the UK timber products sector.
The company said key factors forcing owners to consider their future included their age (a third of directors are over 60) and the direction of the market, with sales not keeping Pace with inflation for 42% of the top 920 firms.
In addition, 74% of companies are suffering a fall in profitability and the lack of a successor is an issue for 253 firms incorporated before 1970.
At the same time there are positive signs: 266 companies increased profitability in the past year and 29% of directors are under 50.
Plimsoll senior analyst David Pattison said: “The effective two-speed industry is forcing some to feel like the market is in decline and that selling up or merging is a great way to save the company. On the flip side, the other companies grabbing all the growth and profit see an acquisition as a great way to continue their march into the market.”
Plimsoll has identifed 557 “buyer” companies and 267 “seller” companies in its analysis.
