Komatsu confident of a comeback despite cuts

Feb 8 2010 by Chris Knox, The Journal

Mr Howe believes that a downsized business will be able to start growing its sales during the 2011/12 financial year, and said that he did not expect to make further cuts to staff over the coming months. The firm, which also exports excavators to the France, Italy, Germany and Spain, is also manufacturing a new high-reach demolition machine, which it believes will prove popular among its clients due its light weight and 23 metre reach.

However, Mr Howe said there was some way to go before confidence was restored in the market, with many of the firm’s customers currently unwilling to make such sizeable investments, with the average excavator costing around £80,000.

He said: “It’s been a very difficult time for the business, but I’m convinced that the restructure will help us to recover fully.

“The nature of our business is very cyclical and we expect to start rebuilding our turnover once the construction market continues to recover over the coming years.

“Prior to the collapse of Lehman Brothers in 2008 this plant had enjoyed a fantastic rate of growth. We have since seen our market shrink by two thirds, with confidence vanishing among out customers overnight.

“However, we believe we have taken the right measures to ensure that we can turn around the business once the downturn begins to subside.”