Demand for temporary workers in the United States is expected to increase 20.9% on a seasonally adjusted basis for the 2010 fourth quarter when compared with the same period in 2009, according to the Palmer Forecast.
16. Segment Growth Projections
16
0 100 200 300 400 500 600 700 800
Home Health Care Services
Computer Systems
Colleges, Universities and Professional Schools
Limited-Service Eating Places
Offices of Physician
Local Government
Elementary and Secondary Schools
General Medical
Employment Service
Management, Scientific, Technical Consulting
BLS
17. Margins
17
Gross Margins Trend
Company 2006 2007 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 2Q10
Adecco SA 17.30% 18.90% 18.10% 19.30% 18.00% 18.20% 18.50% 17.80% 17.80%
Manpower Inc. 17.90% 18.80% 18.00% 19.50% 18.10% 20.80% 18.30% 18.30% 17.40%
Randstad
Holding (1) 19.90% 20.80% 20.50% 20.90% 20.90% 20.70% 20.10% 19.70% 19.0%
Kelly Services
Inc. 16.30% 17.50% 18.00% 17.70% 17.60% 17.60% 16.80% 16.70% 15.80%
Robert Half 42.20% 42.60% 41.70% 42.20% 41.70% 40.70% 35.70% 35.30% 37.70%
Spherion 23.30% 23.70% 22.20% 23.10% 21.90% 20.70% 19.50% 20.30% 20.5%
MPS Group 27.60% 28.70% 28.60% 29.00% 28.40% 28.60% 26.90% 27.20% N/A
True Blue 32.10% 31.90% 30.40% 29.80% 29.70% 29.30% 27.90% 29.50% 26.60%
AMN
Healthcare
Services 26.70% 26.00% 26.40% 26.40% 25.70% 25.70% 25.60% 27.00% 27.60%
Kforce 34.70% 35.90% 34.10% 35.80% 34.50% 33.50% 31.20% 34.40% 31.90%
Average 25.80% 26.50% 25.80% 26.40% 25.70% 25.60% 24.10% 24.60% 23.8%
Source: Staffing Industry Analysts, Inc. and company reports and GPalmer
(1)Randstad completed the acquisition of Vedior in May 2008. Randstad's gross profit margin is on a
pro forma basis.
23. Quick Tips
23
Raise prices in Jan 2010 – SUI and WC will increase
Stay close to Health Care Reform / ASA/CSP
If you are thinking about selling consider an ESOP
Consider Off Shore Recruiting solutions, i.e. PSG
www.psgglobalsolutions.com Brian
Cotter(310) 566-7436