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Analyst Interview Excerpt
Continued Improvement & Growth in Temp Staffing - John Healy - Northcoast Research Holdings LLC


Full article published: 07/12/2010


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TWST: May represented a flat month for some staffing firms and a slight uptick for other firms.
Mr. Healy: I think when you look at the trends in temp staffing right now, for the most part things are still picking up on a sequential basis, and normally they show a little bit of a sequential improvement as you move throughout the year. But if you're seeing normal improvement in the business, you're seeing 10 consecutive months of improvement in temporary staffing, and you've seen about four or five months of year-over-year improvements in temp staffing. So I think even though the sequential improvements are not what you would call jaw-dropping, it reflects a continued improvement in the temp environment. The year-over-year gains are substantial. I feel that most likely, more light industrial-oriented staffing companies are experiencing the benefit as well as some of the office clerical-type companies.

TWST: What types of light industrial jobs are we seeing pick up?
Mr. Healy: What happens in most economic recoveries is blue-collar hiring tends to take place before pink-collar or white-collar hiring. But I think what we're experiencing is a classic recovery - companies are bringing back line workers before they're bringing back line managers. As a result of that, there is a demand for people to work in warehousing jobs, shipping jobs, light assembly or manufacturing-type jobs a little bit before there is a need for someone to come in and audit the books.

 

Tickers included in this excerpt: ADEN, BA, KELYA, KFRC, MAN, MPS, RAND, RHI, TBI

 

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