Sia Webinar 13 Dec 2011 Final

1Confidential Report – NOT for Distribution | ©2011 Crain Communications Inc. All rights reserved.

Western Europe

13 December 2011

3pm GMT/ 4pm CET

10am PST/ 1pm EST

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Annual Review & Predictions for 2012

Speakers:

Ton Mulders Director Strategic Solutions, Europe

John Nurthen General Manager, Europe

David Papapostolou Research Analyst, Europe

Adam Pode Director of Research, Europe

Sponsored by

2


• Introductions

• Review 2011

• Predictions for 2012

• Q&A– Your questions are welcome!

• Summary/Closure

©2011 by Crain Communications Inc. All rights reserved.

3

CWS Council Members (partial list)


4©2011 by Crain Communications Inc. All rights reserved.

Western Europe Buyer Webinar

Sponsored by


Christine Abbeduto

Global Vice President

Vendor Managed

Services

5

European Staffing Market Growth 2011

• Staffing Industry Analysts’ 2011 forecast for Europe

– +11% revenue growth

• The fast track

– Germany, Italy

– Scandinavia (especially Sweden)

– Sweden identified as the world’s ‘Most Attractive Staffing Market’

with Poland 3rd

• The laggards

– UK, Portugal, Spain, Ireland


6

The Waves Swamping Europe


-60%

-40%

-20%

0%

20%

40%

60%

Euronext Year over Year Performance

Euronext 100

7

The Waves Swamping Europe

Source: Staffing Industry Analysts, ABU Netherlands, Pole Emploi France, BAP Germany


-60%

-40%

-20%

0%

20%

40%

60%

Year-over-year Change in Hours Worked for Selected Countries

France Netherlands Germany European average (+CH) Euronext 100

8

Listed Staffing Companies’ Performance

• Q3 median growth

– Revenue up by 17.5%

– Net income up 39.7%

– Gross margin for top ten down -0.8%

• +40% revenue growth

– Wise Group

– RTC Group

– DLSI

– Staffline


– Hydrogen Group

– Uniflex

– Brunel International

9

Legislation


• EU Temporary Agency Work Directive

– Failures to transpose

• Infraction proceedings

– Post-deadline expectations

16 Member States not in line with the EU 1% transposition target

10

Legislation


• Agency Workers Regulations

– UK

• 12 week qualifying period

• Swedish derogation

• Bringing temporary staffing in-house

• Government review of AWR in 18 months

– Ireland

• Social partners fail to agree

11

Legislation

• Germany

– Minimum Wage for Temporary Workers

• France

– Removal of low wage subsidy

• Czech Republic

– Ban on non-EU temporary workers from 2012


12

Scandals


13

European Staffing Company M&A

• 118 staffing company deals in 2011

– Professional staffing more attractive than blue collar

– IT, healthcare staffing: 20% of all deals

– Trans-border deals: 20% (2/3 trans-continental)

• Non staffing deals: homecare services and

software providers


14


• Recent significant deals

– Randstad: SFN (USA)

– Adecco: Drake Beam Morin (USA), Medic (DE), Trainico (DE)

– Allegis: Aston Carter (UK-IT)

– Droege Capital GmbH: Trenkwalder (AT)

– ManpowerGroup: Proservia (FR)

– Gi Group: right4staff (UK)


15


• Recent significant deals

– Synergie

• 2011: Draig Personnel (UK), GMW (Germany)

• 2010: Olympia (Portugal & Spain)

– Groupe Crit

• 2011: Peoplelink (US)



Global MSP/VMS Market 2010 (no double count)

0

10

20

30

40

50

60

70

MSP VMS

€B

illi

on

Own VMS

3rd Party

VMS

None/other

Own MSP

3rd Party

MSP

Client

Resource

No detail

€57bn

€37bn

a)b)

a) + b) =

> €63.2bn

> $83.7bn

Source: Staffing Industry Analysts – VMS/MSP Landscape Report 2011

17

Europe

22%

(€14bn)

Rest of

World

78%

(€49bn)


Europe: >22% of Global MSP/VMS spend 2010

Global

> €63bn

* Fieldglass and Lumesse not regionally specified

Europe*

> €14bn

Source: Staffing Industry Analysts VMS/MSP Landscape Report 2010


MSP/VMS Trends

* Source: Staffing Industry Analysts – VMS/MSP Landscape Report 2011

• Growth

• Gaining market share

• Consolidation

• Diversification


Predictions for 2012: Lack of Visibility

20

Predictions for 2012

• Demand for contingent labour not as strong

as in 2011

– But still positive despite economic uncertainty

– Skills shortages in Germany

– UK; a market of conflicting trends

– Potential pick-up in demand for professional/

executive skills



2012 SIA Team Predictions

22

Any Questions?


Western Europe Buyer Webinar

Sponsored by


Christine Abbeduto

Global Vice President

Vendor Managed

Services

24

SAVE THE DATE!SAVE THE DATE!

15-16 May 2012

Lancaster Hotel, London

www.cwssummitwe.eu

© 2007-2011 The London Organising Committee of

the Olympic Games and Paralympic Games Limited


25

Next European Webinar

The Agency Work Directive: What Happened?

Sponsored by Beeline

Wednesday 25 January 2012

9am EST / 2pm GMT / 3pm CET

26

Remember we want to know what you are

thinking…..

Ton Mulders

Director Strategic Solutions, Europe

E: [email protected]

P: +31 (0) 651 385 435


Sia Webinar 13 Dec 2011 Final

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