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

This webinar is broadcast through your computer speakers via the audio broadcasting icon on

your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting

icon. If you continue to have trouble with the sound, you may dial into the call by dialing+44-

(0)20-3027-7997 and using access code 669 652 085. Need further assistance? Contact SIA

customer service at 800-950-9496 for the US and +44-(0)207-194-7754 for Europe.

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

Documents

Transcript of Sia Webinar 13 Dec 2011 Final