Good choice in Germany
31 August 2012
Empresaria's recent acquisition of Headway, a German recruiter specialising in supplying engineers and skilled construction workers, looks particularly well judged.
In the past decade, Germany
In the past decade, Germany
Empresaria's recent acquisition of Headway, a German recruiter specialising in supplying engineers and skilled construction workers, looks particularly well judged.
In the past decade, Germany has taken on the mantle of being the economic 'sick man of Europe'. However, all that is now changing, and with unemployment falling and a favourable economic outlook, agencies look set to benefit.
This was reflected in a very upbeat statement issued at Empresaria's recent AGM. The statement said that the German company had integrated well into Empresaria's decentralised structure, and had already started to perform strongly. On the back of this the statement said that the Group has now decided to accelerate its branch opening programme in Germany.
Miles Hunt, Empresaria's chief executive, is bullish about the acquisition. "Germany is the fastest growing staffing market in the world," he says. He is also keen to take advantage of the freeing up of the German labour market, which makes it easier for firms to take on temporary workers.
Hunt believes that this alone will increase the percentage of the workforce who are temporary workers from its current 1% to 2%, though even this doubling of the current 'penetration rate' would still see Germany fall far short of the UK's 5%.
Hunt says the acquisition is also part of the Group's strategy of building "a balanced international staffing group", both in terms of geographical spread, and in serving markets at different stages of economic development.
Hunt also points to the fact that the expansion is funded from profits rather than from borrowing.
So is Hunt worried that rise of this new 'Teutonic Tiger' could stall? "The prognosis is relatively strong with economic growth and structural change in the labour market set to continue," he says. Analysts agree, with one forecasting at least three more years of economic growth.
Market sentiment has been favourable with the share price trading close to 187p, its 52-week high, enough for one analyst to upgrade his profit forecasts.
In the past decade, Germany has taken on the mantle of being the economic 'sick man of Europe'. However, all that is now changing, and with unemployment falling and a favourable economic outlook, agencies look set to benefit.
This was reflected in a very upbeat statement issued at Empresaria's recent AGM. The statement said that the German company had integrated well into Empresaria's decentralised structure, and had already started to perform strongly. On the back of this the statement said that the Group has now decided to accelerate its branch opening programme in Germany.
Miles Hunt, Empresaria's chief executive, is bullish about the acquisition. "Germany is the fastest growing staffing market in the world," he says. He is also keen to take advantage of the freeing up of the German labour market, which makes it easier for firms to take on temporary workers.
Hunt believes that this alone will increase the percentage of the workforce who are temporary workers from its current 1% to 2%, though even this doubling of the current 'penetration rate' would still see Germany fall far short of the UK's 5%.
Hunt says the acquisition is also part of the Group's strategy of building "a balanced international staffing group", both in terms of geographical spread, and in serving markets at different stages of economic development.
Hunt also points to the fact that the expansion is funded from profits rather than from borrowing.
So is Hunt worried that rise of this new 'Teutonic Tiger' could stall? "The prognosis is relatively strong with economic growth and structural change in the labour market set to continue," he says. Analysts agree, with one forecasting at least three more years of economic growth.
Market sentiment has been favourable with the share price trading close to 187p, its 52-week high, enough for one analyst to upgrade his profit forecasts.
