CCNI: Uncertainty about Obamacare provides an opportunity to staffing companies.

Zacks Small Cap Research

By Ian Gilson, PhD, CFA

The impact of the new health care regulations on employment is unknown. Polls that have been taken, and the results published, suggest that over 60% of respondents do not know how the regulations will impact them and what the cost of health care will be. It is no longer health insurance, it is health care, which has always been more expensive than insurance.

In a recent article published by CNBC (authored by Matt Belvedere) Bob Funk, CEO and Chairman of Express Employment Professionals, the fifth largest staffing company in the USA, was quoted as saying that "Obamacare is a boon for his industry". Mr. Funk is a former chairman of the Kansas City Federal Reserve.

In his opinion, small and medium sized companies are not hiring due to the uncertainty surrounding the implementation of the law. Many of these companies are using temporary staffing agencies instead of direct hiring. Although companies like Express Employment Professionals are not involved in the temporary labor segment, Command Center (CCNI) is is involved through its Command Staffing Division.

Some of these positions will be filled by full time employees when the laws become better understood. But even then some companies will choose to continue to use staffing agencies if they do not have to pay the healthcare costs and can avoid the penalty.

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