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Wall Street Transcript Interview with John Healy, Managing Director and Equity Research Analyst with Northcoast Research Holdings, LLC: Technical Temp Staffing Grows as Flexibility Becomes Key Economic Consideration

67 WALL STREET, New York - January 27, 2013 - The Wall Street Transcript has just published its Staffing, Outsourcing and Rental & Leasing Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Workforce Flexibility Requirements - Growth in Temporary Staffing Demand - Secular Trend Toward Temporary Staffing - Strong Demand For IT Staffing - Growth in Equipment Leasing Adoption Rates - Consolidation Potential in Fragmented Industry

Companies include: Manpower Inc. (MAN), Robert Half International Inc. (RHI), Kforce Inc. (KFRC), Kelly Services Inc. (KELYA), TrueBlue, Inc. (TBI) and many others.

In the following excerpt from the Staffing, Outsourcing and Rental & Leasing Services Report, an expert analyst discusses the outlook for the sector for investors:

TWST: I'd like start by giving our readers an overview of your coverage universe.

Mr. Healy: I'm a Managing Director and Research Analyst at Northcoast Research. At Northcoast I'm in charge of covering a variety of business services industries, and that includes all employment-related services companies, companies like Manpower (MAN), Robert Half (RHI), Kforce (KFRC), Kelly Services (KELYA) and TrueBlue (TBI). I've also covered other staffing firms and employment-related services in my past; some have been acquired, including companies like MPS and SFN Group.

TWST: What is your sentiment on the employment-related services space right now and why?

Mr. Healy: My sentiment is incredibly positive. I think that 2012 has been a very strong year for all the staffing companies that I follow. We haven't seen tremendous economic growth, but we've seen very good performance in terms of topline growth or topline stability at the staffing firms that I follow. And I think what's driving the demand ahead of what you'd say is lackluster economic growth is a deeper appreciation by companies regarding the value that they can receive from temporary staffing firms.

Employers are looking to be increasingly flexible and frugal with their spend on employment, and they're looking to staffing firms to provide them with labor that provides them with flexibility to staff up or staff down related to demand. The staffing firms are also providing very strong labor; due to the looseness in the labor market, they're able to find very good, qualified candidates who want to work and who want to prove themselves valuable to a company in order to attain a full-time position. Staffing firms meet those needs.

TWST: So it's not just a matter of economic changes, but secular shifts?

Mr. Healy: Yes. I would say the amount of economic growth that we've seen of late has been very low relative to the amount of growth we've seen in the temporary staffing industry. Typically you need 2.5%-, 3%-type GDP growth, whether it's domestically or internationally, for the staffing market to grow, and we haven't really seen consistent growth rates over the last few years at those levels. But we have seen the temporary staffing market continue to grow, so my conclusion is that the staffing market is growing in an environment where it historically would not have grown, so as a result, there is some sort of added benefit employers are putting on temporary labor. I think that's a very good thing and a powerful thing for the staffing firms that I follow.

TWST: Are there any other trends you're seeing in the industry?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.