ManpowerGroup 2007 Annual Report Download - page 9

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Our core temporary staffi ng business, which is extremely healthy from
a secular perspective, is an area that we continue to develop, as there
is still ample opportunity for growth. It is a luxury to be a 60-year-old
business and continue to see growth opportunities in the original service
area, which remains a major growth driver. One reason for this growth
is that many of our markets are still in the early stages of labor market
development, marked by recent shifts in labor policy or legislation that
have introduced fl exibility for the fi rst time in the past fi ve years or less.
For example, we have been providing services in Germany for many
years, but we are in a major growth mode there now due to changes
in the German government’s labor market strategies. In these markets,
the advent of fl exible staffi ng has created a form of renaissance in the
workforce, making it more agile, talented and relevant.
In emerging markets, there is tremendous potential, as employers are
impatient and are confronted with talent challenges that are equally as
complex as in mature markets. These markets are in the early stages
of adopting temporary staffi ng to create workforce fl exibility, including
countries like India, China, the Middle East, Vietnam and much of
Eastern Europe, where we have secured market leadership positions
and have established our brand presence based on the quality of our
service and integrity of our people. Our revenues in these emerging
markets increased to $222.6 million in 2007, an increase of 61 percent
(44 percent in constant currency), which was driven by India (+119%),
China (+49%) and Eastern Europe (+52%).
Over the past year, we have broadened our geographic presence,
expanding into seven new countries and territories for a total of 80, and
expanding our offi ce network by another 100 offi ces, to a total of 4,500.
In a year when some of our largest operating units were down or fl at in
revenue, our geographic diversifi cation fueled our record performance.
In the past few years, we have organized many of our operations to
better focus on the small/medium size businesses (SMB). The value we
can offer to SMBs is substantial and it also creates balance in our
portfolio. We fi nished 2007 with more than 50 percent of our revenues in
the SMB category – clearly progressing in the direction we have been
working toward. As an example, Manpower France increased their SMB
revenues by 17 percent in 2007, while the overall business there grew at
6Shareholder’s Letter
2006
2007
2005
2004
2003
4,365
4,429
4,041
4,338
4,498
Systemwide Offices
It is a luxury
to be a 60-
year-old
business and
continue to
see growth
opportunities
in the original
service area,
which remains
a major
growth driver.
Offi ces across 80 countries and territories allow us
to meet the needs of clients in all industry segments.