Demand for Mid-Managers and Professionals On the Rise Again

Business Wire, July 16, 2002

Business Editors

Although companies are not engaged in the frenzied competition for talent that characterized the period from 1997 through the first half of 2001, a resurgence in new hires seems to be underway.

Mid-to-upper level managers, high-level executives, professionals, sales and marketing people and technical workers are in demand once again, according to the latest hiring survey conducted by Management Recruiters International, Inc. (MRI), the world's largest search and recruitment organization. MRI is a subsidiary of staffing and outsourcing leader CDI Corp. (NYSE:CDI).

Of the nearly 1,400 executives surveyed, 42.4 percent indicated plans to make additions to their staffs during the second half of 2002, up by 4 points from the first half of 2002. Another 49.1 percent plan to maintain their current staff sizes, down by .2 of a point, and 8.5 percent plan decreases, down by 3.8 points.

MRI President and CEO Allen Salikof, commented, "Although the job market lags behind the recovering economy by a few months, forward-thinking companies are already preparing for increased demand for talent and anticipating shortages. For the managerial, professional and technical segment of the workforce, that means real opportunity."

West Leads the Nation in New Hires

Projected new hires are highest in the West, with 47.5 percent anticipating the addition of new staff, although all regions of the country report that a healthy number of companies are planning to add staff:

                           Second Half 2002

                            % intend       % intend         % intend
                               to              to               to
                            increase        maintain         decrease
                             hiring        staff sizes     staff sizes

West                          47.5%           45.9%            6.6%
Southwest                     46.3%           43.8%           10.0%
Middle Atlantic               45.9%           45.2%            8.9%
South Atlantic                42.9%           47.2%            9.9%
Midwest                       42.3%           49.2%            8.5%
New  England                  41.4%           45.7%           12.9%
North Central                 39.9%           52.9%            7.2%
South Central(a)                --              --              --
        (a)Insufficient data

"Significant regional differences in projected new hires are a thing of the past," said Salikof. "Demand for talent is increasing, and it has more to do with demographics than economics. The combination of retiring baby boomers and fewer new entrants to the workforce means that people with the right skills will be greatly sought after."

Many of the Nation's Industries Anticipate Need for New Hires

A substantial number of companies within key industries indicate plans for new hires over the next six months. The percentage of the sample in each industry intending to increase, maintain and decrease hiring during the next six months is as follows:

Industry                         Increase      Maintain      Decrease
Biotech/Biomedical                 69.2%         26.8%         3.8%
Chemicals                          57.9%         34.2%         7.9%
Food and Beverage                  52.0%         44.0%         4.0%
Pharmaceuticals                    48.9%         42.6%         8.5%
Consumer Goods/Products            48.0%         48.0%         4.0%
Healthcare                         46.4%         50.0%         3.6%
Financial Services                 46.2%         50.0%         3.8%
Insurance                          43.5%         52.2%         4/3%
Telecommunications                 42.5%         50.2%         7.3%
Information Technology             40.3%         46.8%        12.9%
Construction                       37.5%         58.3%         4.2%
Medical Devices                    37.5%         50.0%        12.5%
Metals                             32.1%         60.7%         7.1%
Plastics                           19.5%         75.6%         4.9%

"Companies recognize that the return of a tight labor market is very likely, especially in the life sciences and healthcare-related fields. The recent recession clouded candidate shortages for awhile, but in many key industries the situation may become even more critical than in was in 2000," said Salikof. "Savvy managers are making greater efforts at retention because they know that as employment opportunities increase, the flexibility to change jobs also increases."

Ongoing National Survey

This is the 49th in an ongoing series of polls conducted by Management Recruiters International, Inc. (MRI). The survey was conducted in accordance with the professional and ethical standards of the American Marketing Association and the Marketing Research Association.

Management Recruiters International, Inc. (www.BrilliantPeople.com), is the world's largest search and recruitment organization with more than 1,100 offices worldwide. Based in Cleveland, MRI has systemwide billings of $600 million and places 45,000 people in jobs annually. MRI is a subsidiary of staffing and outsourcing leader CDI Corp. (www.cdicorp.com). CDI Corp. helps clients in targeted vertical markets improve their profitability and efficiency by providing professional project outsourcing, specialized temporary staffing and permanent placement, allowing them to focus on their core competencies. With more than 50 years of experience and an extensive network of offices, technical professionals and recruiters, CDI Corporation is a preferred provider of engineering, information technology and workforce solutions for Fortune 1,000 companies.