Counselor Commentary: Hire Power
Lots Of Opportunities For Growth For Ad Specialty Distributors Today
In case you hadn’t heard: The employment market can – and probably should – be better. Payroll processor ADP reported yesterday that U.S. private sector companies added 139,000 jobs in February, which fell short of analyst expectations of 160,000. The result was only slightly better than January’s job creation number of 127,000.
While some economists are blaming the tepid job figures on the cold and snowy winter that much of the country has faced over the past few months, one thing is clear: American companies are still hesitant to add fixed costs – read: new employees – to their operations. While there has been some job growth over the past six months, it has fallen below expectations and has not done much to raise the spirits of job seekers. However, it’s something that some analysts believe will turn around come spring. “The latest data fails to really show signs of slowdown while shoring up optimism that the payback resulting from the cold winter will produce a positive hiring rebound come the spring,” said Andrew Wilkinson, chief market analyst at Wall Street firm Interactive Brokers.
Let’s hope the spring really does provide that rebound because the economy needs it – and people who are out of work certainly need it. That’s not just pie-in-the-sky hope, either. American companies do actually have the resources right now to make it happen. The U.S. Commerce Department reported that as of the beginning of this year, U.S. companies had a total of $1.3 trillion of cash on hand, the highest total in two years. They’ve invested in stock buybacks and other stock-price inducing measures over the past year or so, but they’ve neglected major capital investments like machinery, technology, and personnel.
It’s time to change that. Companies with cash on hand, and profits still coming in, should be investing in their own future wellness by growing their employee ranks. Not only can it help to strengthen relationships with current clients, but it would also certainly open doors to new customers – the lifeblood of any growing business.
There are a lot of opportunities for growth for ad specialty distributors today – sectors like health care, manufacturing, and even real estate are expanding and in need of marketing help. Now is the time to get new employees on board to give you the upper hand on competitors when it comes to capitalizing on these opportunities. Don’t wait until everybody else is doing it. Hire extra people now.