Express Indy West has been profitable ever since its opening in 1995 by Dave Kehlor. Since Express Employment Professionals is a privately-held company, the financial records of the company are not available but after speaking with Dave, he was able to give some insight on the success of the company. Dave and his wife open Express Indy West in 1995 and was the only Express office in Indianapolis until 2005. He then bought the Lebanon office in late 2004 along with becoming the developer for the whole state of Indiana acting as a mentor for all Express offices in Indiana. Kehlor (2014) explained that Express Indianapolis (which includes 5 locations) generated between $12-13 million in 2004. In 2009 right after the recession, Express Indy generated roughly $18.3 million. This alone was a big jump for Express Indy, especially with the addition of the other four offices. This was an 82% jump in sales and put a total of 628 people to work. In 2012, Express Indy generated $36.3 million which was slightly higher than its 2013 sales of $33.4 million. This discrepancy was due to the loss of two of Express’s largest clients of Express moving out of town. During this time, Express had roughly 400 associates at these two companies in which Express took a big hit. Although sales generated during 2013 were lower, Express had billed clients roughly 2 million hours and had roughly 11,050 people working for the year. This was an 83% jump in hours since the recession. Even after the recession, Express has remained competitive and continued its growth in the industry.
As previously revealed staffing services are at a high demand and are believed to be a longstanding trend. Express Employment Professionals is in a growing industry and ranks competitively in the industry. According to Landhuis (2013), he estimated that 105 firms generated at least $100 million in U.S. staffing revenue in 2012. These 105 firms accounted for 54.1% of the total market. In this market analysis of Landhuis (2013), Express Employment Professionals was ranked 7th out of 105th and had a market share of 1.8%. In this study not all competitors were even taken into consideration but among those considered, Express was highly ranked. Landhuis (2013) reveals that Allegis Group is ranked 1st with the market share of 6.2%. Among all the market share percentages, Allegis Group by far passes the others as rank 2 has a market share of 3.5%. There is no one company who is a price taker in the industry. In appendix 2, a chart shows the sum of the market shares for the top 5 and top 15 largest staffing firms from 2007 to 2012 (Landhuis, 2013). This chart accurately represents the market shares of the top 5 and top 15 firms during the recession and the recovery years after. After the recession, both groups steadily increased and stayed roughly constant.
Express Employment Professionals operates in a monopolistic competition industry. In 2013,...