Global Demand for Executives Down Seven Percent in Fall Quarter; Demand Improves for Industrial Sector.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Dec. 12, 2002 Consumer/Retail and Healthcare Hold Steady According To according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Korn/Ferry Korn/Ferry International, headquartered in Los Angeles and founded in 1969 by Lester Korn and Richard Ferry, is the world's largest executive search firm with 70 offices in North America, Europe, Asia/Pacific, Latin America, the Middle East and South Africa. International Index Worldwide demand for senior executives fell seven percent in the fall quarter of 2002, compared to the fall quarter of 2001, according to the Executive Demand Index quarterly report released today by Korn/Ferry International (NYSE NYSE See: New York Stock Exchange :KFY KFY Kiss For You ), the world's leading recruitment firm. The EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. fall quarter includes comparative reporting for the September September: see month. , October and November period of 2002 compared to the same period in 2001.(a) "Pockets of strength in demand remain at the high-end of the executive suite and in certain sectors, despite the overall flat global market for managers," said Paul C. Reilly, Chairman and Chief Executive Officer of Korn/Ferry International. "Globally, there's some pent-up demand in the industrial sector, relative steadiness in the consumer and healthcare categories, but remaining weakness in technology, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and other sectors that have been hardest hit by the economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . While the overall timing of the recovery is not certain, companies are continuing to plan for the future and hire the right talent to make a difference." In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. executive demand dropped two percent in the fall quarter of 2002 compared to the fall quarter in 2001. In Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , executive demand improved 12 percent year over year in the fall quarter of 2002, compared to the fall quarter in 2001. European executive European Executive is an British airline based in Shoreham, United Kingdom. It operates scheduled passenger flights and corporate, pleasure and freight flights. Its main base is Shoreham (Brighton City) Airport. demand fell 19 percent year over year in the fall quarter of 2002, compared to the same quarter in 2001. In Asia/Pacific, executive demand fell six percent in the fall quarter of 2002, compared to the fall quarter of the prior year. North America: Hospital/Managed Care and Non-profit/Association Demand Improve; Industrial Demand Nudges Up; Advanced Tech Down In North America, demand for Financial Services executives finished with a 14 percent share in the fall quarter of 2002, compared to a 13 percent share in the same quarter of 2001. The Biotechnology/Pharmaceutical category reported a 13 percent share in the fall quarter of 2002, compared to 15 percent share in the same period of 2001, while the Hospital/Managed Care sector rose to a nine percent share in the fall quarter of 2002, compared to six percent share in the fall quarter of 2001. Demand in North America for Non-profit/Association/Education managers improved to a 12 percent share in the fall quarter of 2002, compared to a nine percent share in the fall quarter of 2001. Demand for Advanced Technology executives dropped to a 12 percent share in the fall quarter of 2002, compared to a 20 percent share in the same quarter of second quarter of 2001, while demand for the combined categories of Consumer Products/Fashion/Retail executives stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. with 12 percent share in fall quarter 2002, exactly equalling their fall quarter share in 2001. "Overall, a lack of commitment to hiring continues," said Caroline Nahas, Korn/Ferry International's Southwest Regional Managing Director. "Given the longevity longevity (lŏnjĕv`ĭtē), term denoting the length or duration of the life of an animal or plant, often used to indicate an unusually long life. of this tentativeness, an even greater pent-up demand will be created which will result in a fierce competition for talent when the economic cycle turns upward." Latin America: Executive Demand in Mexico Relatively Improves, With South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. Struggling Amid Political/Economic Challenges In Latin America, Mexico's relative resiliency The ability to recover from a failure. The term may be applied to hardware, software or data. in executive demand counterbalanced coun·ter·bal·ance n. 1. A force or influence equally counteracting another. 2. A weight that acts to balance another; a counterpoise or counterweight. tr.v. political and economic challenges throughout the South American markets. Consumer Products led all Latin American categories with a 24 percent share in fall quarter of 2002, compared to a 25 percent share in the fall quarter of 2001. The Industrial sector finished with a steady 17 percent share in the fall quarter of 2002, compared to an 18 percent share for the same period during 2001. Demand in Latin America's Financial Services sector rose to a 14 percent share in the 2002 fall quarter, compared to a 10 percent share during the same period in 2001, while the Advanced Technology category finished with an eight percent share in fall quarter of 2002, equalling its performance in the fall quarter of 2001. "Executive demand in Mexico increased noticeably no·tice·a·ble adj. 1. Evident; observable: noticeable changes in temperature; a noticeable lack of friendliness. 2. Worthy of notice; significant. in October and November of this year," said Horacio McCoy, Korn/Ferry International's Chairman, Latin America and President, Mexico. "Local companies and multinational corporations
named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum executives. In addition, we believe that executive demand will increase next year in South America, particularly in Brazil now that the presidential elections have concluded and Brazilian cabinet selection is set to commence." Europe: Executive Demand in Industrial and Advanced Technology Sectors Upped In Europe, executive demand in the industrial sector improved to a 20 percent share in the fall quarter of 2002, compared to an 18 percent share for the fall quarter in 2001. Notably, the Advanced Technology category rose to an 18 percent share, compared to an 11 percent share in the fall quarter during the same period of 2001. Executive demand in the Consumer sector improved to a 13 percent share in the fall quarter of 2002, while demand in the Financial Services category slightly softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. to a 19 percent share in the fall quarter of 2002, compared to a 20 percent share during the fall quarter of 2001. "While the overall demand in the fall quarter showed a reduction from the similar quarter in 2001, there are some interesting trends," said Dick Buschman, Korn/Ferry International's President, Europe. "More assignments have been focused on seeking functional specialists rather than general managers, particularly in sales, marketing, manufacturing, engineering and research and development. In addition, there are many national variations between the different European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. economies. But, it is clear that organizations seeking senior people are motivated mo·ti·vate tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates To provide with an incentive; move to action; impel. mo more than ever to recruit executives who will make a genuine difference." Asia/Pacific: Demand in Industrial and Financial Services Rise; Advanced Technology and Consumer Sectors Decline In Asia/Pacific, executive demand in the Industrial sector rose notably to a 16 percent share in the fall quarter of 2002, compared to a 10 percent share in the fall quarter of 2001. The Financial Services sector also improved, moving to a 15 percent share in the fall quarter of 2002, compared to an 11 percent share for the same period in 2001. Asia/Pacific demand in the Advanced Technology category declined to a 16 percent share in the fall quarter of 2002, while demand in the Consumer category fell to a 13 percent share in the fall of 2002. Executive demand also dropped considerably in the Biotech/Pharmaceuticals category to a four percent share in the fall quarter of 2002, compared to an 11 percent share during the same period of 2001. "The Asia/Pacific executive demand data for the fall quarter reflects continued cautiousness," said Charles Tseng, "Korn/Ferry International's President, Asia/Pacific. "While companies' downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing efforts have levelled off, corporations and organizations appear to be waiting for stronger signals and trends before hiring. On the upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside , there continues to be increasing hiring momentum in North Asia North Asia or Northern Asia is a subregion of Asia. The most common definition of the term is;
The Korn/Ferry Index: Over 4,900 Companies Surveyed The International Executive Demand Index is based on a quarterly survey of over 4,900 Korn/Ferry clients, which are among the world's largest corporations and non-profit organizations A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. -- including government agencies, universities and cultural institutions. (a) Please note: The Korn/Ferry Index quarterly schedule has been recently adjusted from a calendar quarter to Fall (September, October, November), Winter (December, January, February); Spring (March, April, May) and Summer (June, July, August) reporting periods. The adjusted quarterly index, which is closer in sequence with the firm's fiscal reporting, allows for a more timely release of executive demand data. About Korn/Ferry International Korn/Ferry International (NYSE:KFY), with over 70 offices in 36 countries, is the world's leading provider of recruitment solutions. Based in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , the firm works closely with clients worldwide to deliver customized executive search, management assessment and mid-level search services, including the identification of CEOs, COOs, CFOs, board members and other senior-level executives; the formal evaluation of senior management teams; and the recruitment of middle managers through its Futurestep subsidiary. For more information, visit the Korn/Ferry International Web site at www.kornferry.com or the Futurestep Web site at www.futurestep.com.
Percentage of Executive Demand By Industry
Fall Quarter 2002 vs. Fall Quarter 2001
(September, October, November)
North America Europe Asia/ Pacific Latin America
% % % % % % % %
Industry Fall Fall Fall Fall Fall Fall Fall Fall
Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr.
2001 2002 2001 2002 2001 2002 2001 2002
Advanced
Technology 20 12 11 18 18 16 8 8
Aerospace &
Defense 4 3 1 2 1 1 1 2
Consumer
Products 6 6 11 13 16 13 25 24
Energy &
Utilities 3 4 3 2 3 1 3 4
Entertainment/
Hospitality 3 3 4 2 4 6 3 1
Fashion/
Retail 6 6 10 7 6 11 3 8
Financial
Services/
Investments 13 14 20 19 11 15 10 14
Biotech/
Products/
Pharmaceutical 15 13 9 9 11 4 12 10
Industrial 8 9 18 20 10 16 18 17
Hospital/ 6 9 1 1 2 1 1 1
Managed Care
Not-for-profit/ 9 12 3 2 2 4 2 2
Education/
Association
Other 2 3 4 2 4 6 10 5
Professional
Services 6 6 6 5 12 7 4 3
Grand Total 100 100 100 100 100 100 100 100
Percentage of Executive Demand By Function
Fall Quarter 2002 vs. Fall Quarter 2001
(September, October, November)
North America Europe Asia/ Pacific Latin America
% % % % % % % %
Function Fall Fall Fall Fall Fall Fall Fall Fall
Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr.
2001 2002 2001 2002 2001 2002 2001 2002
Board Level 6 4 1 1 2 0 0 0
Chief
Executive
Officer 7 8 5 6 7 7 1 1
Chief
Financial
Officer 5 5 6 5 6 5 1 3
Chief
Information
Officer --
Chief
Technology 1 1 0 1 1 1 1 1
Officer
Finance &
Control 7 6 5 6 7 4 9 13
General
Management 40 40 38 30 37 33 37 24
HR &
Administration 5 9 8 5 7 11 7 10
Information
Systems 2 2 2 2 5 5 1 0
Manufacturing,
Engineering, 9 9 8 10 7 6 10 8
R&D
Marketing,
Sales &
Advertising 17 13 20 26 19 24 28 37
Other 1 1 7 9 3 4 4 3
Total 100 100 100 100 100 100 100 100
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