In The News

October 2003

Robert Macdonald, President of Sterling Human Resources Consulting announces the following:

As a result of a continuing and unrelenting economic slump, the recruiting industry worldwide has fallen on hard times.

Industry newsletters such as the Fordyce Letter and Executive Recruiter News estimate that industry revenues have declined 25 percent to 35 percent over the past two years, resulting in the closure of approximately 500 firms, accounting for 10 percent of the industry. The surviving firms, in a great number of cases, have had to institute layoffs, implement drastic cuts in expenditures, and seek protection from creditors through bankruptcy filings.

Robert Macdonald, President of Sterling said, its business, primarily as a result of its strong presence in the China and India markets, has continued to grow. In 2000 and 2001 Sterling experienced double-digit growth in revenues. In 2002 the company experienced slower growth; however managed to obtain a 9 percent increase in revenues which was well above the industry average for the same period. As a result of an aggressive growth program in China and India we are projecting strong growth in 2003.

In order to conform to the laws and regulations recently established by the People’s Republic of China relating to the operations of executive search businesses in China, a Cooperative Joint Venture has been formed by and between Sterling and Tyer Human Resources Company. The Tyer Human Resources Company is the largest privately owned domestic recruiting firm in China conducting career and job centers throughout the PRC.

The Cooperative Joint Venture Company is called Shanghai Sterling Human Resources Management Consulting Company, and is now authorized to undertake all activities related to the executive recruitment and human resources business in the Peoples Republic of China.

In conjunction with the formation of Shanghai Sterling Human Resources Management Consulting Company, and in anticipation of our continuing growth in the China and other markets, we have retained the services of:

• Hong Kong Shanghai Banking Corporation, for banking services.
• Deloitte Touche, for accounting services.
• Baker & McKenzie, for legal services.

We are looking forward to continue meeting the recruitment and other human resources needs of our clients worldwide through the Sterling branch offices, alliances and joint ventures.