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Industry Outlook 2005
Finance / Insurance
PEOs: Growing Their Base
PEO customers are hiring -- excellent news for professional employer organizations whose revenues notch up with each additional worker. PEOs provide payroll, employee benefits, workers' comp and human resources services to clients. Most expect double-digit growth this year. "Some of the (past) bloodletting has strengthened the industry," says Tampa-based consultant Dan McHenry. Consolidation will continue as smaller players seek partners or acquirers with the technology infrastructure, creativity and capital to grow, says Craig Vanderburg, president and CEO of Presidion Solutions. "There continues to be a need to outsource what we do," he says.
PEOs in Florida
Employees: 696,453
Companies: 50,907
Payroll: $17.1 billion
Source: Florida Association of Professional Employer Organizations, 2003 survey
2005 Forecast: "Our clients are growing again so that's good news. The workers' compensation situation in Florida seems relatively stable," says Carlos Rodriguez, division president of ADP TotalSource in Miami.
