Industry Analysis & Industry Trends
Rising unemployment caused a fall in demand for payroll services during the past five years, with some companies choosing to bring their payroll and bookkeeping processes in-house to cut costs. As the economy improves and the labor market slowly revives, businesses will begin to outsource payroll services again, causing industry demand to rise. Nevertheless, as the unemployment level remains relatively high, profit margins will be constrained... purchase to read more
Industry Report - Starting a New Business Chapter
It is relatively easy for firms to enter this industry in that a large-scale operation is not essential to compete. This factor is reflected in the fact that there are a large number of small businesses operating in the industry. Accordingly, Automatic Data Processing Inc. is the only dominant player in the industry with 17.6% of total industry revenue. However, to compete against larger operators, firms must have a national presence, which is difficult given the large pool of possible clients in the economy.
Despite this factor, the industry's low barriers to entry lead to a large number of small players. One reason for this abundance is the low start-up costs, where all that is required is labor, knowledge and office space... purchase to read more