What is going on in the banking industry at the moment? Well, there must have been an absolutely huge shake-up after all the problems the industry has faced recently. While it would be easy to perceive that barely anything’s changed – if the tabloids have got it right, at all – after a quick bit of research it would seem that actually there’s a lot happening behind the scenes. The banks aren’t – believe it or not – completely clueless; they do seem to realise something’s gone wrong in the last year and a half.A very quick (and I mean, very quick) search online will find you a vast amount of job opportunities in the banking and finance industries. It would seem that people right across the board have suffered (and by suffered I mean they’ve lost their jobs or have been moved around) as a result of the current banking situation. New jobs are springing up across the board – from executive level right down to the lowly high street bank assistants.I’ve been hopeful from the beginning of the recession that it might lead to revitalisation rather than a move towards inexperience. By that I mean that the best option is surely to re-tailor job roles throughout the industry and then recruit the most able men and women who can fit into that role, rather than simply hiring and firing people into flawed positions, which there is certainly a danger of doing in the hope of frantically trying to look like a company is doing something proactive and positive.So where are the openings? In fact, top financial sector recruiters will tell you that the field is wide open for a talented individual to ‘make their own play’. This is about taking advantage of opportunities ‘amidst the madness’. During a recession, when everything in the financial sector seems all-too dark and gloomy, there is most definitely the chance to shine for the most able and impressive candidates/employees. Why not flourish in the industry while the pressure is on?I’ve merely attempted to sum up an overwhelmingly vast topic in a few hundred words, for anyone who is currently looking for job opportunities in the finance industry or in banking should definitely start their search with recruitment agencies – it’s the easiest, fastest and simplest way to gauge the recruitment climate of an industry. In addition to this, why not check out some online forums, blogs and other articles?
A comparison of the rate of return on investment in US manufacturing in general and in US manufacturing of furniture in particular portrays the furniture industry in a generally favorable light. Profitability is defined three different ways:* profits before tax expressed as a rate of return on sales* profits before tax expressed as a rate of return on shareholders’ equity* profits plus interest payments on debt expressed as a rate of return on assetsOnly on the basis of the first method of calculation – profits as a share of sales – is the furniture industry’s performance below the one for manufacturing as a whole. In 2005, the furniture industry’s rate was 6.0% compared to 6.5% for manufacturing overall. But this measure of return on investment is insufficient as it does not take into account the required size of the investment.When profits are expressed as a return on shareholder’s equity, furniture achieves a rate of 20.7% compared to 14.6% for manufacturing. However, this measure is also lacking. It includes the equity, but not the debt portion of the investment producing the return.In our view a more reliable measure expresses net profits plus interest expenses as a rate of return on total investments. This rate is computed as follows:ROI = ((Net Profit Before Tax + Interest Expenses) / Assets) X 100This measure gauges companies’ capacity to generate both profit and interest payments on borrowed funds. It is therefore not influenced by the chosen capital source (e.g., equity or debt capital).We estimate furniture’ rate of return based on this definition at 9.5% in 2005 compared to 5.9% for overall manufacturing. Again, furniture producers produced a stronger rate of return compared to manufacturers as a whole.The rates of return prevailing in furniture and throughout the manufacturing sector also compare favorably with the rates of return prevailing on typical financial instruments (Commercial Papers or Government Bonds).In spite of the still healthy financial state of the American furniture industry, the trend points toward a deterioration. The rate of return for furniture producers has been rising until 1999 but dropped in the years thereafter with the exception of a short reprieve in 2002. In 2005, before tax profits as a return on shareholder’s equity for furniture producers reached 20.7%, compared to a peak of 31.9% in 1999. Nevertheless, the rate of return for furniture has been above the one for manufacturing overall in recent years.It is interesting to note that the rate of return within the furniture and fixtures industry – measured as profit before taxes as a percent of shareholders’ equity – was marginally lower for small furniture companies than for large companies in 2005.