“”What the heck is a kerchunker® company?”” you ask. Kerchunker is a term trademarked by Runnymede professionals to describe service sector companies that are steady and often have recurring revenue models. Hopefully, each quarter and each year, they grow… kerchunk, kerchunk, kerchunk!
Follow The Leader: Investing In Chinese Service Sector Growth
According to Bloomberg, the service sector in Asian emerging markets is poised to exceed 50% for the first time. This is a historic milestone as Asia shifts its role as the world’s manufacturing partner to developing self sufficient domestic growth via its service sector. China’s 12th 5-year plan lays out specific guidelines and incentives to create the environment necessary for extensive development in the service sector. In 2012, China’s service sector accounted for just 44.6% of GDP vs the world average of 63.6% so there is huge room for growth.
US Service Sector Soars in July
“Don't call it a comeback / I've been here for years.” – LL Cool J
The U.S. service sector expanded in July at its fastest pace in five months. The Institute for Supply Management (ISM) reported that its service index rose to 56 last month, exceeding economists' expectations for 53 and a significant improvement over June's 52.2. A reading above 50 indicates the sector is expanding.
U.S. Jobs: It’s All About The Service Sector
The U.S. Service Sector is not only the economy's most diverse sector, it is huge – employing 90% of the workforce. Service workers are the highest paid and best educated, and they are the lowest paid and least educated. The sector encompasses neurosurgeons, college professors, delivery-truck drivers and dishwashers.
The United States Census Bureau published an interesting study entitled “1940-2010: How Has America Changed?” Looking at the American workforce, we see that it has more than tripled in the last 70 years with a major industry shift from jobs in manufacturing and agriculture (41.9%) to service jobs. This mega trend is unlikely to reverse any time soon.