Service Industries

Here we are presenting what is service industry and how the future of it.

1. SERVICE INDUSTRY

2. Overview Think about all the times you paid for someone to do something for you. Maybe you paid someone to paint your house, change the oil in your car or even fix your meal at a restaurant? You likely paid someone to do these things for you because you didn't have the time or skills to do them yourself. Or, maybe you just didn't feel like doing it on your own, and it was worth it to you to pay someone else to do it instead? Restaurants, car service shops and the like are all service-based businesses. Collectively, they are relied upon to satisfy the needs and desires of thousands of consumers each day. As long as we have limited time, limited knowledge, and simply don't enjoy doing everything ourselves, service businesses will thrive!

3. Definition A commercial enterprise that provides work performed in an expert manner by an individual or team for the benefit of its customers. The typical service business provides intangible products, such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and transportation services.

4. Three-Part Economy Also called the tertiary sector, the service sector is the third piece of a three-part economy. The first economic sector, the primary sector, covers the farming, mining and agricultural business activities in the economy. The secondary sector covers manufacturing and business activities that facilitate the production of tangible goods. The service sector, though classified as the third economic sector, is responsible for the largest portion of the economy’s business activity. Businesses in this sector are rapidly placing more focus on what is becoming known as the "knowledge economy," or the ability to surpass competitors by understanding what target customers want and need, and operate in a way that meets those wants and needs quickly with minimal cost.

5. Technology in the Service Industry Technology, specifically information technology systems, is shaping the way businesses in the service sector operate. In nearly all industries within the sector, businesses institute technology to bolster production; increase speed and efficiency; and cut down on the number of employees required for operation. This cuts down on costs and improves incoming revenue streams.

6. Type of Service Industry Consumer Services Product sellers often offer basic services, such as buying assistance, warranties, credit purchases and after-sale support. A number of companies specialize in selling intangible service solutions that consumers buy based on provider expertise, time savings or preference. Tanning, telecommunications, massages, lawn care and snow removal are examples of services that individuals and families buy. Services often require recurring purchases. With lawn care, for instance, you normally pay for service throughout the spring and summer growing seasons. Business Services Business buy services to help them operate efficiently. They often outsource work such as advertising, building and office upkeep, lawn care, debt collections, telecommunications and snow removal. Many businesses hire outside agencies for legal or marketing services.

7. GROWTH IN THE SERVICES DIVISION Data from the U.S. Bureau of Labor Statistics indicates that more than 97 percent of the jobs added to U.S. payrolls from 1990 to 2002 were provided by the service-producing sector. In 1984, the number of jobs in manufacturing was relatively comparable to the number of jobs in the services, but by 1999, the service industry employed about twice as many individuals as manufacturing or government. The three industries within the services division that experienced the most growth in the last decade have been (1) business services, (2) health care, and (3) social services. The business services areas in which the largest number of jobs were gained were personnel supply and computer services. The personnel supply area includes organizations such as temporary employment agencies, traditional employment agencies, and other organizations that supply labor to other companies. The computer services industry includes mass-produced software, custom programming, custom computer systems design, and computer leasing. The primary reason for growth in both of these areas has been changes in business processes.

8. In the health care industry, there were four components that added large numbers of jobs: offices of physicians and other practitioners, nursing and personal care facilities, hospitals, and home health care. These components gained 430,000 to 1.2 million jobs each between 1990 and 2002. Two main reasons for this increase are new medical procedures, with which additional personnel are required to perform them, and because of the increased number of elderly persons in the U.S. and their requisite health care needs. The third industry that gained the most jobs in the services division is social services. Social services encompass daycare for children, residential care for the elderly, and other family services; engineering and management services; private education; recreation and amusement; and membership organizations (e.g., houses of worship). The reasons for growth in the largest growth area of the services division—the business-oriented services—can be linked to three broad economic developments relevant to those services: contractual arrangements, increased construction activity, and changes in technology. GROWTH IN THE SERVICES DIVISION

9. MASSIVE AND GROWTH The growth of the service industry in the past two decades has prompted a number of questions about this sector of the American economy and the reasons for this trend. Some questions about the growth of the service industry include: What is the service industry and what types of businesses operate in it? What are the trends in growth for the service industry and the reasons underlying its growth? How is the service sector affected by recessions and economic down-swings? What are the human resources issues associated with the service industry? How is off shoring affecting American service jobs? What is expected in the future for the service industry?

10. MASSIVE AND GROWTH The services sectors—however defined, whatever industries happen to be parts of it today—are the consequence of a mature and wealthy economy—as illustrated by historical statistics provided by the Census Bureau. In 1900 services represented 25.4 percent of all employment (business and other but excluding government); this percentage had changed to 50.6 percent by 1980, 57.7 percent by 1990, and stood at 62.5 percent in the census year of 2000. With productivity in the goods-producing industries increasing (fewer people needed to produce the same dollar output) but much more sluggish in growth in the services sectors, employment in the mid-2000s stands even higher.

11. MASSIVE AND GROWTH A big part of whether you are happy with a service business is based on your  customer service experience . Your customer service experience is all the things the business does to ensure your satisfaction. This is a key part of the success of these businesses and how they try and differentiate themselves from competition. This includes the quality of work they perform, how friendly they are, the timeliness of completing their job, and their ability to answer questions or address any problems that may arise. Take a minute and think about a business you like to use or are very loyal to. They probably deliver a great customer service experience.

12. THE FUTURE OF THE SERVICE INDUSTRY As detailed above, the U.S. economy has experienced a shift from goods-producing jobs to service-sector jobs. Projections by the U.S. Department of Labor's Bureau of Labor Statistics expects this trend to continue with service jobs accounting for approximately 20.8 million of the 21.6 million new jobs from 2002 to 2012. In particular, jobs in the education and health services areas are expected to grow the fastest, adding more jobs than any other area of this sector at an estimated 31.8 percent Additionally, professional and businesses services (e.g., employment services; professional, scientific, and technical services; computer systems design; management jobs) will grow at a high rate (30.4 percent). Jobs in information will increase by an estimated 18.5 percent; this area includes jobs related to software and Internet publishing and broadcasting, and Internet service providers.

13. THE FUTURE OF THE SERVICE INDUSTRY Another area that will increase is leisure and hospitality, with employment growing by 17.8 percent due to an increased demand for leisure activities, accommodations, and food services. Trade, transportation, and utilities will increase by 14.1 percent in jobs related to transportation and warehousing; the retail trade; and water, sewage, and other utilities. A 12.3 percent growth is expected in employment in financial activities, with increases in jobs in real estate, finance, and insurance. Governmental service jobs should also grow at a rate of 11.8 percent, with jobs in public education and hospitals, state and local governments, and the federal government increasing in number. Finally, other non-governmental services that should increase at a predicted 15.7 percent are jobs in religious organizations, personal care services (e.g., hair stylists), and private household employment (e.g., cleaning services).

14. THE FUTURE OF THE SERVICE INDUSTRY The services sector is distinct from the goods-producing sector in the U.S. economy, and includes a very wide variety of industries and jobs. The number of jobs in the services sector has been growing in recent years, and data from the U.S. government indicate that this trend will continue. While many service sector jobs are believed to be recession-proof, only some areas of that sector are truly counter-cyclical, and some are simply noncyclical, meaning that they resist job loss during times of economic downturn. As service sector jobs increase in number, there are new concerns for managing human resources, one of which is the issue of offshoring , which is increasingly slowly.