Staffing Industry Trends

Bob Wolter, Business Intermediary

Having specialized in the staffing industry these last eight years, I have observed that the performance of the industry is one of the first indicators as to how the economy is trending. 2009 was a terrible year for most all businesses and we know the reasons why. Most staffing firms had revenues that dropped 30% -35% from 2008 levels. However, as 2010 wore on the staffing industry showed significant strength and promise and it continued into 2011 & 2012. This was a welcome relief and M&A activity became brisk as a result…those buyers that had a growth platform through acquisitions were very busy indeed and many transactions resulted.

Fast forward to today…the trend in the staffing industry is flat. Hampered by regulations, Obamacare, lack of skilled workers and a ho hum economy, there are not many bright spots. This may indicate, as it has in the past, that we are in for a dicey period in our economy. The staffing business hasn’t trended down yet but keep an eye on it.