SIA recently published its May 2020 Pulse Survey Report, which captured April’s performance of participating firms and the impact of Covid-19 across US staffing segments. The survey is a useful tool for staffing firms to identify shifting trends in the market and to gain insights on how peers are operating during this period. The Pulse Survey is normally conducted bimonthly, but due to global events, it has run monthly since March.

Survey respondents reported a median 18% year-over-year decline in their US temporary staffing revenue in April, a further decrease from the 5% reported decline in March. Firms with engineering staffing as their primary segment reported a median decline of 10% year over year. While the May Pulse Survey sample size is not large enough to perfectly reflect the engineering staffing industry, it does at least directionally suggest that engineering staffing is faring worse than other professional staffing segments, notably IT staffing (down 4% year over year) and marketing/creative staffing (down 3%).

Relative to other professional staffing sectors, more engineering temporary workers are needed to work onsite at client locations and are unable to work remotely. Therefore, the recent closure of factories, auto plants and the cancellation of construction projects owing to Covid-19 have affected a greater proportion of engineering assignments. Similarly, the precipitous oil price decline following significant fall in demand and delays to an agreement among the OPEC+ countries on further production cuts only served to exacerbate the sense of uncertainty in the sector.

Firms were also asked whether they have seen new orders increase, decrease, or stay the same over the past three months. The net proportion is calculated by subtracting the proportion reporting a decrease in new orders from the proportion reporting an increase. A net 67% of surveyed engineering staffing firms reported a declining trend in new orders but a net 17% expect a positive outlook for the next six months from the pent-up demand as the economy reopens. Just as different segments are faring differently during the peak of the crisis, we must also expect marked differences during the recovery period.

In terms of bill rate trends, a net -25% of engineering staffing firms reported an increasing trend in bill rates over the past three months. Looking ahead six months, a net -8% of staffing firms anticipate an increasing trend in bill rates.

Corporate members of SIA can download the May Pulse Survey Selected Findings report here.

Only survey participants receive the full report of results. To receive the full Pulse Survey report of results, staffing firms with US operations are invited to participate in the survey here.