Staffing Industry Analysts has recently released two reports that forecast US and global engineering staffing growth in 2017. Staffing firms in the engineering space, as well as those looking to enter this segment, can use these reports to understand the market dynamics driving its growth and identify opportunities in this arena.

According to Staffing Industry Analysts’ recently published 2016 US Staffing Industry Forecast, the engineering segment of the US temporary staffing market is projected to grow by 1% in 2017 following a 2% decline in 2016 (as shown in the graph below).

U.S. temporary staffing market size year-over-year growth (%): Engineering segment

The relatively low growth forecast for 2017 (1% compared to 4% for the whole US temporary staffing market) indicates that the segment continues to face significant headwinds, ranging from weaker government spending to a severe candidate shortage. Weak demand for oil production should remain a major impediment for the segment in 2017.

Despite these obstacles, however, there are grounds for optimism. Demand for engineering talent is expected to remain strong in a number of industries, such as manufacturing and automotive to cite just two examples. The low price of oil is one of the factors (along with low interest rates and lower unemployment) that has driven growth in the automotive industry, one of the stronger pockets of demand for engineering staffing.

Stepping back to take a broader perspective, The Global Engineering Report 2016 offers our most detailed estimate of the worldwide market for engineering staffing services. The global engineering staffing market is forecast to grow by 3% in 2017, buoyed by growth in Asia Pacific and Eurasia.

Whether your business is based solely in the US or has global operations, however, it is clear that a carefully planned strategy is essential for success. For example, oil and gas staffing firms that have diversified their service portfolio with power and renewables are performing relatively well. In this challenging business environment, firms that are the most adaptable to change, and not necessarily the largest or strongest, will flourish.