In Staffing Industry Analysts’ September forecast update, we project revenue in the US engineering temporary staffing market to grow by 4% this year. This growth forecast is consistent with our projection from April and can be attributed to engineering wage inflation as opposed to significantly higher volumes.

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Important demand drivers remain intact in the form of engineering technologies with significant runway for enterprise adoption, including additive manufacturing, robotics and automation and the wider development of what is termed “industry 4.0.” High-level engineering talent remains in short supply, creating recruiting challenges but simultaneously enhancing the value of staffing services.

Although we anticipate positive secular drivers to remain intact in 2020, we forecast for a slight deceleration to 3% growth, reflecting broader cyclical pressures visible in consensus US GDP forecasts. Trade war uncertainty and slower global growth have both emerged as a headwind, as well as continued conversions of temporary workers to permanent status due to a tight labor market.

A key question facing the engineering sector, as well as the wider US temporary staffing market, is how long will trade tensions last, and does the macroeconomic slowdown represent a temporary pause or the start of a longer decline that could be part of a recession in the US economy?

SIA’s corporate members can access the full forecast report by clicking here. Our forecast report is updated twice annually, with the next report scheduled for April. Staffing firms in the engineering space, as well as those looking to enter this segment, can use this report to understand the market dynamics driving its growth and identify opportunities in this arena.