In our inaugural feature article for the Industrial Staffing Report, it seems fitting that we focus on the manufacturing industry, the birthplace of industrial staffing as it emerged following WWII some 70 years ago. Today, manufacturing accounts for roughly 40% of revenue in the industrial occupational segment of the US temporary staffing market, or $12.2 billion in 2014 by our estimates, and thus remains the largest industry vertical for industrial staffing. This translates to more than 400,000 industrial workers on assignment in manufacturing on any given workday — typically in a production, warehouse or skilled trades role. In this article, we examine current trends in four manufacturing sectors that appear to be particularly attractive for industrial staffing.

1. Motor vehicles and parts manufacturing: The motor vehicle and parts industry had another banner year in 2015, and ended the period with 918,000 jobs (representing 7.4% of all US manufacturing jobs) and 2.9% year-over-year job growth, as shown in the table below. The auto industry was aided by pent-up demand from consumers who had put off new car purchases during the last recession and subsequent tepid recovery. In addition, new car interest was boosted by infotainment features such as built-in navigation, telephone and music capabilities. Due to complex and time-sensitive supply chains, the motor vehicle and parts industry has relied on staffing firms as key suppliers. The strong growth trend may be facing some headwinds, however, as some observers are calling the cycle to be at its peak. For example, more than $100 billion in subprime auto loans were issued in 2015, highlighting the amount of debt that is fueling purchases. Nevertheless, the current cycle has proved to be a major boom for motor vehicles and their supply chain.
2. Food manufacturing: Food manufacturing is one of the largest manufacturing industries, accounting for 1.5 million jobs at the end of 2015. Job growth has been modest at a 1.4% year-over-year pace. Staffing agencies offer a strong value proposition to this sector where agricultural deliveries are variable and speed-to-market is critical (or else the product spoils). In addition, as many food manufacturers primarily serve the domestic market, the industry is less subject to offshoring of jobs. Growth is also being fueled by consumer shifts toward organic and locally-grown food products. Retail and commercial bakeries were a particular bright spot within food manufacturing, accounting for 230,000 jobs, and reporting 3% year-over-year job growth.
3. Furniture manufacturing: Furniture manufacturing is a smaller sector than motor vehicles or food, but still accounted for a sizeable 387,000 jobs at the end of last year, and an above-average job growth rate of 3.1%. Furniture sales have been boosted by rising disposable incomes and a significant recovery in home sales. Similar to motor vehicles and food manufacturing which get much of their sales from the domestic economy, furniture makers have benefited from the strong dollar which has reduced raw material costs but not hurt sales. New products, for example mattresses containing technology features, have also contributed to growth.
4. Breweries and wineries: Employment in the breweries and wineries industry (a segment of beverage manufacturing) has surged 15% over the past year to reach 127,000 jobs, by far the fastest job growth of any manufacturing industry with more than 100,000 jobs. Industry growth has been driven by rising disposable incomes, evolving consumer tastes for craft beers and wines, and the removal of some legal barriers that prohibited sales of alcohol across state lines. The brisk job growth in this sector suggests an opportunity for staffing firms.

In summary, manufacturing firms continue to be key clients of industrial staffing firms, with some manufacturing sectors growing faster than others. For more details on the current state of industrial staffing to the manufacturing sector, download our full report online.