The past few years have been tumultuous and challenging, to say the least. Industrial staffing firms have navigated stay-home orders, the sharpest decline and fastest rebound in manufacturing activity ever recorded, and successfully delivered workforce solutions throughout. Moreover, in an environment where workers prioritize remote work, industrial staffing firms have continued to supply skills that by their very nature require a fully in-person presence.
Despite ongoing supply chain disruptions (renewed by war in Europe and China’s ongoing “Zero Covid” policy) constraining major manufacturing industries such as automotive, and an only nascent recovery in leisure and hospitality, industrial staffing has not just survived, but many firms in this vertical have thrived. Our recently published 2022 update to the list of Largest Industrial Staffing Firms in the US provides an overview of the competitive landscape for this vertical.
By our estimates, 57 firms generated at least $100 million in US industrial temporary staffing revenue in 2021, accounting for 84% of that year’s $30.5 billion market. The five largest firms represented 36% of the market in 2021, up from 34% in 2020, while the top 15 firms accounted for 59%, unchanged from 2020. The largest firms enjoy considerable market share and have consistently grown their market share over the past decade. Growth drivers for these companies include brand awareness, the ability to invest in new technologies and M&A activity. The graph below shows the market share trend for the five and fifteen largest industrial staffing firms since 2008.
Market share of the five and 15 largest industrial staffing firms
The five largest industrial staffing companies in 2021, by our estimates, were EmployBridge, Express Employment Professionals, Aerotek (Allegis Group), Randstad and TrueBlue. Altogether, the top five companies generated an estimated $13.1 billion in US industrial staffing revenue in 2021, accounting for 43% of the market. Rounding out the top ten, the next five largest firms are Manpower, Adecco, Kelly Services, Workrise and Recruit.
As we move past the Covid-19 pandemic, opportunities and challenges abound. Supply chain disruptions continue to prevent some manufacturing industries from achieving a full recovery, and leisure and hospitality are still only beginning to normalize. Efforts to combat inflation risk slowing the economy and causing a recession. However, despite some recent cooling, labor markets remain exceedingly hot and pay-rate growth remains historically high. Moreover, government infrastructure and manufacturing programs alongside manufacturing reshoring activity are already bolstering demand for industrial occupations, and we expect this will continue to provide support for years into the future.
Industrial staffing firms that are able to provide positive and smooth experiences for both talent and clients should enjoy ample opportunity to maintain and grow their position, even with current economic challenges and uncertainty. Growth potential may be particularly strong for staffing firms that are able to control turnover and retain their temps.
