As we reach the end of 2024, the lag that has been affecting the entire temporary staffing industry seems to be finally catching up with engineering. Results from the our most recent Pulse survey — published in November and showing staffing trends through October — indicate that median year-over-year revenue was stagnant after a year of low single-digit growth, while aggregate revenue declined 1%.

Despite this softness, respondents to the survey remain bullish with a net 10% forecasting that gross margin percentage will increase in the next six months, a net 25% predicting growth in bill rates and a net 46% predicting increases in new orders. Firms were evenly split about whether the number of unfilled orders — which increased over the last three months of 2024 to a net 24% of respondents — would increase going forward.

With all of this optimism leading into 2025, now seems a good time to look at five industries that could help power next year’s wave of engineering staffing growth:

1. Renewable energy

Solar power was undoubtedly one of the standout performers in 2024, and the industry is poised to make a reprise in 2025. The staffing boom that followed the initial influx of funding from the Infrastructure Reduction Act cooled in the second half of 2024, but continued — if more moderate — expansion is expected through 2025. One source of continued growth is likely to be the ongoing need for massive amounts of electricity to power data centers that support AI and other advanced software.

Sources estimate that electricity growth around data centers could range anywhere from 25% to 60% over the next three to five years, an astounding rate that many people believe our existing electrical infrastructure is not equipped to handle. Solar panels co-located at data centers are one option companies are considering to meet this unprecedented ramp-up in electricity demand.

2. Electric power utilities

Speaking of the electrical power grid: while there are ongoing efficiency improvements to AI queries, the IEA estimated in January 2024 that one ChatGPT query uses 10 times as much electricity as a Google search. As more and more people use ChatGPT for searches, stress on the existing electrical grid is increasing exponentially. Even with added power generation from new sources like renewables, existing power infrastructure will need an upgrade to handle future technologies.

Unlike AI, power is generally taken for granted by the general public. Existing electric infrastructure has not gained as much investment as it needs, and currently a lot of energy efficiency is lost during transmission and distribution. However, power infrastructure is increasingly moving into the corporate and public eye, likely leading to strong demand growth for power systems and transmission engineers, electric power engineers, electric engineers, and powerline installers, technicians and electricians.

3. Nuclear power

Power, power and still more power. Companies are looking closely at every viable solution to increase electricity generation, and nuclear — so recently an area of pullback across the US and, in fact, most of the world — is once more gaining attention. Although the industry faces entrenched negative public perception, that view is changing. A resurgence of nuclear power offers great opportunities for staffing. The industry is facing a shortfall of talent, and all roles in the industry—from nuclear engineers and techs down through to construction, maintenance and support—need very high levels of credentialing and command high wages as a result.

4. Aerospace and defense

Demand in aerospace and defense slowed for some staffing firms in 2024 despite very high levels of commercial air travel, ongoing strong consumer spending boosting the need for transportation of goods and a dicey geopolitical situation. Going into 2025, these pressures are expected to combine with an aging workforce, software revolution and ongoing difficulty with hiring new workers to provide new opportunities for staffing firms. Particular roles that are expected to benefit include aerospace, mechanical, electrical and materials engineers to design aircraft, aerospace and defense applications and new materials and electrical systems.

5. Robotics and advanced manufacturing

In the December 2024 Staffing Industry Report webinar, SIA Economist Michael Schultz presented on US factory investment, which came close to $20 billion (measured in 2022 dollars) by July 2024 — almost quadruple the 2005-2019 average of $5.6 billion. Investment from the Inflation Reduction and CHIPS Acts are combining with the long-term investments many large manufacturers have made into warehouse and factory automation. While new and improved facilities made possible by the current tsunami of funding are still in the planning or construction phases, the first of these factories is slated to come online in 2025, and many more are expected to open through 2026. As these facilities open, there will be a corresponding wave of demand for industrial, manufacturing, automatio, and quality engineers as well as for robotics technicians.

As we enter 2025, we’d love to hear your feedback about these and other growth areas. Consider participating in our bi-monthly Pulse survey or annual benchmarking surveys, including the Staffing Industry Benchmarking Consortium, to receive full proprietary reports with benchmarks and insights that can help propel your business forward. (Note that the Pulse survey and annual Largest and Fastest-Growing Lists are open to all staffing companies, while the Staffing Industry Benchmarking Consortium is only open to SIA corporate members.)