September 23, 2019
Staffing Industry Analysts has lowered its 2019 forecast for US industrial staffing revenue growth to 1% from its projection of 4% growth last April.
Driving this slowdown are tariffs and trade uncertainty with China – resulting in fewer manufacturing exports and higher prices for imported raw materials and parts – along with slower global economic growth and a slackening pace of growth in bill rates and pay rates. Revenue from manufacturing clients is a significant share of industrial staffing sales, accounting for as much as 40% in recent years.
Slower manufacturing job gains during the last six months are another contributing factor. The US Bureau of Labor Statistics reports that jobs were added in computer and electronic products and plastics and rubber manufacturing, but down among manufacturers of machinery, primary metals, furniture, wood products, printing, and petroleum and coal products.