A Fragmented Industry that is Ripe for Consolidation
Globally, staffing companies generate about $416 billion in annual revenue, according to Staffing Industry Analysts (SIA). There are approximately 70,000 private employment services agencies around the world, with the top 10 companies accounting for about a third of industry sales. Overall, Europe is the largest regional staffing services market with 40% of annual revenue, followed by the United States.
Staffing 360 believes that a consolidation strategy is ideally suited for the highly fragmented temporary staffing industry, which has an estimated 15,000 companies generating less than $20 million in revenues in the United States alone. Firms specializing in professional staffing are particularly attractive as acquisition targets, because of the higher margins and longer term nature of their business.
For additional industry data, there is a white paper on the staffing industry available here.