In March, Harbor View attended SIA’s Executive Forum North America in Miami. To begin our recap, we feel compelled to note just how impressed we are, every year, by the earnest participation and engagement from staffing professionals traveling in from far and wide. The event is always an industry bright spot, marked by a vibrant exchange of ideas, insights, and best practices – and consistently sensational reporting.
Now – what the #$@& is going on with staffing? Our thoughts and commentary around some of the key topics covered, primarily in the keynote presentation delivered by SIA’s Barry Asin and Timothy Landhuis.
Recovery?
Have you heard? It’s been a “challenging few years” in staffing. And, guess what, the “tough times” refuse to go away in 2025. This was dramatically punctuated by the downwardly revised spend forecast unveiled in the middle of the conference. You could hear the collective groan of dejection, though everyone knew it was coming. Q1 2025 was supposed to be the start of, at the very least, a modest recovery. But engines aren’t quite kicking on, and a whole host of factors is exacerbating the situation (trade policy, immigration policy, government cut-backs, etc.), leaving everyone in an unsettling zone of uncertainty.
A Different Ballgame
To quote Godfather III, “Our true enemy has not yet shown his face”. You don’t get a sustained downturn like we’ve seen in staffing without multiple contributing factors. The broader macroeconomic environment? Soft. Labor market? Wonky. Course-correction and normalization after a few years of booming business? You bet. Some temp jobs being knocked out by automation / AI? Surely. But the staffing landscape is also fundamentally changing via increasing legitimate competition from alternatives: SOW consulting, staffing platforms, direct sourcing, independent contracting, etc. The presence of “digital self-service” certainly can’t be ignored – not when 7 out of the 10 largest firms globally now own a platform brand!
So, What’s Next? What Are My Options?
I’ve heard one industry executive say, “We’re not even sure what we’re recovering to” – and it may very well be the case that the switchboard never lights up in exactly the same way ever again. Staffing companies will have to look different to be competitive going forward, and SIA has put forth a range of options and strategies for firms to consider:
Omni Channel Recruiting
The only thing staffing companies can’t do is wait for a “return to normalcy”. But don’t have these strategic or planning conversations in a vacuum – get outside perspectives. Talk to a business consultant. Talk to a sales consultant. Talk to a technology consultant. Talk to an accounting firm – clean up and dashboard your financial reporting so you know what’s going on at all times across key functional areas of your business.
Finally, the possibility of an M&A transaction should be on the table. “It’s simple – just transition to be being a marketplace”. Well, we all know it’s not that easy. This age of anxiety, technology transformation, and industry change – it can be a lot. Joining forces with a larger organization could be the best way to maximize shareholder value and set your team up for long-term success. Buyers are always buying, and there’s a good chance your commercial expertise … or your geographic presence … or your client base (maybe all 3!) have immense strategic value to someone. And, if you work with the right advisor, it doesn’t have to be a frustrating waste of time where you end up with an insulting valuation and compromised deal structure.
If you would like to talk further or get recommendations on various consultancies you can speak with, please feel free to reach out to Jonathan Hollis or Nick Mignone.
DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
