With the manufacturing industry growth in recent years, the amount of jobs available through temporary staffing agencies has also increased. A large percentage of workers in warehouses and distribution facilities are hired through staffing companies as temporary help because of the ups and downs of the manufacturing industry.
CareerBuilder did a study on industries planning on using temporary staffing agencies to hire temp employees. IT was highest at 75 percent, but manufacturing was second at 59 percent of employers in that industry planning on hiring temporary workers. Even more specifically, it was projected that from 2017 to 2020 the percent change of temporary Machinists was 10 percent.
Higher Demand for Manufacturing Temp Jobs
The number of people employed with temporary jobs is at an all-time national high in general. Moreover, staffing agencies report a hefty number of temporary jobs fall in the manufacturing sector.
One of the main reasons for the rise in distribution and warehouse jobs available is due to the rise in e-commerce. With people ordering more and more online, there needs to be workers in those warehouses and distribution centers to manage and control the process of shipping orders to consumers (think Amazon).
According to an article in USA Today, manufacturers are increasingly employing temp workers to better manage fluctuating supply and demand. Although the jobs aren’t permanent, they offer employment to those in need of work. Manufacturing companies often use temp staffing agencies as a means to test employees before hiring them on full time. In addition, manufacturers have been implementing the use of robots for shipping and distribution, which is a main reason why they’re hiring for temporary positions rather than full time positions.
On the flip side, temp staffing in manufacturing usually pays less and offers little to no benefits to workers. Also, temp workers can be let go at any point in time. For companies, building a workforce of temp workers may also pose hardships for the long-term due to lack of experience.
What does it mean for Temporary Staffing Agencies?
If you own a temp staffing company, you may want to consider hiring new recruiters for your business that are specifically focused on the manufacturing industry. Let them become experts on the different options and jobs available and use their recruiting knowledge and experience to capitalize on this opportunity for your agency.
The trend towards temporary staffing may not be benefiting manufacturing workers for the long term, but it is helping those who own and work for staffing agencies. If your staffing agency is experiencing an unexpected boom in growth, learn how staffing and payroll factoring can help your company manage growth. A steady cash flow is needed to expand your temp staffing operation and increase your profits – factoring offers fast funding for staffing companies without the strict lending restrictions of banks.