Here at Staffing Talk we very rarely talk about the global staffing realm. Sure, our Staffing News of the Day encapsulates all the major happenings, but our content mostly opts for covering North America. It’s where we are and it’s what we know, so it makes sense. But with technology continuing to push the industry’s players into competition with others around the world, ignoring the burgeoning global markets would be foolish. So today we’re giving you a little roundup, for those of you thinking about investing in overseas companies or expanding your operation.
Right now, North America comprises about one-third of the global staffing market, based on revenue numbers compiled by Staffing Industry Analysts. Europe takes roughly another third and Asia (22%), South America (4%), Australia (4%), and Africa (2%) comprise the rest. But if you look at the forecasts of growth on a country-to-country basis, it tells a very different story.
With Europe expected to feel a recession very similar to ours this year, countries like the UK, Australia, Netherlands, and Belgium are expected to flatline in staffing growth, while Portugal (-5%), France (-7%), Germany (-14%), and Spain (-16%) will drop like rocks. On the flip side, industry pros anticipate markets like Columbia (20%), India (16%), Norway (14%), China (14%), Denmark (12%), and Sweden (10%) to kick some serious butt.
But here’s something else to consider. With all the mergers and acquisitions of recent years, the top 15 firms comprise nearly half of the total market share. In short, the staffing industry is getting more and more concentrated.
And if there’s one company to keep an eye out for in terms of growth, it’s Recruit. This Japanese company, which started in 1963 and over the years has tackled real estate and print media as well as “job matchmaking,” has shifted its focus in recent years to be mostly human resource provisions (staffing) and modern media (free pubs, websites, and mobile).
Other than an insider trading scandal in the late 80s (that ousted several prominent politicians from office and prompted the retirement of Recruit’s founder), the Tokyo company has experienced unprecedented success. Recruit’s reach is enormous, and other companies under their brand umbrella include Staff Service, JOBDIRECT, RGF, CSI Companies, Staffmark, and Indeed.
This time last year, Recruit was the seventh largest company in the staffing industry. Six months later, they announced that they plan to go public within the year. Then they purchased Advantage Resourcing (12th largest globally). So with those two things combined, don’t be surprised if this time next year Recruit breaches the top three (Adecco, Randstad, and Manpower).