Employment agencies in Orange County again marked substantial revenue growth in 2011.
This week’s Business Journal list shows the 20 largest employment agencies in OC notched a collective 7% uptick in revenue from a year earlier to $749 million. That compares with top local agencies’ 12% revenue increase in 2010 and 20% decline in 2009.
Staffing firms are a strong indicator of the job market’s health, as many companies turn to them for temporary help before hiring their own workers for permanent placement.
“We’re definitely coming out of the recession, and the staffing industry is an indicator of what’s ahead,” said Russell Stein, vice president of Irvine-based PTS Staffing Solutions, No. 12 on the list. “Because the staffing industry is seeing solid growth, it’s a good precursor for everyone else.”
Eleven OC revenue figures came from the agencies and nine were Business Journal estimates. Each of the 11 reporting agencies marked a revenue increase from the previous year.
Two Debuts
Two agencies made debuts on the list this year, while two others were removed due to a lack of response over the years.
Staff hiring at employment agencies was up 4% in 2011 from a year earlier, to 868 workers.
Worker placements were off 2%, at 25,107, among 10 agencies that disclosed placement totals for 12 months through March and for the year-earlier period.
No. 1 on this year’s list—which was ranked by revenue—was Hanover, Md.-based Aerotek Inc. It took the place of previously top-ranked Adecco Employment Services Inc., part of Switzerland-based Adecco Group.
Aerotek had a 20% increase in its 2011 OC revenue from last year, bringing its total to $91 million. Adecco was No. 2 with a Business Journal estimate of $80 million for its 2011 OC revenue.
Last year the Business Journal named Aerotek’s Santa Ana staffing office as one of the Best Places to Work in Orange County. The annual awards program recognizes top companies based on employer reports of workplace policies, practices and benefits as well as comprehensive employee engagement and satisfaction surveys.
In 2011 the Santa Ana location worked with more than 250 clients to fulfill staffing needs. Aerotek reported placement of 5,500 OC temporary workers for the 12 months through March of this year, an increase of 22%.
Aerotek specializes in industrial, technical, engineering, scientific, environmental, energy and professional job placement.
Biggest Gain
PTS Staffing had a 55% increase in revenue to $26 million, the largest increase of any company on the list. The increase moved the company up three spots from last year.
The increase comes after a tough couple of years when the agency fell victim to the recession. A difficult 2009 caused its OC revenue to fall by 35% and the number of temporary workers placed was down by 21%.
PTS has about 20 years of experience with providing staffing to the energy industry, specializing in engineering, information technology and professional-services job placement.
As the economy improves and business picks up, several energy projects that were deferred during the recession are getting restarted, Stein said.
“There’s this need that’s been sleeping for a few years,” he said. “Companies want to stay more nimble, and are more interested in supplemental staffing with project-based work.”
Job Openings
PTS currently has more than 100 openings for experienced engineering, IT, and other professional personnel to fulfill its clients’ project needs. The upswing has made it possible for PTS to add significantly to its own staff, Stein said.
PTS added four employees to its staff in 2011, and it increased the number of temporary workers placed in OC by 53%.
Of the top five agencies on the list, only one is based in OC. Orange-based Roth Staffing Cos. is No. 5 on the list with $52 million in OC revenue, a 9% increase from the previous year.
The agency is comprised of Ultimate Staffing Services, Ledgent and Adams & Martin Group and specializes in office, accounting, finance, technology and legal job placement.
Roth had 92 workers in its 10 OC offices, an increase of 12% from the previous year.
New to the list this year was Tustin-based Structure Networks Inc., ranked No. 19 with $14 million in OC revenue.
Structure Networks had a 15% increase in revenue from a year earlier and a 14% increase in temporary workers placed.
Irvine-based Creek Systems Inc. debuted at No. 20 on the list. The company had $5 million in OC revenue; it increased the number of temporary workers placed by 50% last year.
The biggest increase in temporary worker placement during 2011 was Cincinnati-based Staffmark, No. 18 on the list. The firm increased its OC temporary workers by 59% compared to a year earlier.
Staffmark specializes in light industrial and clerical placement.
Download the 2012 OC’s LARGEST EMPLOYMENT AGENCIES list (pdf)
