A new report from Everee and ActivateStaff highlights critical challenges and opportunities in the $900 billion industrial economy. The 2025 Industrial Staffing Report, based on a survey of 310 U.S. hiring leaders in manufacturing, logistics, and construction, reveals how labor shortages, fragile client loyalty, and the push for modernization are reshaping the staffing industry. As companies face increasing pressure to fill roles quickly and reliably, staffing agencies must adapt to meet heightened expectations and leverage technology to stay competitive.
66% of industrial leaders report major operational impacts from labor shortages.
77% of companies have switched staffing agencies due to slow fills or poor quality.
97% of surveyed firms use temporary workers for seasonal peaks or temp-to-hire roles.
61% expect open roles filled within 48 hours; 13% demand under 24 hours.
Temporary staffing saves 27% of firms 2,000–5,000 hours annually.
Modernized agencies with real-time visibility and same-day pay retain clients.
The industrial sector faces persistent labor shortages, with 66% of hiring leaders noting significant operational disruptions. Despite this, 68% of companies plan to expand headcount in 2025, relying heavily on staffing agencies to bridge gaps. The report underscores that agencies must prioritize speed and quality to meet these demands, as 61% of companies expect roles filled within 48 hours, and 13% push for under 24 hours. Failure to deliver risks losing clients, as 77% have switched providers due to slow fulfillment or unreliable workers.
Temporary staffing has become a cornerstone for industrial firms, with 97% utilizing temps for seasonal peaks, absence coverage, or temp-to-hire pipelines. These workers often account for 5–20% of a company’s workforce. The report highlights significant ROI, with 27% of firms saving 2,000–5,000 hours annually by leveraging temporary staffing, equivalent to up to three full-time employees. This efficiency underscores why agencies that deliver reliable, high-quality candidates remain indispensable.
Modernization is reshaping client expectations. Agencies that offer real-time visibility into job and candidate status, minimize no-shows, and ensure compliance gain a competitive edge. As Rohan Jacob, CEO of ActivateStaff, noted, "The fastest-growing staffing agencies today aren't winning because they're the cheapest, they're winning because they're the easiest to work with." Tools like ActivateStaff’s workforce engagement platform and Everee’s automated payroll with same-day pay capabilities enable agencies to deliver seamless, digital-first experiences that align with client priorities.
While many companies express satisfaction with their current agencies, loyalty remains fragile. The report finds that 77% of firms have switched providers, primarily due to slow fills, unreliable workers, or poor communication. Agencies that invest in technology to streamline operations and enhance worker experiences—such as same-day pay to reduce turnover—can secure long-term client relationships and drive new business.
The 2025 Industrial Staffing Report emphasizes that speed, reliability, and modernization are critical for staffing agencies to thrive in a competitive market. By adopting advanced payroll and workforce management tools, agencies can meet client expectations, reduce operational friction, and position themselves as essential partners in the industrial economy. For the full report, visit everee.com/industrial.
ActivateStaff is an end-to-end, mobile-enabled platform-as-a-service designed to streamline workforce and operational management, eliminating the need for a standalone Applicant Tracking System (ATS). It integrates customer, order, applicant tracking, workforce management, timekeeping, scheduling, and assignment management into a unified solution. The platform seamlessly connects with a broad array of payroll, billing, and accounting systems, providing real-time data, intuitive interfaces, and scalability. It empowers businesses to efficiently match talent to opportunities, optimize scheduling, and enhance operational visibility across teams and locations.
Everee is payroll software built for staffing and gig work that allows companies to pay both W-2 workers and 1099 contractors as often as daily. With Everee's Flex Suite, managing payroll across multiple locations and rates is easy, even in the trickiest compliance situations. Companies can quickly integrate Everee with their own existing apps using Everee's REST APIs, webhooks, and embeddable components. Everee offers usage-based pricing, a pay card option, and payroll financing to help businesses save money and improve cash flow.
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