Los Angeles County’s temporary employment industry continues to boom as the region’s economy improves.
The 25 companies on this year’s List of temporary placement firms all reported revenue increases. The firms collectively racked up $838.2 million in revenues through 1996, compared with $779 million the previous year.
The boom in temporary placement began between 1993 and 1994, when revenues jumped 24 percent among companies on the List. There was an 11 percent increase in 1995.
“The economy has been really helping us out,” said Paul McDonald, Southern California president of No. 1-ranked Accountemps. “Downsizing is now pretty much over, and companies are reluctant to begin staffing up to previous levels. They don’t want to overstaff, and temporaries are a solution.”
He said the industry’s increase in revenues is the result of a fundamental change in the way companies hire. Nowadays, efficiency is being boosted by contracting services on an as-needed basis instead of hiring full-time.
Accountemps specializes in accounting and bookkeeping professionals. Its 1996 revenues were $107 million.
The biggest gainer on the List over last year was Chipton-Ross Inc. The Manhattan Beach-based firm, which specializes in technical professionals, went to 14 from 23 last year. The company made $16.5 million in revenues in 1996, up about $6 million from 1995.
New to this year’s List was Kelly Services, which debuted at the No. 4 spot. The company, which fills mostly clerical and administrative jobs, had $79 million in revenues in fiscal 1996.
Other new temporary firms on the List were PDQ at No. 11, Act l Personnel Services at No. 15, Olympic Staffing Services at No. 18, On Assignment Inc. at No. 21, PeopleWare Technical Resources Inc. at No. 22, Temps On Time Inc. at No. 23, Pasona Pacific at No. 24, and Recruiters West at No. 25.
These new additions aren’t new companies, but had not previously released revenue information to the Business Journal.
One temp agency on the List made news earlier this month by being acquired. Accountants Overload, which came in at No. 12, was bought by Atlanta-based Olsten Corp., a national temporary staffing company.
Accountants Overload, which had $18.5 million in revenues last year, will join Olsten’s financial division, and is expected to take its parent’s name, according to Accountants Overload CEO Richard Lewis.
“This is an incredible opportunity to partner with Olsten as it strives to become a world leader in this specialized niche,” said Lewis, who will manage the financial division of Olsten.
