An increase in local revenues couldn't keep Manpower from sliding to No. 3 after its one-year reign as the largest temporary placement firm in L.A. County.

No. 2 Adecco, which more than doubled its local revenues, chalked the gains up to increases in major accounts with clients from the automotive, mortgage and manufacturing sectors in 2002, according to Mara Klug, its regional vice president.

Boosted by these large gains, the 25 largest temporary placement firms in the county reported combined 2002 revenues of $1.1 billion, a 5.7 percent increase from the year earlier.

Eight companies reported revenue declines, Five of those reporting lower revenues had less than $10 million in 2002 sales.

Several major players in the L.A. market, including Robert Half International and Kelly Services declined to break out local revenues and could not be included in the Business Journal rankings.

Nicole Taylor


Volt Services Group

Volt Services Group's $202.3 million in local revenues, while marking a 4.4 percent decline from the year earlier, made it the largest temporary placement firm in Los Angeles County.

Placing an average of 2,400 workers per week, Volt's 17 countywide offices specialize in administrative, industrial, accounting, technical and information technology workers. Companywide, Volt operates 200 offices in the U.S., Canada and Europe and had revenues of $1.9 billion for the year ended Oct. 30, 2002.

"Overall, 2002 was a difficult year for the staffing industry," said Senior Vice President Tom Daley. Volt was able to sustain local revenues by adding several large clients, he said. "Most of our existing clients are using less temporary labor. The only way to increase was through new clients."

Daley said he was seeing signs of an economic rebound. The firm's light industrial placements have increased, while administration, engineering and information technology remained relatively flat. "When there's a downturn, temps are the first to go, but conversely the first to get better," he said. "Generally, light industrial is first, because companies are ramping up production instead of beefing up infrastructure and R & D.;"

Daley expects business to increase this year, with light industrial remaining strong and engineering, administration and information technology starting to pick up. Still, he said, Volt's margins have been hampered by rising workers' compensation costs.

Nicole Taylor

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