FAST 50 2013: Low margins, strong growth at industrial, logistics and construction recruiters
23 January 2013
Sustained growth is difficult to achieve in one of the more fragmented sub-sectors of recruitment, according to Mark Kingston, senior executive at Boxington Corporate Finance.
Wed, 23 Jan 2013
Sustained growth is difficult to achieve in one of the more fragmented sub-sectors of recruitment, according to Mark Kingston, senior executive at Boxington Corporate Finance.
Nevertheless, recruiters in the industrial, logistics and construction category account for 8% of those in our 2013 FAST 50 league table.
The January 2013 issue of Recruiter magazine features on p32 the annual ranking of the fastest-growing private recruitment businesses in the UK produced in association with mergers and acquisitions advisers Boxington Corporate Finance. The ranking is based on compound annual sales growth as measured over the companies’ most recent three-year financial period.
Kingston says that growth in the industrial, logistics and construction sector is predominantly being achieved by players who have developed entrenched relationships with clients. Kingston says that Templine, whose On-Site business model makes them “almost an outsource partner rather than a traditional recruitment firm” is a prime example.
While good top line growth can be achieved within the sector, Kingston cautions that the market is notable for low margins, making sustained profitability challenging. This pressure on margins is accentuated by the high level of price competition, as well as the low level of candidate differentiation and the presence of intermediaries such as de Poel and Comensura, who are particularly active in the sector, he says.
Kingston notes that one exception is the driving sector where the market is regulated and candidates are more highly qualified. He adds that another notable feature is the “complete lack” of an international dimension. “Industrial is likely to remain a local market, with building national coverage in UK being a top priority.
Industrial, logistics and construction recruiters on the FAST 50:
Sustained growth is difficult to achieve in one of the more fragmented sub-sectors of recruitment, according to Mark Kingston, senior executive at Boxington Corporate Finance.
Nevertheless, recruiters in the industrial, logistics and construction category account for 8% of those in our 2013 FAST 50 league table.
The January 2013 issue of Recruiter magazine features on p32 the annual ranking of the fastest-growing private recruitment businesses in the UK produced in association with mergers and acquisitions advisers Boxington Corporate Finance. The ranking is based on compound annual sales growth as measured over the companies’ most recent three-year financial period.
Kingston says that growth in the industrial, logistics and construction sector is predominantly being achieved by players who have developed entrenched relationships with clients. Kingston says that Templine, whose On-Site business model makes them “almost an outsource partner rather than a traditional recruitment firm” is a prime example.
While good top line growth can be achieved within the sector, Kingston cautions that the market is notable for low margins, making sustained profitability challenging. This pressure on margins is accentuated by the high level of price competition, as well as the low level of candidate differentiation and the presence of intermediaries such as de Poel and Comensura, who are particularly active in the sector, he says.
Kingston notes that one exception is the driving sector where the market is regulated and candidates are more highly qualified. He adds that another notable feature is the “complete lack” of an international dimension. “Industrial is likely to remain a local market, with building national coverage in UK being a top priority.
Industrial, logistics and construction recruiters on the FAST 50:
- Ship Shape Resources
- Transline Resource Group
- Linear Recruitment
- Templine
- Assist Recruitment
- OSR Recruitment
- Extrastaff
- The Best Connection
- See also yesterday's breakdown of financial recruiters in the FAST 50, whose ranks doubled from three to six between 2012 and 2013.
- Read more FAST 50 news
