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3/6/2008 — Some Cutbacks Benefit Troy Headhunting Firm

Diversified Industrial Staffing sees hike in job orders as companies cut work costs or downsize

Christine Snyder, Special to The Detroit News

For some companies, layoffs, buyouts and downsizing have their benefits.

Diversified Industrial Staffing, a blue and gray collar headhunting company, reports that 2007 year was their strongest revenue year ever. And at Acro Service Corp., which provides professional, technical and some gray and blue-collar workers to companies, they've seen a dramatic increase in job orders over the past two years.

To cut costs and downsize to match lower demand, many companies are turning to staffing companies to provide their work force and employee services. Troy-based Diversified--which supplies employees with benefits, thus being the "actual employer" when they provide staff--says they are growing because more companies can't or won't provide benefits and want to avoid legacy costs. "We are finding more and more of our customers nowadays that don't want to add internal headcount," says Todd Palmer, president. "All our employees get benefits day one working with us the client isn't under pressure to bring them under the payroll."

Jim Clark, executive vice president of Livonia-based Acro, says their growth is in response to employers' increased demand for a flexible work force. "What the automotive and tier ones have gone through is to recognize the value of having a flexible work force and being able to add to it and subtract from it as situations require." The fallout, says Clark, is that many positions tend to be lower-paid and employees are less loyal. "We see at least a mild negative attrition; that is voluntary termination." According to Palmer, as far as blue and gray collar workers are concerned, companies tied to aerospace and foreign automotive are doing well and adding to their staffs. Companies tied to the Big Three are not. Production shops also have been doing poorly in response to increased offshore outsourcing.

Gray collar workers can sometimes be referred to those working well into their 60s, because they can't afford to retire, or to an underemployed white collar worker. In manufacturing jobs, Palmer says he does see growth and potential in prototype shops. "If you are somebody who has a patent and they can make this product and they need staffing assistance, they are doing well." In fact, Michigan ranks as fifth nationwide in total patents issued, according to the Department of Labor and Economic Development. Clark has seen increased demand for technical and professional positions in the domestic automotive market and health care fields. Like Palmer, Clark sees little demand for manufacturing jobs tied to domestic auto companies. "There is no question there has been a significant reduction in the manufacturing end of things. We certainly follow trends and (in the Detroit market) manufacturing is on the list." Clark says, however, that there are manufacturing jobs available outside Michigan.

"We have had a great deal of difficulty finding candidates willing to relocate. We can find qualified Michigan talent, but they don't appear to want to move."

So what jobs are strong in Michigan's ailing economy? CNC Programmers. "There is a great demand for them and there won't be enough of them in 10 years," says Palmer. CNC is the computer programming of machines for manufacturing processes. Skilled welders. Palmer cites a tremendous need for this skill set in fabrication shops, construction and other industries. Truck drivers. There is a nationwide shortage of long distance truck-driving positions, and Michigan is no exception, adds Palmer. Engineers. Michigan ranks fifth in amount of available engineering jobs in the nation. "There is certainly a shift toward more general engineering jobs," says Clark IT professionals, technicians. "We have an increase in the clients' desire for very, very specialized skill sets," Clark says, adding that the demand is strong in health care sector nationally and locally. Click here to see the original article.