With more than three decades under its belt, Penmac Staffing Services Inc. experienced its most successful year yet in 2018.
Founded in 1988, the Springfield-based professional staffing agency reached $133.1 million in revenue last year – nearly $20 million more than its 2017 total of $114.2 million, says Tim Massey, CEO. A large factor fueling that growth was the 2018 purchase of Brainerd, Minnesota-based Employment Resource Center Inc. – the local company’s first acquisition in its history. He says around $9 million of that increased revenue came from ERC.
The revenue bump also was attributed to organic growth in total associates employed and an overall increase in business, Massey says.
“We really saw spikes in business in the center part of Missouri, like Eldon and Jefferson City,” he says. “Also, our Memphis office had a really strong year and Springfield probably had its strongest year.”
The Springfield office, which is one of the company’s 34 locations in nine states, has always been the largest performer, Massey says.
“They easily accounted for 15% of the revenue,” he says, adding that percentage would be higher if not for the amount of growth companywide.
Over 27,000 associates were placed in 2018, the highest total ever by the company, Massey says. Around 25,000 associates were placed in jobs the year before.
Despite those record increases, manufacturing activity is slowing down a bit, he says, noting the economic impact of tariffs is being felt in general.
“There is some concern about a slowdown in the spend for labor across the board in the clients that we have,” he says, noting Penmac served more than 1,100 clients in 2018. “We’re really looking for ways to diversify in areas like education.”
That led to Penmac Education Staffing, launched in 2014, which partners with schools to provide quality substitute teachers, innovative training and benefits programs. It currently serves 18 school districts in the state, with more being added every year, Massey says. He notes it makes up around 15% of the company’s total revenue, up from about 2% in 2015.
Being service driven and giving back to the community has been a priority of Penmac since Patti Penny founded the company, Massey says. Aside from company staff being encouraged to volunteer, the branch offices are each given a budget to donate to local charitable causes.
The company is the presenting sponsor for the annual Handbags for Hope, a Great Circle fundraiser, and is involved in Suit Yourself Inc., a boutique that provides interview and workplace attire to women in need. Discover Center of Springfield Inc., Council of Churches of the Ozarks and United Way of the Ozarks also are among Penmac’s charitable focus.
“Patti has always been very entrenched in the community as well as Paula Adams, our president,” Massey says. “That’s really the mentality of the company. We drive it at the field level, not just corporate.”
The Bureau of Labor Statistics reported in May the all-items inflation index surged 8.6% over the past year, the highest increase since 1981.