Tim Massey says there were three drivers that pushed Penmac Staffing Services’ 2019 revenue north of $100 million for the first time in the company’s history.
The CEO, who joined Penmac in 2013, says economic growth was chief among those drivers. But Massey also cites the company’s expansion into education, which is now about 10% of overall business, and expanding into Memphis, Tennessee.
“The other thing we did was just managing the business very, very well from a cost standpoint,” Massey says.
Penmac opened in 1988 with three staff members, 13 clients and a few hundred temporary associates. Today, Penmac has 32 offices in eight states, 140 in-house employees, more than 1,100 clients and over 25,500 associates employed in 2019.
Moving forward, Massey says the company will continue to look for opportunities to expand both geographically as well as in targeted industries, such as education.
“We would look for something very similar to do as well. Our approach has been more of an early adopter rather than a late bloomer,” Massey says.
Manufacturing, however, remains at the company’s core.
“We were founded in manufacturing and will always have a large presence in manufacturing,” Massey says, noting Penmac has built a reputation to convert the temporary jobs into full-time work. “We’re the bridge for that. We’re able to give them a very quick and easy way for them to get on board to try out the work to make sure they like it and make sure the client likes them and marry them into a long relationship.”
Penmac takes care of its in-house employees through retirement benefits in the form of shares in the company, as well as affordable health insurance.
In 2019, the firm also directly supported the Springfield community through more than $30,000 in cash donations and another $30,000 through in-kind donations and sponsorships. Organizations Penmac supported include Safe to Sleep, Great Circle, the Child Advocacy Center, Children’s Miracle Network and United Way.
Massey says the coronavirus pandemic has created new challenges for the company.
“Even before the virus, we were in a candidate shortage. In most markets we had orders we couldn’t fill,” he says, citing low jobless rates and a strong economy. “It made our job really, really tough. We’re still experiencing that and will experience that until people are ready to go back to work.”
But Massey expresses optimism that solid growth is ahead: “I think we got good news with 4.8 million jobs coming back. If we continue to have that growth, we can come out of that on the other side.”
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