Another day, another blue-collar dollar. Staffing firm TrueBlue specializes in providing general laborers on short notice for short-term jobs in fields such as construction, hospitality, landscaping, and transportation. The company offers general labor staffing services from more than 690 branches throughout the US and Canada, mostly under the Labor Ready brand. Other units, operating through branches, include Spartan Staffing (light industrial temporary services), CLP Resources (skilled construction trades), and Centerline Drivers (temporary and dedicated driver placement). TrueBlue mainly serves companies residing in the services, construction, transportation, manufacturing, retail, and wholesale sectors.
TrueBlue operates through two reportable segments. Staffing Services (96% of total sales) provides a wide range of blue-collar staffing services including general labor, light industrial, skilled trades, aviation, transportation mechanics, technicians, and drivers. Its Managed Services segment provides recruitment process outsourcing services.
The company has a network of some 690 branches across all 50 states, Puerto Rico, and Canada, plus more than 200 on-premise locations at customer's facilities. The US generates about 97% of its total sales.
Sales and Marketing
The company serves a broad range of industries that include construction, energy, manufacturing, warehousing, distribution, waste, wholesale, retail, transportation, aviation, and hospitality. Its top 10 largest customers accounted for 26% of its total revenue for 2015. One customer, Amazon, represented around 13% of its net revenues.
TrueBlue has achieved extraordinary growth over the last several years, with revenues climbing 24% from $2.2 billion in 2014 to a record-setting $2.7 billion in 2015. The historic growth was primarily attributed to key acquisitions. It also experienced organic growth across most of its geographic and industry segments.
The construction industry saw considerable growth in 2015 driven by improving momentum in both residential and commercial construction as well as green energy projects. Rapid growth in online commerce resulted in stronger demand for warehousing and distribution services. In addition, demand by the transportation industry for driver workforce services continued to see double digit growth in 2015.
TrueBlue's net income surged 8% from $66 million in 2014 to $71 million in 2015, another company milestone. The company's operating cash inflow also jumped by 52% during that same time period.
TrueBlue continues to evaluate opportunities to expand its market presence for staffing services. It achieves this by adding new physical locations and expanding existing locations to provide its full range of blue-collar staffing services.
Mergers and Acquisitions
TrueBlue has used acquisitions to generate milestone revenues and to diversify its mix of services, particularly in the light industrial and skilled labor staffing sectors. In 2016 it acquired the recruitment process outsourcing (RPO) business of Aon Hewitt for a cash purchase price of $72.0 million. The deal enhanced its PeopleScout's (which it inherited through its Seaton acquisition in 2014) operations, making it a major global RPO provider with more than $150 million in annual revenue and 300,000 annual full-time placements.
In 2015 TrueBlue acquired workforce efficiency specialist SIMOS Insourcing Solutions, expanding its workforce management group to deliver even more powerful talent services. In 2014 the company grew significantly through the purchase of staffing service provider Seaton. The deal included Seaton's PeopleScout, Staff Management SMX, HRX, and StudentScout service lines.