It’s no secret that 2025 was a tough year for staffing agencies. Outside of skilled trades, commercial staffing has been beat up for the better part of three years. That made the mood at the American Staffing Association’s Staffing World 2026 conference in Denver this October a welcome change. People were optimistic.
Our team spent the show in meetings and conversations with staffing agency leaders about where their businesses are headed. Growth and technology came up most, with artificial intelligence (AI) as the topic that stood out. ASA’s program leaned into both.
That optimism is modest but real. Agencies feel better that they’re starting to grow again, even if only slightly, and there’s more activity behind it. People are getting in front of more prospects and fielding more inquiries. After years in protect-and-defend mode, they’re back out in the world and engaging more actively, and you could feel it in Denver.
Here are five of my biggest takeaways from the show.
Expansion was a recurring theme. Several leaders we spoke with want to pursue markets outside the area they normally serve. One wanted to grow beyond their current state, and we heard from another leader from a different country who wants to expand into the US. This aligns with some of our recent research, which found that 19% of agency leaders said they plan to move into new states or territories.
Technology is helping with this. Virtual recruiting and onboarding are making it easier for agencies to expand into new markets. One leader we spoke with had no growth plan for 2027, but was at the show to learn. Our 2026 Staffing Agency Growth Checklist is a good starting point for planning what's ahead.
Everyone wants faster responses and more efficient processes, and agencies want their people focused on recruiting instead of administrative tasks. Many are looking into how AI can take over admin data entry.
Agencies come to events like this to find that competitive edge and stay current on the latest technology. Some agencies were shopping for technology vendors right at the show, with integration high on their wish list. The agencies furthest ahead are already using AI for outreach, sourcing, and screening candidates, and in some cases to take over some recruiter tasks.
I believe AI works best when it helps recruiters do their jobs better, while recruiters remain the ones building human connections with candidates. We’ve seen job seekers become increasingly frustrated that their applications never reach a real person. If AI takes on the admin work, recruiters have more time to look at resumes and engage with the candidate, giving agencies another way to stand out.
A simple message inviting job seekers who are tired of sending applications into a void to connect directly with a real person at your agency could be a powerful marketing tool.
One interesting conversation at the conference focused on the growing accessibility of software development. With AI-powered tools accelerating development, some staffing firms are exploring custom-built technology solutions that better align with their unique processes.
The takeaway wasn't that agencies should build their own software or avoid it altogether. Rather, firms should carefully evaluate the resources required to support a custom solution over time. Development is only one part of the equation. Long-term maintenance, integrations, user adoption, and ongoing improvements are equally important considerations.
For many agencies, success will come from choosing the technology approach that best supports their people, processes, and business objectives.
Margins and technology were where agencies seemed to feel the most pressure at the show, and both tie back to growth. The takeaway from our conversations was that the owners seeing the most success are keeping a close eye on their profit and loss statement so they know where they stand, what they can spend, and where they need to cut back.
ESSG’s survey of agency leaders backs up that pressure, with 34% naming climbing costs as their biggest challenge. It also helps explain a lot of what we heard at the show. When money is tight, faster processes, AI that takes over data entry, and the cost of building your own software all get a harder look.
Those numbers also show which accounts are actually worth the effort, since some of your biggest accounts may be earning you the least. That matters even more as an agency grows. Each new placement adds another paycheck to run, more insurance to carry, and more rules to keep up with, and all of it lands on margin. Knowing where your time and money go is the first step in deciding what to handle yourself and where a partner can help.
One of our clients at the show was thinking differently about the services and support they need to achieve their growth goals, and many of those priorities connected back to the themes above, including faster processes, less administrative work, and better technology. Another shared that it would be valuable to have broader insights into which staffing segments are expanding, while still protecting the confidentiality of individual businesses.
Conversations like these highlight the value of strong partnerships. As staffing agencies plan for the future, it's important for partners to continually check in, share industry insights, and explore new ways to help clients navigate change and pursue growth opportunities.
Our business reviews have reinforced this approach. They create space for strategic conversations that go beyond day-to-day operations, helping us better understand our clients' goals, challenges, and priorities. Often, those discussions uncover opportunities, resources, or perspectives that may not have otherwise come up, leading to stronger collaboration and better outcomes for everyone involved.
Across every session, one message stood out: staffing firms can't afford to stand still. From AI adoption to operational efficiency and workforce trends, agencies need to stay agile and embrace change to remain competitive.
As the industry continues to change, agencies must continually refine how they recruit, operate, measure performance, and support clients and candidates.
Evolving can mean a few different things for an agency:
For us, the show was a powerful reminder of the value of hearing directly from agency owners about why they’re there. It gives us a clearer picture of what to focus on in 2027 and how we can better meet their needs.
Looking for tools to help you plan for what's ahead in staffing? Download our 2026 Staffing Agency Growth Checklist. When you are ready, the ESSG team is here to help.