Business services firms focus on tech and workforce in time of uncertainty

Business service firms are operating in an uncertain economy. The one aspect that is certain to be crucial is the workforce, as labour is critical to business service firms. So determining how to best use the workforce is key. Companies are embracing technological innovations, which can lead to significant benefits, but this requires careful management to ensure employees are supported and upskilled to adapt to new roles.

Marketing and advertising firms

A dynamic workforce continues to be crucial to success for marketing and advertising firms, particularly given the uncertain economic environment. One factor is the ongoing discussions around tariffs. While advertising firms are less likely to feel a direct impact from tariffs given their service-based offerings, the effect of tariffs on consumer spending and the economy will affect advertising spend from companies. One of the first cuts a business may choose to make is its advertising budget. In a sector that is already so closely aligned to the U.S. gross domestic product, any additional economic pressures will limit growth.

How do marketing and advertising firms achieve success? The short-term answer is to enable their workforce.

The integration of artificial intelligence and generative tools in digital marketing is transforming how campaigns are created and managed. These technologies automate content creation, data analysis and customer targeting, allowing marketers to focus on strategy and creative development. According to Emarketer, the top use cases for streamlining business-to-business marketing are content creation and optimization, followed by data-driven insights like customer segmentation. This shift enhances productivity and enables more personalized and effective marketing campaigns.

By demonstrating this capability, marketing and advertising firms may withstand some of the economic pressures they are facing, as they can prove value creation for their end customer. This is especially true in an environment where there are a number of opportunities, such as data management or digital marketing. According to Emarketer, digital ad spending is projected to exceed 75% of total media ad spending by the end of 2025. This shift is driving the need for digital skills and experience. The result will be a workforce engaged in more data-driven and innovative advertising strategies.

AI and automation at the heart of every business discussion will ultimately take over tasks like data analysis and content generation, if they haven’t already, so some of the traditional roles in marketing and advertising firms may be at risk. However, this also creates opportunities for new roles focused on managing and optimizing these technologies. Technology is only as good as the data being used, and the people leveraging it.

Workforce solutions

The battle is not just finding labour, but finding the right labour. The significant shifts in the demands of many roles has led to significant upskilling costs at companies across the globe.

For this reason, many companies may look to a staffing firm to find the right personnel, whether temporary or permanent. Others may hire a human capital management company to take on the back-office work so the business can focus on value-added activities.

A workforce solutions company focused solely on people may have a larger appetite to lean into initiatives that upskill its workforce. We’ve already seen staffing firms at the forefront of adopting digital tools and automation to manage workforce challenges and improve operational efficiency. This includes using AI for candidate matching and predictive analytics to forecast staffing needs. These technologies enable staffing professionals to focus on strategic client relationships and talent development.

The integration of technology hasn’t yet paid dividends for staffing firms, as we’ve seen continued declines in temporary help year over year. The Bullhorn Staffing Industry Indicator, a weekly economic report that tracks trends in U.S. temporary staffing hours, shows that the decline is real, although less pronounced in commercial staffing than in professional staffing.

Staffing firms’ technology initiatives will pay dividends in the long run. But in the short term, firms may want to diversify their portfolio to include both temporary and permanent staffing to optimize costs or add capabilities in sectors that are more stable in the current economy, such as life sciences, education or technology.

Facility services

The future of facility services is data-driven, proactive maintenance. A company not already taking steps in this direction will quickly fall behind the competition.

This sector has seen the implementation of Internet of Things sensors and AI-powered analytics to help predict equipment failures, reducing downtime and maintenance costs. This enables facility management teams to transition from reactive repairs to predictive strategies, enhancing asset longevity and cost savings. These advancements enable facility managers to focus on strategic tasks, such as optimizing energy usage, rather than routine maintenance activities.

Companies are also integrating facility management software with workplace tools to provide a seamless user experience. This is a clear shift from a nice-to-have to an essential component for these companies. As facilities service companies continue to leverage digital solutions, they will enhance efficiency, employee satisfaction and productivity. Leveraging automation and AI-driven workflows also allows the workforce to focus on strategic projects rather than routine tasks. 

Some of the automation of these previously routine tasks will ultimately reduce the need for manual labour. This has led to an increased demand for workforce upskilling to address potential labour challenges. Therefore, investing in training and reskilling existing staff is crucial to maintaining a capable and adaptable workforce in this sector.

The takeaway

Marketing and advertising firms should keep their workforce top of mind, providing people with the tools and skills necessary to drive value for customers during this period of economic uncertainty.

Workforce solutions companies should continue to invest in their people and technology. Companies that make smart investments now will be best positioned to take advantage of the new opportunities that arise when the economy stabilizes.

Facility service companies must upskill their existing workforce to ensure continued success in a more digital environment. While these firms are already successfully implementing tools to enhance efficiency, the key to long-term success will be ensuring people know how to best use them.