Tariff costs hidden (for now)

+VMS acquisition & temporary staffing collapse

June 16, 2025

Signal summary: Companies are playing financial hide-and-seek with tariff costs, Beeline just swallowed a major freelancer platform, and temp staffing continues its slow-motion collapse. Plus, the recruiting disaster that made a coworker walk out midday.

HERE’S WHAT HAPPENED LAST WEEK ↓

SIGNAL 1
Companies absorbing tariff pain (for now)

The scoop: Inflation crawled up a measly 0.1% in May, the fourth straight month below forecasts. But don’t get too excited. Companies are basically eating tariff costs like they're at an all-you-can-eat buffet, except the food is getting more expensive, and their belts are about to snap.

What's really happening:

  • Car and apparel prices dropped despite tariff punches

  • Warehouses are stuffed to the gills with stockpiled inventory

  • Toys and appliances did spike (the warning shots have been fired)

Fitch’s economists warn companies can’t shield consumers forever: "a rise in core goods inflation in the months ahead still looks very likely."

Signal → Strategy: Call logistics companies stockpiling inventory ahead of tariff hikes. They're basically hoarding like doomsday preppers, which means they need immediate temp workers for receiving, sorting, and storage operations. Strike while the panic-buying peaks. (Grab a sample cold call opening here)

SIGNAL 2
VMS giant swallows freelancer platform whole

Breaking: Beeline just acquired MBO Partners, because apparently charging for API access wasn't enough revenue optimization for one year. First, they monetized your integrations; now they're coming for your independent contractors. Next up: premium fees for using dark mode.

Why this deal matters:

  • MBO Partners has supported 500,000+ client projects since 1996 (they've been in the freelancer game since most people thought "gig economy" meant playing music at bars)

  • 72.7 million Americans are now independent contractors, up 42.3% since 2021 (turns out everyone wanted to be their own boss)

  • Beeline just became the only platform that can manage your entire non-employee workforce

Signal → Strategy: Time to investigate Beeline's competitors, who are probably scrambling like interns on their first day. Become their "freelancer specialist partner" for integrated solutions they can't build internally because their dev team is too busy vibe-coding the next TikTok for dogs.

SIGNAL 3
Temp staffing's slow-motion collapse continues

By the numbers:

  • Temp help services employment declined by -20,200 jobs in May

  • Industry revenue fell 14% in 2023, dropping another 10% in 2024

  • Back to 2014 employment levels of 2.7 million workers (we've time-traveled a decade, but nobody got the DeLorean)

The disconnect: Economy growing, temp staffing tanking. Classic disruption warning signs that most agencies are ignoring harder than a "Reply All" email.

Signal → Strategy: Time to pivot faster than a startup that just realized nobody wants their blockchain-powered pet food dispenser. Consider project-based consulting services for existing temp clients. Package 3-6 month engagements for digital transformation, process improvement, or compliance projects. Same clients, better margins, less soul-crushing commodity competition.

RECRUITING CONFESSIONAL
How a Loose Lid Ruined My Coworker's Day

Recruiting confessional is a weekly series featuring the recruiting stories you're not supposed to tell publicly, shared anonymously. Got a story? Submit it here.

The Setup: Year and a half into industrial staffing. We handled drug testing in-house - candidates got a cup, used our bathroom, left the sample on the back of the toilet. What could possibly go wrong?

The Disaster: My coworker went to collect a sample and called for backup: "Hey, can you come look at this?" Second coworker went to pick up the cup. Plot twist: candidate hadn't screwed the lid on properly. Cup dropped, exploded everywhere - urine all over his clothes, face, everything.

The Aftermath: Guy was absolutely livid. "I'm done for the day" and walked straight out. Came back the next day but was still fuming.

The Lesson: Always check that lids are secure before moving samples. Better yet, don't pick them up and make the candidates dispose of them after.

SHARE THE SIGNALS
3 people you should share these signals with:

  1. Your sales rep who’s bombing on cold calls

  2. Your buddy who sells competing VMS solutions

  3. That temp agency owner praying for “normal’ to return