The blue-collar tech gold rush is here

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Hi there,

Last week, I learned that the recovery from this pandemic-related recession has been different from previous slumps. Every downturn has led to the loss of factory jobs that never returned, but this time around, factories in the US have employed 67,000 more people than they did at the start of the pandemic.

This boom in factory jobs, triggered by inflation and supply chain bottlenecks, is reportedly unlike any we’ve seen in 50 years. A surge in similar jobs is reflected in Southeast Asia, too, if the brisk business coming in for blue-collar HR tech companies is anything to go by.

For instance, Indonesia-based MyRobin grew 11x in 2021, turning profitable this June after pivoting to focus on blue-collar workers. The company has already logged a 7x growth in revenue within the first eight months of 2022. Similarly, Staffinc, which also works with blue-collar workers, has grown 20x in revenue since 2019.

But, as my colleague Shadine details in this week’s Big Story, things aren’t necessarily as rosy as they appear.

While these firms might be the flavor of this season, when some companies are outsourcing blue-collar hiring and management to keep a lean workforce, this may not be the case long term. Besides, these firms are also up against a formidable challenge: building trust in blue-collar communities where exposure to digital platforms for work-related opportunities is likely low.

Talking about formidable challenges, what is a culinary startup to do when the price of fresh produce and meal ingredients is forecasted to go up? Indonesia-based Hangry has been efficient in its operations to date, notes my colleague Aditya in our other Big Story this week. But the company needs to maintain the same burn rate as last year, lest things don’t go as expected.

Meanwhile, in this week’s edition of Making Waves, Wavemaker Partners’ Paul Santos talks about taking a leap of faith and trusting founders who seem to have a method to the madness, however brow-raising. More on this soon.

— Nikita

THE BIG STORIES

1️⃣ Blue-collar HR firms rake in revenue, could weather recession

Image credit: Timmy Loen

Promising revenue and funding indicate a bright future for these specialized firms. But they have to address crucial issues first, like building trust.

2️⃣ Hangry’s revenue triples in 2021, operating margin improves

MAKING WAVES

NEWS YOU SHOULD KNOW

FYI