The staffing industry is characterized by a large number of competing companies
in a fragmented sector. Major competitors also exist across the sector, but
as the industry affords low barriers to entry, new entrants are constantly
introduced to the marketplace. Currently there are approximately 18,000
staffing companies in the United States, and this number represents a
significant decrease from the approximately 33,000 staffing companies that
existed prior to 2010.
Currently, direct competitors of the Company include, but are not limited to,
Kimco Staffing, Tri-State Staffing, Diamond Staffing, Ascend Staffing, Job
Brokers, Select Staffing, Kelly Services, Personnel Plus. There are additional
competitors that include any staffing company that would choose to compete in
the light industrial arena or clerical business and in the current locations
of the Company. The direct competitors listed above are currently servicing
many of the same clients that the Company services and rely upon. The criteria
for which these companies compete are based on price and service levels.
Within the staffing industry, the Company is in a middle tier position of the
competitive matrix. The top layer of competitors is a few large corporate
staffing and employment companies which have revenues of $75 million or more.
The next (middle) layer of the competition consists of medium-sized entities
(such as the Company) with revenues of $1 million or more. The largest portion
of the marketplace is the bottom rung of this competitive landscape consisting
of small individual-sized or family-run operations. As barriers to entry are
low, sole proprietors, partnerships and small entities routinely enter the
industry.
Company Description
The Company provides recruiting and staffing services for temporary positions
in light industrial, distribution center, assembly, and clerical businesses.
The Company’s client customization model allows it to integrate its services
to its client-specific needs and thereby providing clients with
the highest
level of customer service. The Company strives to devote adequate time and
attention to understand both the needs of its clients and the capabilities of
its employees so that the Company can identify the best suitable matches
between client needs and employee abilities. The Company is dedicated to
achieving a high level of service for all of its clients and considers itself
to be a loyal partner to meeting client demands. In this regard, the Company
seeks to position itself not only as a pool of employee for its clients, but
also as a dedicated business partner that understands its clients’ businesses
and needs.
Services provided to clients by the Company include recruiting, payroll, all
state and federal taxes, worker’s compensation coverage, and screening and
managing of clients’ contingent work force. The Company provides comprehensive
screening and electronic verification (for federal employment eligibility
requirements) for all employees. The Company also conducts reference checks
of employees to ensure that the employers receive accurate and useful
descriptions of employees’ backgrounds and experiences. The Company also
operates a risk management department that helps client mitigate losses by
implementing sound and effective risk management procedures at client sites.
Clients receive these risk management services at no cost, helping them to
reduce their own business risks and expenses.
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First Rate Staffing Corporation, a Delaware corporation (the “Company”),
provides recruiting and staffing services for temporary positions in light
industrial, distribution center, assembly, and clerical businesses. The Company
was incorporated in the State of Delaware in April 2011, and was formerly known
as Moosewood Acquisition Corporation (“Moosewood” or “Moosewood Acquisition”).
In May 2012, the Company implemented a change of control by issuing shares to
new shareholders, redeeming shares of existing shareholders, electing new
officers and directors and accepting the resignations of its then existing
officers and directors. In connection with the change of control, the Company
changed its name from Moosewood Acquisition Corporation to First Rate Staffing
Corporation.
On November 9, 2012, the Company entered into merger agreements with each of
First Rate Staffing, LLC, a California limited liability company (“First Rate
California”), and First Rate Staffing, Inc., a Nevada corporation (“First Rate
Nevada”), in separate mergers (collectively, and together, the “Mergers”) that
were concurrently completed on November 13, 2012. The purpose of the Mergers was
to facilitate and prepare the Company for a registration statement and/or
public offering of securities. Prior to the Mergers, First Rate California and
First Rate Nevada were under common control of the same group of shareholders.
First Rate California was formed in April 2010 in the State of California. Since
its inception, First Rate California has provided recruiting and staffing
services for temporary positions in light industrial, distribution center,
assembly, and clerical businesses to clients in California.
First Rate Nevada was formed in March 2010 in the State of Nevada and is
registered to do conduct business in the State of Arizona. Since its inception,
First Rate Nevada has provided recruiting and staffing services for temporary
positions in light industrial, distribution center, assembly, and clerical
businesses to clients in Arizona.
Prior to the Mergers, Moosewood had no ongoing business or operations and was
established for the purpose of completing a business combination with target
companies, such as First Rate California and First Rate Nevada. As a result of
the Mergers, each of First Rate California and First Rate Nevada has merged
into and become a part of the Company. The Company, as the surviving entity from
the Mergers, has taken over the respective operations and business plans of
each of both First Rate California and First Rate Nevada.
The Company is located at 2775 West Thomas Road, Suite 107, Phoenix, Arizona
85018. The Company’s main phone number is (602) 442-5277.