This industry's performance largely hinges on the ups and downs of corporate profit
Los Angeles, CA (PRWEB) August 21, 2012
The Company Research Services industry includes firms that aggregate data, reports and articles from news publications, financial data, personnel data and other types of company-relevant information and offer this collection to clients. The rapid increase in the use of the internet, related technologies and market intelligence in the workplace allowed the industry to grow aggressively over the last decade. Nevertheless, during the five years to 2012, the financial crisis, subsequent recession and lackluster recovery severely diminished growth. According to IBISWorld industry analyst Nima Samadi, demand conditions improved in 2010 and through 2011, but sustained weaknesses in US and European economies, competitive pressures in the research market and changes to internet search platforms continued to depress growth. Over the five years to 2012, revenue is anticipated to decline at an average annual rate of 0.1% to $865.5 million, despite 1.6% growth from 2011 to 2012.
The industry is largely tied to changes in corporate profit, since high and increasing profit frees up cash for businesses to invest in ventures and projects that require company research as part of their due diligence or market research. In 2007, corporate profit declined, for the first time since the 2001 recession. Corporate profit continued to shrink in 2008 and 2009, led by large losses at financial firms because of mortgage defaults. Having cut deeply into their payrolls, corporations squeezed more productivity from fewer workers in 2010 allowing corporate profit to surge in 2010. Revenue for the Company Research Services industry grew 5.3% in 2010. Growth in corporate profits started cooling off in 2011 and is expected to grow only modestly in 2012. Continued efforts by markets to maintain a low cost structure will also limit the extent of industry revenue growth over the year. Firms have sought to expand product offerings by reaching into new markets. “For example, Dun & Bradstreet has increasingly relied on international growth opportunities, specifically in the Asia-Pacific region,” says Samadi. This focus has relied on expanding its client base in the region and acquiring relevant operators. For instance, in 2011, the company acquired MicroMarketing, which is a marketing provider based in China. Over the five years to 2016, demand for company research services is expected to grow along with a strengthening economy and improved product offerings. From 2012 to 2017, industry revenue is forecast to grow.
The Company Research Services industry includes firms that aggregate data, reports and articles from news publications, financial data, personnel data and other types of company relevant information and offer this collection to clients. The rapid increase in the use of the internet, related technologies and market intelligence in the workplace allowed the industry to grow aggressively during the last decade. Nevertheless, during the five years to 2012, the financial crisis, subsequent recession and lackluster recovery severely diminished growth. Firms have sought to expand product offerings by reaching into new markets. In line with the improved product offerings, as well as a strengthening economy, demand for company research services is expected to grow over the next five years. For more information, visit IBISWorld’s Company Research Services in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry conduct research on the management teams, strategic developments, business locations, and the financial conditions of public and private companies. This industry excludes firms that provide basic company research to complement their equity and investment research products and services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.