Demand will rise as corporate profit continues to strengthen after its recessionary lows
Los Angeles, CA (PRWEB) April 04, 2013
In the five years to 2013, IBISWorld estimates that the Expert Witness Consulting Services industry's revenue has grown steadily, with an average annual growth of 2.6% to $136.6 million. Despite strong growth prior to the recession from robust corporate activity and strong demand from law firms and other markets, industry demand and revenue fell during the recession. “A decline in per capita disposable income and corporate profit caused businesses and customers to have fewer funds available for expert witness consulting services,” IBISWorld industry analyst Lauren Setar says. Consequently, the industry's growth slowed during the past five years. Since 2010, industry demand and revenue have increased as corporate profit and per capita disposable income strengthened as well. IBISWorld expects industry revenue to increase 3.2% in 2013 because of greater demand from law firms as well as government consumption and investment.
The Expert Witness Consulting Services industry is highly fragmented and thus exhibits a low level of market share concentration. “The low concentration in the industry is due to the abundance of independent contractors and small, specialized firms in the industry,” Setar says. The largest firms in this industry are typically general consulting firms, which provide expert witness services as only a part of their overall offerings. There are currently no major players in this industry; however, some of the smaller influential companies are The TASA Group, ForensisGroup Inc. and FTI Consulting, Inc. The revenue that these firms bring in for expert witness services only represents a small fraction of total industry revenue.
The industry has faced mounting competition throughout the past five years, which has pressured revenue growth and industry profit. Although firms in the industry compete against one another on the basis of price, quality of service, expertise, communication skills and reputation, the industry as a whole faces significant external competition as well. Other industries or businesses with equally capable employees can pose as competition to expert witness consulting services. This is mainly because the industry serves such a wide variety of markets. The majority of external competition comes from firms that have a general counsel or in-house legal team with expert witnesses.
During the five years to 2018, IBISWorld estimates that industry revenue will increase. Expert witness consultants will benefit largely from strengthened demand from law firms, higher corporate profit, a larger number of civil cases and greater per capita disposable income. For instance, corporate profit is expected to grow. With this, potential customers will have more money available for the industry's high cost services. In the next five years, companies are expected to provide more value-added services and employ workers with specialized backgrounds, and as a result, firms will be able to offer more services to clients and compete more effectively in the industry. For more information, visit IBISWorld’s Expert Witness Consulting Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides witnesses to offer expertise and specialized knowledge within particular subject areas in court cases. This does not include in-house expert witnesses from firms that have a general counsel or legal team.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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