Niche scientific and financial consulting services will drive growth
Los Angeles, CA (PRWEB) August 08, 2013
The Scientific and Economic Consulting industry has experienced impressive growth over the past five years, weathering an economy that nearly toppled a number of related industries. “The industry's diverse range of markets with varying degrees of specialization in products and services have allowed it to sustain growth in a period of difficult economic conditions,” says IBISWorld industry analyst Jeremy Edwards. “The industry experienced losses in 2008; however, increasing demand from the federal government and private firms seeking greater assistance provided new opportunities.” Additionally, the industry grew as a result of increased demand from mining and energy firms that required feasibility studies and other advisory services. Outside of declines in 2008, the industry has experienced a rising number of businesses, particularly nonemployers. These firms have taken advantage of low barriers to entry to capture high industry profit margins. Overall, the industry is forecast to grow by an average annual rate of 6.2% over the five years to 2013.
In 2013, the Scientific & Economic Consulting industry is expected to grow due to increasing corporate profit and, consequently, rising investment. “Growth may be slightly mitigated by austerity measures enacted by the federal government,” says Edwards. “Furthermore, budget sequestration (automatic spending cuts caused by large budget deficits) is expected to slow growth.” As a result, industry revenue is expected to grow by 4.2% to $27.4 billion in 2013, lagging slightly behind 2012 growth rates.
Improving economic conditions are expected to provide the industry with stronger growth over the next five years. Improving consumer sentiment and household disposable income is forecast to increase corporate profit margins, creating demand for scientific and economic consultants. Specialized areas of consulting, such as genomics and pharmaceuticals, are also likely to be a source of strong growth for consultants in this industry. In addition, firms are expected to become more profitable over the next five years, attracting numerous new firms to enter the industry.
Over the past five years, the contribution of nonemployer firms to the industry has increased. These firms tend to specialize in providing services to one particular market rather than a diverse portfolio, which further dilutes industry concentration. Larger players, such as Marsh and McLennan Companies, are expected to pursue mergers and acquisitions to increase market share; however, the industry will remain highly fragmented due to an increase in the number of nonemployer firms. For more information, visit IBISWorld’s Scientific & Economic Consulting in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry provide advice and assistance to businesses and other organizations on scientific and technical issues. The industry includes a range of specialist consulting activities, primarily in the areas of economic, energy and mineral, security, and agricultural analysis. This industry excludes establishments that derive their revenue primarily from environmental consulting and remediation, geophysical surveying and mapping, or oil and gas exploration.
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.