New York, NY (PRWEB) February 27, 2014
The Scientific and Economic Consulting industry has experienced impressive growth over the five years to 2014, 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. The industry grew each year over the period, and 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. The industry has also experienced a rising number of businesses, particularly non-employers. These firms have taken advantage of the low barriers to entry to capture high industry profit margins. Overall, industry revenue is forecast to grow strongly at an average annual rate over the five years to 2014.
In 2014, the industry is expected to grow due to increasing corporate profit and, consequently, rising investment. However, according to IBISWorld Industry Analyst Jeremy Edwards, “growth may be slightly mitigated by austerity measures enacted by the federal government in 2013.” Government consumption and investment contracted in 2013, which is expected hurt business investment in 2014. Revenue is projected to grow in 2014.
The Scientific and Economic Consulting industry is highly fragmented due to the wide range of industry activities offered and low barriers to entry. Improving economic conditions are expected to provide the industry with stronger growth over the next five years. Rising consumer sentiment and household disposable income are 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,” says Edwards. In addition, firms are expected to become more profitable over the next five years, attracting numerous new firms to enter the industry. Larger players are expected to pursue mergers and acquisitions to increase their market share; however, the industry will remain highly fragmented due to an increase in the number of nonemployer firms. As a result, the industry is projected to grow significantly at an annualized rate over the five years through 2019.
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IBISWorld industry Report Key Topics
Companies in the Scientific and Economic Consulting 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.