The industry's countercyclical services have created growth opportunities.
New York, NY (PRWEB) November 01, 2014
The Management Consulting industry comprises firms that provide advisory services to private businesses and the public sector. Advisory services are tailored to provide strategic, financial, marketing, operational and supply chain management consulting services. “Over the past five years, the Management Consulting industry has recovered from the onset of the recession, which disrupted business activity and caused corporate profit margins to plummet,” according to IBISWorld Industry Analyst Jeremy Edwards. Consequently, businesses tightened their budgets and reeled spending in on discretionary purchases such as management consulting services. However, industry revenue only fell 5.2% in 2010 before quickly recovering as consultants benefited from countercyclical demand for services regarding restructuring and cost cutting. Consultants assisted struggling businesses with organizational design and strategic planning while demand from the United States and other major trading partners remained weak.
However, more recently, the industry has grown due to stronger corporate profit, a growing number of Canadian businesses and sustained need for expert advice regarding strategic and financial management services. “Improving demand from the financial sector, which represents the industry's single largest market, has also boosted revenue as private firms use consultants prior to mergers and acquisitions, joint ventures, divestitures and initial public offerings,” says Edwards. Consequently, industry revenue is projected to grow at an average annual rate of 0.9% to $8.5 billion over the five years to 2014. Revenue is forecast to accelerate 2.4% in 2014 as businesses expand operations and require organizational assistance.
Over the next five years, industry revenue is expected to accelerate as a result of rising corporate profit, an increasing number of businesses and growing demand from financial, energy and mining and public sectors. Management consultants are also expected to experience an increase in competition. For example, other industries such as those focusing on IT consulting and HR consulting are expected to increasingly compete for clients to assist operational efficiency. Additionally, the largest companies in the industry are forecast to proceed with aggressively acquiring businesses to increase their breadth of services and market share.
For more information, visit IBISWorld’s Management Consulting in Canada industry report page.
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IBISWorld industry Report Key Topics
Industry operators advise businesses, nonprofit organizations and public sector agencies in a number of areas: organizational design, corporate strategy, marketing and sales, financial advisory and logistics. This industry excludes establishments that provide day-to-day administrative services, and companies that concentrate on recruitment, training, public relations, market research, engineering design, computer systems design, or investment advice.
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