Management Consulting Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 90,000 management consulting firms in the US assist businesses and organizations with administrative, strategic, and management-related issues. Major revenue categories include strategic and financial management consulting and implementation services. Firms may also offer operations and supply chain, marketing, and human resources management consulting services. Customers include businesses, institutions, non-profit organizations, and government entities.
Competitive Bidding
Many clients use competitive bidding when soliciting management consulting services and preparing bids is a costly process for consulting firms and requires significant amounts of managerial time and effort.
Dependence On Highly-Skilled Labor
Management consulting firms solve complex business problems and rely on highly-skilled, educated, and experienced industry professionals to provide consulting services.
Industry size & Structure
The average management consulting services provider operates out of a single location, employs fewer than 5 workers, and generates about $3.4 million annually.
- The management consulting services industry consists of about 90,000 firms that employ about 845,000 workers and generate about $307 billion annually.
- The industry is fragmented; the top 50 companies account for 41% of industry revenue.
- Large companies include McKinsey and Company, Booz Allen Hamilton, Boston Consulting Group, Bain, and Accenture. Most large firms offer comprehensive services and operate nationally and internationally.
Industry Forecast
Management Consulting Services Industry Growth
Recent Developments
Dec 18, 2024 - Employers Try to Strike a Balance Between In-Office and WFH
- While most employers are implementing return-to-office requirements, they realize the need to balance in-office work with the value that employees place on working from home, according to a recent survey by advisory firm WTW. About 61% of US companies surveyed said they had implemented a formal policy requiring employees to be in the office for a minimum number of days per week. The most cited reasons for in-office requirements included better engagement within teams (84% of respondents), reinforcing corporate culture (71%), and increasing productivity through better collaboration (64%). However, firms recognize that many workers value remote work. When asked about the leading benefit of remote work, 84% of those surveyed said attracting and retaining talent for roles that would go unfilled without remote work options, 78% said better work-life balance improved engagement, and 76% said remote work improved retention.
- More than three-quarters of CEOs at some of the world’s largest companies are optimistic about the global economy, according to a recent survey by advisory firm Teneo and reporting by The Wall Street Journal. The Teneo survey of CEOs of firms with at least $1 billion in sales showed that 77% expect the global economy to improve in the first half of 2025. CEOs are generally optimistic that a Trump presidency will help reduce corporate taxes and regulations. Over 80% of big company bosses foresee an uptick in M&A activity in 2025. An anticipated easing of access to capital also buoyed the CEO outlook.
- Nearly all (97%) business leaders whose organizations are investing in AI report that their AI initiatives have generated positive return on investment (ROI), according to the most recent AI Pulse Survey by Ernst & Young. Just over a third of business leaders whose firms are already investing in AI said they expect AI investments of $10 million or more in 2025. All major metrics of AI-enabled ROI improvements saw gains since the last AI Pulse Survey six months earlier, including operational efficiencies (84% of respondents, up from 77%), employee productivity (83%, up from 76%), technology updates (82%, up from 74%), cybersecurity (81%, up from 74%), competitive advantages (80%, up from 73%), and product innovation (78%, up from 71%). Despite the ROI gains, senior business leaders are wary of AI’s risks; 61% of leaders whose firms have invested in AI reported growing interest in responsible AI practices, up from 53% six months earlier.
- Despite rapid advancements in technology, 40% of large companies have seen negative productivity growth over the past 10 years, according to a recent report by consulting firm Accenture. However, the report also showed that the top quarter of firms are experiencing productivity gains of about 8% per year by focusing on cost and productivity strategies, including investments in generative AI and other technologies. The study found that the top 25 most productive firms invested twice as much in technology per employee compared to less productive companies and emphasized ongoing skills training. Top-performing firms improved revenues by 1.3% for a 1% increase in productivity investments. The study also found that generative AI has the potential to save 12% of working hours and improve output quality by 8%.
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