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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Jan 17, 2025 - Upper-Income Consumer Spending Intent Drops
                              • Spending intent among US high-income consumers dropped in January, according to a recent report by consultancy Bain & Company and market research firm Dynata. The Consumer Health Indexes (CHI) fell 10.8 points in January to 96.5 from 107.3 in December. The CHI reading saw a similar drop in early 2024, and spending intensions never rebounded back to earlier average levels. The average CHI reading in 2024 was seven points below 2023’s average of 113.8. While the Bain/Dynata report notes that one month’s data doesn’t necessarily herald a trend, the January decline in spending intentions by high earners could be an early sign of broader economic weakness. High-income consumers account for about half of US discretionary spending.
                              • US companies should brace for an increase in immigration enforcement as the Trump administration enters the White House, according to Bloomberg Law. Trump campaigned on a stricter immigration stance, which could bring an increase in immigration-related investigations, audits, and worksite enforcement. Some legal experts suggest a key enforcement area is likely to be greater scrutiny of Form I-9. Employers must have employees fill out an I-9 to verify work authorization status and identity. Form I-9 compliance enforcement – in the form of audits – hit an all-time high during Trump’s first term, and Immigration and Customs Enforcement fines for I-9 errors can range from about $280 to nearly $27,900. Since companies may employ workers with varying immigration statuses, some legal experts suggest that firms conduct internal audits to ensure compliance.
                              • 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.
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