Management Consulting Services NAICS 541611

Apr 29, 2025 - Annual Industry Revenue Climbs

• Revenue for management, scientific and technical consulting services rose 7% over the previous year to $424.7 billion, according to the Bureau of Labor Statistics, amidst growing demand for AI and related data technology services. Companies are seeking out expensive consulting help to expand the use of what are fast becoming standard tools such as clould computing, cybersecurity, and AI-based data analytics and automation. Less demands by the US government on private corporations to combat climate change has many firms taking sustainability initiatives into their own hands and increasing demand for management consultants to offer more services in the areas of climate strategy, supply chain transformation, and navigating the ever changing world of regulatory compliance throughout the world. Consulting firms are also expanding into managed IT services as a means to achieve lines of stable, recurring revenue.
• Companies are cutting their middle management ranks to streamline operations and save money, according to a recent survey on employee and employer power dynamics by Korn Ferry. About half of the 15,000 professionals surveyed report middle management cuts in their organization. But removing that layer can make rank-and-file employees feel directionless and forces senior leadership into a more operational role than a strategic one. Accordingly, about 72% of US senior management told Korn Ferry they are, “stretched beyond their capabilities.” The survey also found that employees are not fans of return-to-office mandates, with 64% of professional workers saying they prefer a hybrid model instead. Pay is always a source of tension between employees and management, and while 66% of those surveyed were satisfied with their compensation, 72% feel that cost of living increases in the larger economy will cut into their earnings.

• Recruiters and HR professionals are overwhelmed with job applications as layoffs in the tech sector and the Trump administration firing huge swaths of government professionals is leading to a “white-collar recession,” according to recruitment site Appcast. With so many white-collar professionals out of work, recruiters are increasingly turning to AI to help them sort through the massive amounts of incoming resumes. According to HireVue, so far in 2025 about 72% of HR professionals use AI weekly, compared to 54% in 2024. Also contributing to the flood of applications is the wider acceptance of remote work, which no longer restricts job applicants by geography, and workers being less picky about the jobs they do take for fear of a possible recession. While corporations use AI more, job seekers are wary of it, with about 67% saying they didn’t trust it to make hiring decisions, per a recent survey from ServiceNow.
• Both employment and average wages for nonsupervisory employees in the management consulting industry increased about 3% overall in 2024, according to the US Bureau of Labor Statistics. The growth came despite a challenging environment in the industry as demand waned during and after the pandemic, causing hiring freezes and layoffs. Overall compensation looks bigger on paper largely due to companies adding benefits (bonuses, profit-sharing, paid-leave) rather than increasing wages. Starting management consultant salaries, however, have remained stagnant across all company sizes for the past two years per a study from career coaching firm Management Consulted. This was true among not only the big four - Deloitte, PwC, EY, and KPMG - but among the coveted MBB crowd (McKinsey, Boston Consulting, Bain), who have historically paid the most. Compensation is expected to remain flat in 2025 as the industry continues to cut costs through an increased use of generative AI and remote work.