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 75,900 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 million annually.

    • The management consulting services industry consists of about 85,100 firms that employ about 801,300 workers and generate about $232 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

                              Mar 15, 2024 - Management Consulting Prices, Wages Rise
                              • Moderate year-over-year wage growth in the management consulting industry in the fourth quarter was slightly below the industry’s Q4 pricing growth, according to the Bureau of Labor Statistics (BLS). The industry’s ability to adjust pricing to keep pace with wage growth can reduce pressure on margins. In the fourth quarter, employment in the management consulting industry was up moderately compared to year-earlier levels, according to the BLS.
                              • A recent spate of white-collar layoffs at firms including Alphabet’s Google, Duolingo, and UPS may signal that generative artificial intelligence (AI) could shake up the white-collar workforce, according to The Wall Street Journal. Since May 2023, firms have cited AI as the reason for about 4,600 layoffs, especially in media and technology, according to outplacement firm Challenger, Gray & Christmas. Some firms are laying off workers after AI implementations, and other layoffs stem from the need to free up budgets for AI investments. Some industry observers suggest that AI could result in flatter corporate hierarchies as the technology takes on more mid-level management tasks. In a recent survey by Oliver Wyman, more than half of managers said their jobs could probably be automated using generative AI.
                              • Global mergers and acquisitions (M&A) activity fell 15% in 2023 to $3.2 trillion, marking the lowest level of M&A in 10 years, according to a recent report by Bain & Company. High interest rates, regulatory hurdles, macroeconomic uncertainty, and weak corporate valuations hindered deal activity. However, the lack of M&A in 2023 could lead to more deals in 2024 as firms seek liquidity or revamp their portfolios. The tech sector was most affected by the weak environment for M&A in 2023 as deal values fell 45%, although valuations in tech are expected to improve in 2024. Other industries that are expected to see more robust M&A in the coming year include healthcare and life sciences, energy and natural resources, and aerospace and defense.
                              • In early 2024, global business leaders are more optimistic about their organization’s future than they were 12 months ago, according to a recent survey by consultancy Capgemini. About 56% of business leaders surveyed said they were confident their firms would continue to grow despite mounting macroeconomic challenges, up from 42% a year earlier. Many business leaders are leaning into artificial intelligence (AI) to drive innovation and boost revenue; 88% of respondents plan to increase investments in digital tools and technology, particularly AI. Cybersecurity is also a chief concern among business leaders; 61% of those surveyed ranked cybersecurity threats as the top risk to growth, up significantly from 39% in 2023.
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