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 8-9 workers, and generates about $3 million annually.
- The management consulting services industry consists of about 75,900 firms that employ about 664,000 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
Recent Developments
Dec 5, 2022 - Priorities Shift As Economy Slows
- Analysts at Goldman Sachs expect the US to narrowly avert a recession but predict that the global economy will grow just 1.9% in 2023. Goldman Sachs CEO David M. Solomon said in early December that the financial services firm is seeing clients shift attention away from supply chain resiliency toward keeping headcount down.
- Competition for newly-minted MBA graduates is increasing. MBA recruitment for consulting jobs reached a record high at Kellogg, the number three US business school as ranked by Fortune Magazine, About 40% of this year's graduating class took a job in the field, earning $175,000 median base salaries. Grads also earned median signing bonuses of $30,000 and 99% of Kellogg’s most-recent graduating class landed a job within three months of completing their degrees. Consulting salaries are increasing across the US. The MBB (Big 3) Consulting Firms – McKinsey, BCG & Bain – have announced salary hikes for the coming year. Starting base salaries for new MBA grads at the three firms was $175,000 in 2022. Bain and McKinsey will offer $192,000 base salaries in 2023 and BCG will offer $190,000.
- Demand for consulting services continues increasing. The combined revenue of Bain, Boston Consulting Group (bcg), and McKinsey, the three top firms, roughly doubled to $24 billion between 2015 and 2020, according to Kennedy Research Reports, an industry-watcher. Revenue may have reached $30 billion in 2021 as clients wrestled with supply chain and other issues spawned by the coronavirus pandemic, according to Consultancy.org, which tracks the business. Consultants are offering an ever-wider range of services now, including help with implementing the consultants’ counsel. “Clients now demand more than just advice. They want our help in underwriting outcomes,” says Bob Sternfels, boss of McKinsey. Christoph Schweizer, boss of bcg, agrees: “Over time, our work has shifted from advising to advising and building.”
- A forthcoming proposed rule from the Biden administration would require public companies supplying goods and services to the federal government to disclose greenhouse gas (GHG) emissions and other climate-related risks. The rule follows similar requirements proposed by the Securities and Exchange Commission (SEC) related to the disclosure of climate change risks. Federal contractors are advised by industry experts to devise and execute procedures to document and track GHG emissions information both companywide and those attributable to specific procurement contracts. Managing consulting firms may benefit if firms need compliance assistance if the proposal is enacted.
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