Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
WWW.IBISWORLD.COM
Management Consulting
in the US
May 2016
Gavan Blau
17 International Trade
Industry Definition
18 Business Locations
33 Industry Assistance
Main Activities
Similar Industries
20 Competitive Landscape
34 Key Statistics
Additional Resources
34 Industry Data
34 Annual Change
34 Key Ratios
4 Industry at a Glance
22 Basis of Competition
5 Industry Performance
23 Barriers to Entry
Executive Summary
24 Industry Globalization
Current Performance
25 Major Companies
Industry Outlook
25 Accenture PLC
30 Operating Conditions
30 Capital Intensity
15 Demand Determinants
15 Major Markets
31 Revenue Volatility
WWW.IBISWORLD.COM
Main Activities
Similar Industries
WWW.IBISWORLD.COM
Additional Resources
IBISWorld
WWW.IBISWORLD.COM
Industry at a Glance
Management Consulting in 2016
Key Statistics
Snapshot
Revenue
Profit
Wages
Businesses
$252.8bn 5.6%
4.1%
$24.8bn $99.9bn 739,530
Corporate profit
Accenture PLC
2.9%
% change
Deloitte Touche
Tohmatsu
2.1%
McKinsey &
Company
1.2%
15
30
10
20
10
% change
Market Share
0
-5
0
-10
-10
-15
Year 08
10
12
Revenue
14
16
18
20
-20
Year
22
09
11
13
15
17
19
21
Employment
SOURCE: WWW.IBISWORLD.COM
p. 25
7.5%
4.2%
IT strategy
Financial advisory
Corporate profit
8.1%
Number of businesses
38.5%
Aggregate private
investment
Corporate strategy
Government consumption
and investment
9.4%
13.0%
Organizational design
p. 5
19.3%
Industry Structure
Mature
Medium
Low
Industry Assistance
None
Concentration Level
Low
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 34
Regulation Level
Technology Change
Barriers to Entry
Industry Globalization
Competition Level
SOURCE:
WWW.IBISWORLD.COM
SOURCE:
WWW.IBISWORLD.COM
Light
Low
Low
Medium
High
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Industry Performance
Digital
Corporate profit
Corporate profit measures profit earned
across the entire economy and not just
the Management Consulting industry. A
rise in corporate profit generally
increases the number of businesses that
are able to afford consulting services.
Therefore, an increase in corporate profit
precipitates an increase in industry
revenue. Corporate profit is expected to
increase in 2016.
Number of businesses
General growth in the number of
businesses directly affects aggregate
demand for management consulting. An
increase in the number of US businesses
WWW.IBISWORLD.COM
Industry Performance
Corporate profit
30
20
10
% change
% change
0
-10
-20
Year
-1
-2
09
11
13
15
17
19
21
-3
Year
08
10
12
14
16
18
20
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Current
Performance
Business conditions
support demand
Industry revenue
12
% change
9
6
3
0
-3
-6
Year 08
10
12
14
16
18
20
22
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Addressing
investment and
equity gaps
Industry
consolidation
Larger
industry players
have continued to acquire
smaller firms with interests
in high-growth services
entrants. Over the five years to 2016, the
number of industry enterprises is
expected to grow at an average annual
rate of 3.6% to 739,530. Similarly, rising
industry demand is forecast to help
industry employment expand 6.1% to 1.7
million individuals.
WWW.IBISWORLD.COM
Industry Performance
Industry
Outlook
Business conditions
remain healthy
The
industrys performance
is forecast to be
underpinned by steady
business conditions
evaluate company operations and provide
guidance regarding the least profitable
segments of operations and how reinvention
of brands and redevelopment of systems
may boost earnings. Management
consultants may also recommend that
certain segments are shut down so that
companies can focus on core competencies.
Strong growth across these areas is also
expected to attract greater investment from
major professional service providers, such
as major accounting firms. Companies like
Deloitte, Pricewaterhouse Coopers and
BearingPoint (formerly KPMG) are all
expected to increase investment in
consulting services due to rising profitability
and synergy with existing products, such as
audit and taxation services. Major
accounting firms already hold vast
quantities of data on business operations
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Industry Performance
Business conditions
remain healthy
continued
Digital strategy
demand
WWW.IBISWORLD.COM
Industry Performance
Life Cycle Stage
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
15
10
Quantity Growth
Management Consulting
Accounting Services
0
Engineering Services
Tax Preparation Services
Computer Stores
Decline
-5
Shrinking economic
importance
-5
10
15
20
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Industry Performance
industry
is M
ature
WWW.IBISWORLD.COM
Supply Chain
Utilities in the US
Utilities companies use this industry for organizational, budgeting, and human resources
consulting.
31-33
Manufacturing in the US
Manufacturing companies require a wide range strategic and organizational planning services
that this industry offers.
52
62
92
44312
45321
53112
Corporate strategy
Corporate strategy services contribute
an estimated 38.5% to management
consulting revenue. This service area
includes strategic advice in the areas of
general growth strategy, leadership
development, performance
improvement, mergers and acquisitions,
and corporate portfolio design. In the
area of leadership development,
consultants view employee engagement
as a potential source of competitive
advantage. As online learning
methodologies have reduced the cost of
providing employee training, this service
area has experienced growth. Over the
past five years, this segment has grown
as a proportion of revenue as companies
hire consultants to develop new ideas
and business plans.
WWW.IBISWORLD.COM
7.5%
Financial advisory
4.2%
IT strategy
8.1%
38.5%
Corporate strategy
9.4%
13.0%
Organizational design
Total $252.8bn
19.3%
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Demand
Determinants
Major Markets
WWW.IBISWORLD.COM
Major Markets
continued
7.8%
8.0%
23.8%
8.4%
9.8%
16.6%
11.0%
Manufacturing companies
Total $252.8bn
14.6%
Government organizations
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Major Markets
continued
International Trade
WWW.IBISWORLD.COM
West
New
England
AK
0.1
Great
Lakes
WA
ND
MT
1.3
Rocky
Mountains
ID
OR
0.6
West NV
0.7
2.0
SD
0.0
WY
0.1
MN
0.1
0.1
Plains
CO
0.6
1.5
0.5
3.0
KY
12.7
OK
0.4
AZ
NM
1.4
0.2
Southwest
TX
6.9
HI
0.1
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.1
2.6
0.2
4.7
4.9
0.2
NC
1.5
SC
Southeast
MS
AL
0.5
0.5
GA
5.0
0.1
LA
0.4
FL
4.9
Revenue (%)
0.2
2.7
0.2
0.1
TN
AR
WV VA
5.1
1.4
CA
West
OH
0.5
MO
KS
2.0
1.1
8.4
4.6
IN
IL
0.2
UT
PA
3.2
0.3
0.1
1 2
3
NY
8.4
5 4
MI
0.9
IA
NE
0.0
WI
ME
MidAtlantic
9 DC
2.2
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
20
20
Population
Southwest
Southeast
Plains
New England
Rocky Mountains
Revenue
Mid-Atlantic
West
Southwest
Southeast
Plains
Rocky Mountains
Revenue
New England
0
Mid-Atlantic
0
Great Lakes
10
West
10
Great Lakes
30
Business Locations
Establishments
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
20
Competitive Landscape
in
this industry is L ow
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
Profit
Cost structures within the Management
Consulting industry vary based on a
variety of firm-specific factors, including
business size and markets served.
Industry profit margins, defined as
earnings before interest and tax, are
anticipated to account for 9.8% of
WWW.IBISWORLD.COM
21
Competitive Landscape
Industry Costs
(2016)
12.1
9.8
100
n Profit
n Wages
n Purchases
n Depreciation
n Marketing
n Rent & Utilities
n Other
80
Percentage of revenue
Cost Structure
Benchmarks
continued
39.5
43.2
60
40
1.4
20
18.5
14.9
4.3
21.8
1.6
0.7
3.2
1.7
26.6
0
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
22
Competitive Landscape
Cost Structure
Benchmarks
continued
Purchases
Purchases are expected to account for
18.5% of industry revenue in 2016.
Businesses typically require the
procurement of software, office related
products. Reimbursing agents for
expenses, such as travel are included in
the purchases segment. Sub-contracting
of professional services can be a
significant item in this category.
Rent and utilities
Rent and utilities combined are expected
to account for 3.2% of industry revenue
in 2016. Firms in the industry often
consider their offices and buildings a
representation of their brand and invest
in modern, attractive properties.
Although a large share of consulting work
is done offsite, at a clients place of
business, facilities for consultants are
necessary for day-to-day work, client
meetings and training sessions.
Meanwhile, utility costs represent
Basis of Competition
Level & Trend
ompetition
C
in
this industry is
Highand the trend
is I ncreasing
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23
Competitive Landscape
Basis of Competition
continued
Barriers to Entry
Level & Trend
arriers to Entry
B
High
Low
Mature
Low
Low
Light
None
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
24
Competitive Landscape
Barriers to Entry
continued
Industry
Globalization
in
this industry is
Mediumand the
trend is I ncreasing
WWW.IBISWORLD.COM
Major Companies
Accenture PLC | Deloitte Touche Tohmatsu
McKinsey & Company | Other Companies
Major players
(Market share)
93.8%
Other
Player Performance
Accenture PLC
Market share: 2.9%
SOURCE: WWW.IBISWORLD.COM
(% change)
Net Income
($ million)
(% change)
2010-11
5,223.4
N/C
710.6
N/C
2011-12
5,602.3
7.3
778.6
9.6
2012-13
5,999.4
7.1
911.4
17.1
2013-14
6,295.2
4.9
902.5
-1.0
2014-15
6,967.7
10.7
995.5
10.3
2015-16**
7,225.7
3.7
1,040.8
4.6
Year*
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Major Companies
Player Performance
continued
Player Performance
Deloitte Touche
Tohmatsu
Market share: 2.1%
(% change)
2011-12
4,083.0
N/C
993.3
N/C
2012-13
4,473.2
9.6
1,141.9
15.0
2013-14
4,930.0
10.2
1,202.5
5.3
2014-15
5,391.2
9.4
1,315.0
9.4
2015-16**
5,703.3
5.8
1,422.0
8.1
2016-17**
6,005.2
5.3
1,487.3
4.6
Year*
Operating Income
($ million)
(% change)
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
McKinsey &
Company
Market share: 1.2%
Financial performance
IBISWorld expects Deloittes US
industry-relevant consulting revenue to
grow to $6.0 billion in fiscal 2016-17,
representing annualized growth of 8.0%
over five years. The company generated
$35.2 billion in total revenue for fiscal
2014-15, which represented an increase
of 2.9% over the previous year. However,
the companys US and consulting-specific
revenue both grew at a relatively faster
rate than the companys overall revenue,
growing from 43.2% to 44.2% over the
same period, a trend expected to
continue. Deloitte is continuing to focus
on providing more advisory and
consulting services to clients as these
operations tend to be highly profitable
when compared with other taxation and
accounting services.
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Financial performance
Although the firms financial records are
not publicly available, IBISWorld
expects McKinseys US consulting
Revenue
($ million)
(% change)
Employees
(People)
(% change)
2011
2,450.0
N/C
5,950
N/C
2012
2,625.0
7.1
6,090
2.4
2013
2,730.0
4.0
6,170
1.3
2014
2,800.0
2.6
6,225
0.9
2015
2,905.0
3.8
6,300
1.2
2016
2,975.0
2.4
6,350
0.8
*Estimates
SOURCE: IBISWORLD
Other Companies
PricewaterhouseCoopers LLP
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Major Companies
Other Companies
continued
WWW.IBISWORLD.COM
Operating Conditions
of capital
intensity is L ow
Capital intensity
Economy
Professional,
Scientific and
Technical Services
Management
Consulting
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Capital Intensive
Labor Intensive
Management
Consulting
Accounting Services
Engineering Services
Traditional Service Economy
Tax Preparation Services
Computer
Stores
Wholesale and Retail. Reliant
Office Supply Stores
on labor rather than capital to
sell goods. Functions cannot
be outsourced therefore firms
must use new technology
or improve staff training to
increase revenue growth.
Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity
continued
of
Technology
Change is L ow
Revenue Volatility
Level
The level
of
Volatility is M
edium
WWW.IBISWORLD.COM
Operating Conditions
Volatility vs Growth
1000
Revenue Volatility
continued
Hazardous
Rollercoaster
100
10
Management Consulting
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
Regulation is
Lightand the
trend is S
teady
WWW.IBISWORLD.COM
Operating Conditions
Industry Assistance
Level & Trend
he level of
T
Industry Assistance
is N
oneand the
trend is S
teady
WWW.IBISWORLD.COM
34
Key Statistics
Industry Data
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Revenue
($m)
158,841.5
169,619.5
161,592.7
178,776.5
192,718.2
207,584.6
214,586.6
224,965.5
246,218.7
252,843.5
263,703.8
275,622.5
285,927.2
295,949.0
308,948.3
3/36
49/1556
Annual Change
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Revenue
(%)
6.8
-4.7
10.6
7.8
7.7
3.4
4.8
9.4
2.7
4.3
4.5
3.7
3.5
4.4
11/36
339/1556
Key Ratios
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
IVA/Revenue
(%)
61.69
49.77
50.42
49.00
49.46
50.77
49.90
49.74
49.81
50.07
50.25
50.42
50.62
50.86
51.09
6/36
117/1556
Industry
Value Added
($m)
97,981.9
84,420.8
81,472.5
87,594.4
95,316.7
105,394.7
107,079.8
111,903.6
122,646.4
126,610.2
132,500.6
138,979.1
144,741.3
150,512.4
157,827.5
3/36
21/1556
Establishments
612,229
594,680
612,576
614,933
625,083
647,342
654,342
697,167
743,085
749,326
771,506
797,967
813,825
830,094
854,708
1/36
9/1556
Enterprises Employment
605,508
1,355,045
589,891
1,220,467
607,312
1,213,072
609,592
1,235,944
618,826
1,278,421
641,014
1,384,928
646,547
1,451,190
688,835
1,594,068
733,737
1,699,058
739,530
1,716,755
760,931
1,789,543
786,755
1,865,932
802,062
1,910,673
817,796
1,958,113
841,760
2,026,727
1/36
2/36
9/1556
20/1556
Exports
---------------N/A
N/A
Imports
---------------N/A
N/A
Wages
($m)
83,462.9
69,237.2
66,805.1
69,743.2
74,030.3
83,332.0
83,875.6
88,176.2
96,677.5
99,942.5
104,687.5
109,908.9
114,584.2
119,298.3
125,242.4
2/36
14/1556
Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Industry
Value Added
(%)
-13.8
-3.5
7.5
8.8
10.6
1.6
4.5
9.6
3.2
4.7
4.9
4.1
4.0
4.9
8/36
268/1556
Establishments
(%)
-2.9
3.0
0.4
1.7
3.6
1.1
6.5
6.6
0.8
3.0
3.4
2.0
2.0
3.0
13/36
404/1556
Enterprises Employment
(%)
(%)
-2.6
-9.9
3.0
-0.6
0.4
1.9
1.5
3.4
3.6
8.3
0.9
4.8
6.5
9.8
6.5
6.6
0.8
1.0
2.9
4.2
3.4
4.3
1.9
2.4
2.0
2.5
2.9
3.5
15/36
4/36
417/1556
173/1556
Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages
(%)
-17.0
-3.5
4.4
6.1
12.6
0.7
5.1
9.6
3.4
4.7
5.0
4.3
4.1
5.0
4/36
207/1556
Domestic
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Exports/
Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Revenue per
Employee
($000)
117.22
138.98
133.21
144.65
150.75
149.89
147.87
141.13
144.91
147.28
147.36
147.71
149.65
151.14
152.44
23/36
1241/1556
Wages/Revenue
(%)
52.54
40.82
41.34
39.01
38.41
40.14
39.09
39.20
39.26
39.53
39.70
39.88
40.07
40.31
40.54
5/36
65/1556
Employees
per Est.
2.21
2.05
1.98
2.01
2.05
2.14
2.22
2.29
2.29
2.29
2.32
2.34
2.35
2.36
2.37
25/36
1377/1556
Average Wage
($)
61,594.19
56,730.09
55,071.01
56,429.09
57,907.61
60,170.64
57,797.81
55,315.21
56,900.65
58,215.94
58,499.57
58,902.95
59,970.60
60,925.14
61,795.40
16/36
550/1556
Corporate
profit
($b)
1,529.0
1,285.1
1,397.0
1,746.4
1,816.6
1,998.2
2,037.4
2,072.9
2,045.1
2,018.0
2,087.0
2,109.8
2,130.0
2,161.8
2,213.8
N/A
N/A
Corporate
profit
(%)
-16.0
8.7
25.0
4.0
10.0
2.0
1.7
-1.3
-1.3
3.4
1.1
1.0
1.5
2.4
N/A
N/A
Share of the
Economy
(%)
0.66
0.57
0.57
0.59
0.63
0.69
0.69
0.70
0.75
0.76
0.77
0.79
0.81
0.83
0.85
3/36
21/1556
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Jargon
IBISWorld Glossary
WWW.IBISWORLD.COM
IBISWorld Glossary
continued
Who is IBISWorld?
We are strategists, analysts, researchers, and marketers. We provide
answers to information-hungry, time-poor businesses. Our goal is to
provide real world answers that matter to your business in our 700 US
industry reports. When tough strategic, budget, sales and marketing
decisions need to be made, our suite of Industry and Risk intelligence
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