INDUSTRY INSIGHTS

Management consultants

provide advice, guidance, and operational assistance to businesses and other organisations on management issues such as corporate strategy development, business process management, and digital strategy consulting.

(Ibis World, 2022)

The industry is growing

with revenue expected to reach £70.2 billion over the five years through 2022-23 (Ibis World, 2022). In fact, the fastest increase was experienced in clients from Infrastructure (up 34%), Manufacturing (29%) and Energy Sectors (21%) as businesses kick-started new projects and firms focused on digital transformation and achieving sustainability goals. Given the step change in demand, firms have rapidly increased the number of staff they employ, up 14%, with 88,000 management consultants now employed across the sector.

(Management Consultancies Association, 2022; Business Chief, 2022)

INDUSTRY INSIGHTS

Management consultants

provide advice, guidance, and operational assistance to businesses and other organisations on management issues such as corporate strategy development, business process management, and digital strategy consulting

(Ibis World, 2022).

The industry is growing

with revenue expected to reach £70.2 billion over the five years through 2022-23 (Ibis World, 2022). In fact, the fastest increase was experienced in clients from Infrastructure (up 34%), Manufacturing (29%) and Energy Sectors (21%) as businesses kick-started new projects and firms focused on digital transformation and achieving sustainability goals. Given the step change in demand, firms have rapidly increased the number of staff they employ, up 14%, with 88,000 management consultants now employed across the sector

(Management Consultancies Association, 2022; Business Chief, 2022).

Nevertheless, the challenges

are far from absent since the forces driving sector changes are numerous and vary. The consulting marketplace is evolving quickly from one that relied primarily on interpersonal contact to develop new business to a wide-open online playing field. That is where the game is played, and buyers select the winners. Moreover, the need for new skills, technologies and techniques in the current highly competitive context has made firms feel unrelenting pressure to keep up with the constant structural shifts. Seeking to adapt to the new post-pandemic business dynamics, an increasing number of companies will likely attempt to increase their productivity and boost business output by implementing greater investment in new facilities and operating capacity. This investment will increase demand for key industry segments, making the match between the right people and the right skill sets necessary

(Ibis World,2022; Hinge,2021).

Nevertheless, the challenges

are far from absent since the forces driving sector changes are numerous and vary. The consulting marketplace is evolving quickly from one that relied primarily on interpersonal contact to develop new business to a wide-open online playing field. That is where the game is played, and buyers select the winners. Moreover, the need for new skills, technologies and techniques in the current highly competitive context has made firms feel unrelenting pressure to keep up with the constant structural shifts. Seeking to adapt to the new post-pandemic business dynamics, an increasing number of companies will likely attempt to increase their productivity and boost business output by implementing greater investment in new facilities and operating capacity. This investment will increase demand for key industry segments, making the match between the right people and the right skill sets necessary.

(Ibis World, 2022; Hinge, 2021)

STATISTICS

The market size, measured by revenue, of the UK Management Consultants industry is £69.6bn in 2022(Ibis World, 2022)

    • £69.6bn in 2022100%

    47% of management consulting firms globally are worried about the changing ways buyers go about buying services(Hinge, 2021)

      • 47% in 202147%

      Training and professional development increased across the industry by 25%(Management Consultancies Association, 2022)

        • By 25% in 202225%

        In 2021 there was a 51% increase in employing graduates 5% rise in the number of apprentices hired, primarily among larger firms(Management Consultancies Association, 2022)

          • 51% increase in 202251%

          INDUSTRY CHALLANGES

          • Increased competition
          • Unpredictability in the Marketplace
          • Changes in how buyers purchase services
          • The need for new skills
          (Hinge, 2021)

          INVESTMENT OPPORTUNITIES

          • Increased demand from rapidly growing sectors
          • Digital transformation and sustainability consulting
          • Workforce training and development
          • Diversity & Inclusion in the workplace
          (Management Consultancies Association, 2022; Ibis World, 2022; Consultancy.co.uk, 2022)