Consulting Industry – Page 4

Consulting Industry Outlook 2018

It’s a good time to be in the consulting world! According to the recently released Consulting Magazine’s 2018 Executive Outlook report, the theme for the consulting industry this year is “Let the Good Times Roll.”

The positive economic momentum + recent corporate tax cuts equal an “upbeat and bullish forecast” for the consulting industry. As result, the industry remains strong and firms are in the “midst of a hiring frenzy” to get the work done. Below is a high-level overview of the results in the report:

97% of leading consulting firms surveyed experienced real revenue growth over the last 12 months.
98% of executives are forecasting growth in 2018, and 94% are saying that growth will exceed 6%.
95% of firm leaders anticipate net profits will improve, and 62% of the firms predict net profits will be up more than 10% in 2018.

The survey was conducted in the latter part of 2017 with more than 130 Managing Directors, Partners and Vice Presidents participating. To read the full 2018 Executive Outlook, click here.

Disruption in the Consulting Industry

A couple of years ago, a team of thought leaders put their minds together to study professional services, especially consulting and law, to understand how these industries are changing and why. Then they spoke extensively with more than 50 leaders of incumbent and emerging firms, their clients, and academics and researchers who study them.

So what did these thought leaders learn from this study and the interviews?

The same forces that disrupted so many businesses, from steel to publishing, are starting to reshape the world of consulting.

Learn more here.

The Freelance Economy in 2017

According to a new study conducted by LinkedIn, freelancers now account for nearly 35% of the USA workforce…and the trend is only gaining traction with more professionals opting out of traditional “full-time” employment.

The Croixstone Consulting team found the following survey findings of particular interest:

40% of LinkedIn’s freelancers (the social networking site’s “ProFinder” members) are based in just four states (California, Florida, New York and Texas).
Marketing, Business Consulting and Design were the top 3 industries for freelance work in 2016.
Younger freelancers identified industry preferences centered on Writing, Photography and Home Improvement.
Older freelancers identified industry preferences focused on Career Coaching, Business Consulting and Real Estate.
33% of all professional freelancers surveyed were male.
The average freelancer is an older male (nearly 50% of LinkedIn’s ProFinder members are older than 50).
The average hourly rate for freelance work averages $50-$150.

Gain more insights into the Freelance Economy here.

Snapshot – U.S. Consulting Industry

So how big is the U.S. consulting industry?

According to data published in June 2016 by Consultancy.uk (an online platform for the advisory and consulting industry), the U.S. consulting industry (the world’s largest and most mature consulting segment), grew strongly last year at a healthy 8% to reach nearly $55 billion.

Given Croixstone Consulting’s home here in Charlotte, the nation’s 2nd largest financial market, it was no surprise to see that, once again, the Financial Services industry remains far and away the U.S. consulting market’s biggest spender. Banks and insurers, among others, spent nearly $14 billion on consultants in 2015, up 9% on last year, although the growth rate was slower than the year previous.

Other industries showed robust growth as well. Retail was the fastest growing sector, expanding 11% to approach $4 billion as retailers bolstered their digital investments in order to tap into the rise of e-commerce and omnichannel demands. Consulting to the public sector remains the poor relation of the industry, according to the researchers, with a 2.6% growth to $6 billion, as public sector investment sunk to the lowest level in over 60 years. The U.S. energy & resources consulting market grew by 5% to $7.3 billion, while pharma grew by a strong 10% to $1.7 billion, despite mounting pressures in the space, including an increasingly intense debate about drug pricing practices.

Learn more here.

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