Management Consulting in The US Industry Report

Management Consulting in the USMay 2016 1
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Help wanted: Improved economic conditions

will boost consulting demand
IBISWorld Industry Report 54161
Management Consulting
in the US
May 2016
Gavan Blau
2 About this Industry
17 International Trade
32 Regulation & Policy
Industry Definition
18 Business Locations
33 Industry Assistance
Main Activities
Similar Industries
20 Competitive Landscape
34 Key Statistics
Additional Resources
20 Market Share Concentration
34 Industry Data
20 Key Success Factors
34 Annual Change
20 Cost Structure Benchmarks
34 Key Ratios
4 Industry at a Glance
22 Basis of Competition
5 Industry Performance
23 Barriers to Entry
Executive Summary
24 Industry Globalization
Key External Drivers
Current Performance
25 Major Companies
Industry Outlook
25 Accenture PLC
11 Industry Life Cycle
35 Jargon & Glossary
26 Deloitte Touche Tohmatsu

27 McKinsey & Company
13 Products & Markets

13 Supply Chains
30 Operating Conditions
13 Products & Services
30 Capital Intensity
15 Demand Determinants
31 Technology & Systems
15 Major Markets
31 Revenue Volatility
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About this Industry

Industry Definition
Management consultants advise

businesses, nonprofits and public-sector
agencies in the following areas:
organizational design, human resources,
corporate strategy, information
technology strategy, marketing and
sales, finances and logistics. This
Main Activities
The primary activities of this industry are
industry excludes establishments

providing day-to-day administrative
services and establishments that are
concentrated in recruitment, training,
public relations, market research,
engineering design, computer systems
design and investment advice.
Actuarial, employee benefits and compensation consulting services

Administrative and general management consulting services
Marketing consulting services
Process and logistics consulting services
The major products and services in this industry are

Corporate strategy
Financial advisory
Human resources advisory
IT strategy
Marketing and sales
Organizational design
Process and operations management
Similar Industries
54121c Accounting Services in the US

Accounting firms provide financial and associated management services.
54121d Tax Preparation Services in the US
Tax preparation firms provide financial and associated management services.
54133 Engineering Services in the US
Consulting engineers help oversee the planning and designing of construction and industrial operations.
54151 IT Consulting in the US
IT consultants help plan and design computer systems. This industry is being increasingly linked with
management consulting.
54182 Public Relations Firms in the US
Public relations firms are brought in to ensure that a clients image and perception among customers and
competitors is positive.
54191 Market Research in the US
Market research is conducted when firms wish to know more about the market in which they operate.
61143 Business Coaching in the US
This is an education-based industry adjunct to management consulting, whereby employees develop skills
necessary for effective and efficient implementation.
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About this Industry
Additional Resources
For additional information on this industry

www.consultingmag.com
Consulting Magazine
www.imcusa.org
Institute of Management Consultants USA
www.consultant-news.com
Top-Consultants Consultant-News
IBISWorld
writes over 700 US

industry reports, which are updated
up to four times a year. To see all
reports, go towww.ibisworld.com
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Management Consulting in the US May 2016
Industry at a Glance
Management Consulting in 2016
Key Statistics
Snapshot
Revenue
Annual Growth 11-16
Annual Growth 16-21
Profit
Wages
Businesses
$252.8bn 5.6%
4.1%
$24.8bn $99.9bn 739,530
Corporate profit
Revenue vs. employment growth
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
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p. 25
Products and services segmentation (2016)
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%
Process and operations

management
13.0%
p. 5
19.3%
Marketing and sales
Industry Structure
Life Cycle Stage

Revenue Volatility
Capital Intensity
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:
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SOURCE:
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Light
Low
Low
Medium
High
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Industry Performance
Executive Summary | Key External Drivers | Current Performance

Industry Outlook | Life Cycle Stage
Executive
Summary
Management consultants provide

advisory services to businesses,
nonprofits and public sector agencies to
assist in organizational design,
corporate strategy, information
technology strategy, marketing and sales
and logistics. Over the past five years,
the Management Consulting industry
has been successful as stronger
corporate profitability and increasing
business expenditure resulted in higher
demand for advisory services. The
Digital
technology has provided new

opportunities for operators to assist businesses
industry is estimated to grow at an
average annual rate of 5.6% to $252.8
billion over the five years to 2016. This
includes growth of 2.7% in 2016 alone,
limited by a slight fall in corporate profit.
Sources for demand have been varied in
recent years. Businesses hired consultants
to help identify new investment
opportunities and shield them from future
risk through new organizational structure.
Additionally, the ongoing transition
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.
General growth in the number of
businesses directly affects aggregate
demand for management consulting. An
increase in the number of US businesses
toward digital technology has provided

new opportunities for operators to assist
businesses in the digital landscape.
Demand was also strong from financial
institutions and professional firms, such
as private equity and asset management
businesses, as they called on consultants
to provide advice on globalizing business
operations and investing in new
businesses overseas. Profit has varied over
the period, falling slightly overall to 9.8%.
Over the next five years, the industry is
expected to grow with the general US
economy. Information technology will
continue to be a key growth area for
firms, while other sectors, such as
healthcare, also provide new business
opportunities. Consolidation from the
largest industry players is forecast to
continue; however, the overall industry
structure will continue to be dominated
by small, nonemployer operators. These
businesses focus on servicing local or
niche markets and, therefore, control
exceptionally small proportions of total
industry revenue. Overall, industry
revenue is forecast to increase an
annualized 4.1% to $308.9 billion in the
five years to 2021.
expands the potential pool of clientele for

management consultants and increases
demand for industry services like
administrative, organizational and
strategy consulting. The number of
businesses is expected to increase in 2016.
Aggregate private investment
Aggregate private investment includes
spending by individuals and businesses
on physical structures, equipment and
software. As investment in software and
other equipment increases, businesses
are more likely to use management
consultants. Additionally, firms will use
consultants to understand what aspects
of their business are most profitable and
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where investment should be focused,

boosting industry revenue. Aggregate
private investment is expected to increase
in 2016, representing a potential
opportunity for the industry.
Government consumption
and investment
Although the corporate sector accounts
for the majority of industry revenue,
government agencies are responsible for
the remainder. Industry revenue is

closely linked to government
consumption and investment via public
sector consulting demand. Concerns
about the federal deficit have limited the
potential for further expansion of federal
spending. Government consumption and
investment is expected to increase in
2016; however, continued budgetary
pressures represent a potential threat to
the industry.
Corporate profit
30
20
10
% change
% change

continued
0
-10
-20
Year
-1
-2
09
11
13
15
17
19
21
-3
Year
08
10
12
14
16
18
20
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Current
Performance
Firms in the Management Consulting

industry provide advice and assistance to
businesses, organizations and government
bodies on organizational planning, financial
planning, budgeting and strategic marketing
objectives. The industry is reliant on strong
economic conditions and high corporate
profit, factors that encourage investment in
advisory services as businesses expand and
look to maximize efficiency.
Over the past five years, improving
business conditions have surged industry
revenue forward. A rising number of
businesses and expanding corporate profit
have been key to management consultant
success. Additionally, increased business
outsourcing and rapid digitalization have
boosted growth as firms hire consultants to
help enter emerging and high-growth
product and service segments. As a result,
the industry is expected to grow at an
average annual rate of 5.6% to $252.8 billion

over the five years to 2016. In 2016, a slight
fall in corporate profit and weakness in the
resources sector will limit the industry to an
expected 2.7% increase in revenue.
Business conditions
support demand
Since 2011, the general US economy has

experienced healthy growth, as corporate
profit rebounded along with consumer
spending. According to the Bureau of
Economic Analysis, corporate profit
jumped 10.0% in 2012, which helped
support aggregate private investment
growth of 9.8% in that year. Private
businesses, which account for the vast
majority of industry revenue, began to
invest in new facilities and bring on new
staff as profit margins grew. This helped
precipitate strong 7.7% growth in industry
revenue in 2012, as companies explored

new business opportunities in which to
invest. Management consultants were
hired by a variety of businesses to examine
which business segments were profitable,
while also providing recommendations on
business divisions that were
underperforming or failed to be lucrative.
Over the five years to 2016, aggregate
private investment across the United States
is expected to increase an annualized 5.0%,
and has proved a consistent source of new
demand for consultants.
Clients seek digital

opportunities
Skyrocketing demand for smartphones

and mobile internet connections has
helped boost demand for management
consultants over the past five years.
Although a number of businesses have
cashed in on the rising importance of a
digital presence, many firms have
struggled to keep up with the rapidly
changing landscape of online systems.
Management consultants have benefited

from providing custom computer
application design and development
services to businesses. Management
consultants are increasingly working with
information technology (IT) professionals
to help businesses understand the market
and transform IT functions. In fact,
according to McKinsey & Company and
Industry revenue
12
% change
9
6
3
0
-3
-6
Year 08
10
12
14
16
18
20
22
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Clients seek digital

opportunities
continued
the Interactive Advertising Bureau, the

amount consumers are willing to pay for
services has nearly doubled, which has
primarily been due to the acceleration in

consumer use of wireless through
smartphones and other devices.
Addressing
investment and
equity gaps
Asset management and private equity

companies represent a key market for
management consultants. These firms
look to invest through venture and
growth capital, which is becoming
increasingly attractive when compared
with public equity due to higher returns.
Growing interest in alternative
investments, movement towards
defined-contribution pension schemes
and new financial regulation continue to
alter how companies and individuals
invest their money. The overwhelming
majority of wealth is held in developed
economies; however, emerging
economies are growing at a relatively
rapid rate. Therefore, management
consultants are playing a larger role in
assisting US company strategy,

including advising which emerging
markets to invest in overseas.
Currently, many asset management
and private equity firms are looking to
take over existing operations and invest
in start-up businesses. This trend has
also been exacerbated by relatively low
returns and higher volatility in developed
markets, according to McKinsey Global
Institute. Management consultants have
thus been hired to assist businesses in
considering market opportunities, with a
view to allocating funds for investment.
In many cases, management consultants
are aware of favorable smaller firms, and
as a result assist these firms in attracting
funds from investors.
Industry
consolidation
The Management Consulting industry is

largely fragmented, as a substantial
proportion of the industry consists of
small, nonemployer firms. Over the past
five years, the industry has remained
this way, and no significant change in
market concentration has occurred.
However, larger industry players have
continued to acquire smaller firms with
interests in high-growth services, such
as the purchase of Booz & Company by
PwC in 2014 to form Strategy&.
Nonetheless, the industry has continued
to expand as strong profit margins and
low barriers to entry encourage new
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.
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Industry
Outlook
Over the next five years, strong

macroeconomic conditions are expected to
help drive growth in the Management
Consulting industry. Rising corporate profit
will increase business budgets and,
therefore, increase spending on consulting
services. Additionally, as businesses become
increasingly confident in future conditions,
companies are expected to increase the size
of their workforces and expand investment
in new facilities and operations. Investment
in new capabilities will likely boost demand
for process and operations management
consulting, corporate strategy and
organizational design.
Furthermore, rapid information
technology developments will continue to
be instrumental in developing new
Business conditions
remain healthy
Over the next five years, the industrys

performance is forecast to be underpinned
by steady business conditions. Corporate
profit is projected to grow an annualized
1.9% over the five years to 2021, which will
help boost business sentiment and drive
investment in new business capabilities.
Aggregate private investment, which
represents spending on physical structures,
equipment and software, is forecast to
increase at an average annual rate of 2.8%
over the five-year period. Consequently, US
firms will require assistance in process and
operations management, which includes
logistics consulting, production scheduling
and supply chain management.
Furthermore, as many firms increase
spending and target new markets,
management consultants will experience an
uptick in demand for corporate strategy
solutions, such as leadership development,
mergers and acquisitions and corporate
portfolio design.
Organizational design will also continue
to grow as US businesses increase the size of
their workforces and require assistance in
corporate structure and general operating
abilities. Consultants will continue to
strategies, designs and understanding an

evolving US market. Private sector
investment in information technology is
expected to boom and management
consultants will likely pursue more
solutions that incorporate computer
systems. Moreover, major investment in
life sciences and healthcare over the next
five years will help drive growth for
consultants that assist in merger and
acquisition activity. Consequently, the
Management Consulting industry is
projected to grow at an average annual rate
of 4.1% to $308.9 billion over the five years
to 2021. Major accounting and specialized
prestigious consulting firms are expected to
win the majority of contracts and drive
industry revenue.
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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Business conditions
remain healthy
continued
and are able to integrate audit services with

consulting practices for some of the United
States largest companies.
Digital strategy
demand
The value of information technology in

business operations will only increase
over the next five years and,
consequently, will be a primary driver of
growth and solution offerings.
Management consultants compete with
firms in the IT Consulting industry
(IBISWorld report 54151); however,
services often overlap with management
solutions. Management consultants will
offer new strategy advisory services and
organizational solutions based on the
development of information technology
and how it can be tailored to each firm.
This will include the development of
cases for investment in new technology
and the design of new projects.
Furthermore, technology related
synergies will become key to successful
mergers, acquisitions and divestitures
and consultants will aim to assist
manage system changes while handling
new deals.
Low barriers, strong

profit
Over the five years to 2021, the share of

nonemployer revenue in the industry is
expected to decline slightly, further
increasing market share concentration.
Although smaller enterprises will
continue to enter the industry due to low
barriers to entry and strong profit for
successful start-ups, growth in the
number enterprises is forecast to slow,
growing at an annualized rate of 2.6% to
841,760 over the five-year period.
Employment is expected to increase at
an annualized rate of 3.4% to 2.0 million
people over the five years to 2021. The
majority of employment growth will be
concentrated in larger, more profitable
firms. As independent contractors
Life sciences and healthcare markets

are also forecast to be a boon for
consulting firms. Evolving regulation and
rising demand for healthcare will assist
growth in the consulting market. The
expiration of major patents is driving
growth for merger and acquisition
activity as larger firms seek to invest in
companies with promising research.
Furthermore, tax considerations and
competitive pressures are driving
demand for merger and acquisition
activity, which will be assisted by
management consultants that are able to
provide advisory services. Growth in
these markets is expected to be strong
over the five-year period, with 70.0% of
large companies in life sciences and
healthcare anticipating merger or
acquisitions in the next three years,
according to the 2014 Deloitte Life
Sciences and Health Care Merger and
Acquisition Trends Survey.
Market share concentration
will increase over the next

five years
gradually exit the market and highproductivity employers grow,

employment will naturally shift toward
higher paying jobs. At the same time,
competition between major companies
will intensify, causing top firms to offer
wages for highly skilled computer science
graduates. In the five years to 2021, the
average industry wage is projected to
increase as firms continue to invest in
new highly educated staff.
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Life Cycle Stage
Growth is exceeding overall GDP growth

Increased consolidation, through merger
and acquisition activity, is occurring
among the industrys larger players
% Growth in share of economy
There is widespread acceptance and adoption of the

services being offered, limiting growth in new markets
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
High growth in economic

importance; weaker companies
close down; developed
technology and markets
15
Key Features of a Mature Industry

Revenue grows at same pace as economy
Company numbers stabilize; M&A stage
Established technology & processes
Total market acceptance of product & brand
Rationalization of low margin products & brands
10
Quantity Growth
Many new companies;

minor growth in economic
importance; substantial
technology change
Accounting Services
0
Engineering Services
Tax Preparation Services
Computer Stores
Decline
-5
Shrinking economic
importance
Office Supply Stores

-10
-10
-5
10
15
20
% Growth in number of establishments

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Industry Life Cycle

This
industry
is M
ature
The Management Consulting industry

is in the mature stage of its life cycle.
The industry is characterized by growth
in line with the overall economy, an
increasing number of industry players
and technological change based on
improving efficiency rather than
developing entirely new services. Over
the past five years, the industry has
enjoyed strong growth as a result of
surging corporate profit and new
demand for advisory services as digital
technologies change the way companies
do business. Furthermore, consultants
continue to be a key component in
helping firms navigate a constantly
changing business landscape.
During the 10 years to 2021, industry
value added (IVA), which represents
the industrys contribution to the
overall economy, is projected to
increase an annualized 5.2%, compared
to average annual GDP growth of 2.2%
over the period. The value of
management consulting is well
accepted in the business community,
particularly in the realms of corporate
strategy and organizational design.

Accordingly, the industry has achieved
a high degree of market saturation,
with third-party management
consulting widely considered to be a
vital source of impartial analysis.
This industry is undergoing high
merger and acquisition (M&A) activity.
The M&A activity of the past five years
is expected to continue into the next
five-year period as major companies
scramble for market share, which is a
characteristic of mature industries. In
addition, firms from external industries
are increasingly offering the same lines
of services. In the next five years, large
corporate clients will increasingly look
for firms that offer end-to-end
business solutions (i.e. a firm that is
involved in every step of the process,
from advisory to execution to
assessment). As a result, the distinction
between the services offered by the
Management Consulting industry, the
IT Consulting industry and the
Accounting Services industry will
ultimately blurred.
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Products & Markets
Supply Chain | Products & Services | Demand Determinants

Major Markets | International Trade | Business Locations
Supply Chain
KEY BUYING INDUSTRIES

22
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
Finance and Insurance in the US

The Finance and Insurance industry requires consultancy services for general, actuarial and
compensation consulting.
62
Healthcare and Social Assistance in the US

The Healthcare and Social Assistance industry uses this industry for administrative and general
management consulting services.
92
Public Administration in the US

The Public Administration industry uses a wide range of services offered by this industry in
general management, human resources, budgeting, and financial consulting.
KEY SELLING INDUSTRIES
Products & Services
44312
Computer Stores in the US

Computer stores supply computer hardware and software to consulting firms.
45321
Office Supply Stores in the US

Consulting firms purchase office equipment and stationery from office supply stores.
53112
Commercial Leasing in the US

The Commercial Leasing industry provides office space to consulting firms.
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.
Marketing and sales

Marketing and sales services contribute
an estimated 19.3% to management
consulting in the areas of brand strategy
and design, corporate identity and image
consulting. As companies have
reconsidered existing marketing
techniques in light of digital marketing
opportunities, revenue from this segment
has improved with the rise of digital
technology during the past five years.
Organizational design services are
estimated to account for 13.0% of
management consulting revenue. As the
name implies, organizational design
involves reorganizing a company to
change the way it operates. Such
reorganization may involve providing
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Products & Markets
Products & Services

continued
Products and services segmentation (2016)
7.5%
Financial advisory
4.2%
IT strategy
8.1%
38.5%
Corporate strategy
9.4%
Process and operations

management
13.0%
Total $252.8bn
19.3%
Marketing and sales
advice to firms facing major changes,

making a fresh and independent review
of a companys overall business model,
creating a strategy for global expansion
and evaluating underperforming business
segments. As firms expand
geographically, organizational design
consulting offers solutions to integrate
global operations. Demand for this
service segment is cyclical and is
expected to slightly increase as the
economy continues to recover over the
next five years.
comprises a traditionally large service
group in the management consulting
industry, and makes an estimated 9.4%
of industry revenue. This service area
includes process, physical distribution
and logistics consulting. Under the
heading of logistics consulting,
production scheduling and supply chain
management form a consistent source of
revenue for management consultants.
Profit-motivated companies seek
strategies to generate cost savings and
increase operational efficiency, regardless
of the macroeconomic climate. As a
result, this service segment has
performed well during the past five years.

Human resources advisory includes
compensation and benefits consulting
services, as well as hiring services and
employee retention strategy.
Compensation and benefits consulting
involves designing the salary structure
for an organization in order to efficiently
incentivize workers and attract the best
employees. It can also involve
structuring salary payments to maximize
tax benefits for employees. Employee
retention strategy includes designing
programs around work-life balance and
employee satisfaction.
Financial advisory
Financial advisory services contribute an
estimated 7.5% to management
consulting revenue. Consulting firms
engaged in financial advisory services
provide finance and risk management
executives (such as CFOs) with financial
and economic analysis of the risks and
uncertainties facing their companies.
These uncertainties include business and
legal issues that result from changes in
demand, public policy, financial
conditions, competition, and the
regulatory environment. Financial
volatility increases the difficulty of
providing solutions to these issues, and
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Products & Markets
Products & Services

continued
thus the demand for financial advisory

consulting. This service segment has
been a growth area for the industry over
the past five years.
IT strategy
Information technology (IT) strategy
services contribute an estimated 4.2% to
management consulting revenue.
Although IT consulting is excluded from
this industry (refer to IBISWorld report
54151), management consulting does
include the following IT solutions:
custom computer application design and
development services, computer systems

design, development and integration
services, and IT infrastructure
management services. In some areas,
management consulting firms directly
compete with specialist consulting firms
in the IT consulting industry. However,
many clients have recognized that review
of an organizations structure and
technology are part of an integrated
process. As a result, management
consulting firms increasingly integrate IT
strategy into their services, making this a
growth area during the past five years.
Demand
Determinants
The demand for this industrys services is

closely linked to the availability of
budgetary resources and other
discretionary expenditure by business,
public sector, and nonprofit clients. As
such, business confidence, corporate
profit and government investment are
important factors that strongly affect the
growth of this industry.
The demand for management
consulting services is strongly linked to
the economic cycle. It is particularly
sensitive to business and government
activity levels in areas such as mergers,
acquisitions, financial planning,
feasibility studies, human resources,
strategic planning and corporate profit.
Governments hiring of consultants,
particularly at the federal and state level,
has increasingly become a political issue,
in terms of actual expenditure and the
value obtained from these assignments.
Management consultants must prove that
the value of their services is worth the
money that is spent because the federal

government has a rigid budget.
Unfortunately for industry operators,
expenditure on consultancy services by
governments and businesses tends to be
one of the first areas to be reduced when
the level of business confidence and
economic growth decreases. Slow
economic growth leads to a tightening of
the overall budgetary and financial
resources. In some instances, however,
management consulting can be a
countercyclical industry, whereby
consulting companies are hired to
improve a companys performance
during a downturn.
Global economic conditions, including
changes in clients particular industries
and markets, also affects revenue in the
consulting business. Revenue
fluctuations are also subject to the
introduction of new products, including
competing services, and the effect of
government policies and regulations.
Major Markets
The overwhelming majority of industry

revenue is generated from the private
sector, with an estimated 77.0% of
revenue coming directly from businesses.
Financial services, consumer product and
manufacturing industries represent the

largest private businesses; however, the
industry also garners revenue from
government organizations, individuals
and nonprofit organizations.
WWW.IBISWORLD.COM
Products & Markets
Major Markets
continued
Major market segmentation (2016)
7.8%
8.0%
23.8%
Energy and utilities companies
Life science and healthcare companies
Financial services companies
8.4%
Individuals and non-profit

organizations
9.8%
16.6%
Technology and media companies
Consumer products companies
11.0%
Manufacturing companies
Total $252.8bn
14.6%
Government organizations
Financial services companies

Financial service providers are the
management consulting industrys
largest consumer, accounting for an
expected 23.8% of industry revenue in
2016. This market uses a variety of
services, from strategic planning to
organizational restructuring. Major
international banks, for example, employ
management consultants to streamline
operations and maintain profit levels.
While many businesses have since
reduced their spending as a result of the
recession, this market has also undergone
a significant amount of restructuring,
which has mitigated losses for many
operators. Demand from the financial
service industry is expected to increase
over the next five years as the industry
continues to profit and expand.
Consumer products and
manufacturing companies
The consumer products and
manufacturing markets focus on the
branding and logistics consulting
segments because sales and shipping are
significant factors in these fields. For
example, typical customers in this market
include manufacturers, wholesalers,
retailers and distributors in industries
such as consumer products, apparel,
automotive and aviation and aerospace. In

2016, the consumer products and
manufacturing markets are expected to
account for a combined 27.6% of industry
revenue. Higher US industrial production
and manufacturing activity has increased
demand for management consultants,
who offer expertise in streamlining the
production process. In addition, the
prospect of the high economic growth in
many emerging economies over the next
five years is leading to a rush by many
consumer goods manufacturers to enter
these developing markets. Management
consulting firms will continue to assist in
the growing production in South
American and Asian markets, making
consumer manufacturing a likely source of
demand growth over the next five years.
Government organizations
Government organizations are expected
to account for 14.6% of industry revenue
in 2016. Management consultants are
hired by federal agencies to advise these
organizations on methods to better
administer grants, deliver benefits and
entitlements to their employees and
provide necessary services to their
citizenry. They also advise on public
projects, such as infrastructure, and often
advise on public-private partnership
WWW.IBISWORLD.COM
Products & Markets
Major Markets
continued
projects. Consultants may work for

governments at the federal, state and
local level. Within this segment, work
from federal government agencies is
expected to contribute 11.3% of industry
total revenue, while state government
agencies are expected to contribute 3.3%.
Technology, media and
telecommunications companies
Customers in this market segment seek
management consultants to advise on
business strategy in relation to the wide
field of information technology, including
telecommunications and digital media.
Telecommunications is a rapidly changing
field that is strongly influenced by
technological change. As many businesses
increasingly focus their businesses online,
many engage consultants to adjust their
strategy to take advantage of digital
opportunities. In recent years, digital
technologies have proved a disruption to
existing business processes, resulting in
companies seeking expert advice in how to
respond and take advantage of new
technologies. For example, the
introduction of big data, the introduction
of voice over internet protocol (VoIP), and
opportunities in B2B telecommunications
have all been issues considered by
consultants in the past five years. Because
digital disruption is accelerating, revenue
from this market is expected to grow over
the next five years.
International Trade
The prevalence of many cash-strapped

state and municipal budgets, combined
with debates about a smaller federal
budget has the potential to cut into this
markets share of industry revenue
during the next five years.
Healthcare and life sciences sector
The healthcare market, which is
primarily composed of hospital
management and pharmaceutical
companies, uses the industrys logistics,
human resources and public relations
services. Healthcare science and
technology are rapidly expanding
frontiers, even as economic and financial
pressures reduce profit margins,
intensify competition and constrain the
funds available for investment. This
changing environment is encouraging
healthcare companies to hire
management consultants to aid in
improving cost while maintaining
standards in treating ill patients. This
market is expected to grow over the next
five years.
Individuals and nonprofit organizations

Besides government and private
enterprise, management consultants also
work for individuals, private
endowments, institutions and nonprofits.
Energy and resource companies

Energy and resource companies also take
advantage of management consultants
and are estimated to account for 7.8% of
total revenue in 2016. This includes oil
drilling, gas extraction and mining
companies that use consultants to help
develop corporate branding, navigate
changing regulation and direct
investments. Over the past five years,
energy and resource companies have
fallen as a proportion of revenue,
particularly as oil prices fall and reduce
investment in new facilities.
International trade does not occur in this

industry due to the service-based nature
of activities management consultants
provide. Many of the largest firms in this
industry are, however, global players
generating an increasing proportion of

their revenue through non-US operations
(for more information on this trend, refer
to the Industry Globalization section of
this report).
WWW.IBISWORLD.COM
Products & Markets

Business Locations 2016
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
Additional States (as marked on map)

1 VT
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
WWW.IBISWORLD.COM
Products & Markets
The geographic distribution of

establishments in this industry reflects the
US population distributions as well as the
distribution of overall US business activity,
with increased consulting density in
proximity to key demand markets, including
financial service companies, large
corporations and government clients.
The Southeast contains the highest
share of industry establishments,
accounting for an expected 26.3% of total
industry establishments. In keeping with
its large population, the Southeast
produces the greatest share of industry
revenue and employment.
The Mid-Atlantic region is strategically
important for management consulting
firms. The region accounts for an estimated
18.1% of total industry establishments;
however, consulting firms in this region
contribute 23.0% to industry revenue. This
region comprises the offices of some of the
industrys largest players, who primarily
Distribution of revenue vs. population
serve high-profile clientele, many of which

are located in New York. New York City
ranks first amongst US cities in terms of
Fortune 500 corporations. Also within the
Mid-Atlantic region is Washington, DC,
home to a majority of federal agencies.
Consulting services in these two cities target
the industrys largest- and highest-value
corporate and institutional clients.
Consequently, revenue per establishment in
this region is higher than the national
average, as is the average regional wage.
The West region accounts for an
estimated 16.7% of total industry
establishments. Among states in this
region, California ranks first in industry
revenue with a contribution of 12.8%. With
a large concentration of high-growth tech
and finance firms located in the San
Francisco Bay Area, California produces
the greatest share of management
consulting revenue, establishments and
employment of any state.
Distribution of revenue vs. establishments
30
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
WWW.IBISWORLD.COM
20
Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks

Basis of Competition | Barriers to Entry | Industry Globalization
Market Share
Concentration
Level
Concentration
in
this industry is L ow
Key Success Factors

IBISWorld
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks

hyper fragmented and primarily consists
of small, nonemploying firms that service
narrow geographic or niche markets.
However, the industry still contains a
number of large businesses that are
renowned for their customized business
solutions and organizational and strategy
services. This includes specialized
industry players such as McKinsey &
Company, Bain & Company and Boston
Consulting Group, who maintain a
prestigious reputation in the industry.
Additionally, the largest accounting
firms such as Deloitte and PwC have
extensive industry operations as they
combine audit and tax solutions with
advisory services. In 2016, the largest
industry player is Accenture, though, the
company is estimated to only control

2.9% of total industry revenue.
Consequently, the four largest industry
players are estimated to account for less
than 10.0% of total revenue.
Over the past five years, the
Management Consulting industry has
continued to exhibit a similar share of
market concentration. Although the
largest industry firms have continued to
pursue mergers and acquisitions, these
have not been sufficient to change the
structure of the overall industry. The
most notable acquisition over the fiveyear period was PwCs acquisition of
Booz & Company. The acquisition was
finalized in 2014 and Booz & Company
will now operate under the PwC brand
name as Strategy&.
Ability to compete on tender

Most consultancy tasks are subject to
competition, so competitiveness on price
and service offerings is crucial.
possessing specialized knowledge that

relates to clients operations. Without
this skill base, the consulting firm has
little bargaining power.
Well-developed internal processes

Given the generally labor-intensive
nature of the industry, operators need to
ensure that appropriate cost- and
time-management systems are in place
on a project basis so that these can be
closely monitored.
Access to niche markets

Firms can be more successful if they have
specialized skills or services and can
serve a niche market.
Access to highly skilled workforce

Often, consulting contracts are entered
into on the basis of the consultant
Having good working relationships with

subcontracting building trade specialists
Subcontractors are used to ensure that
quality output can be guaranteed on time
and budget. Many skilled consultants
operate as independent contractors.
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
industry revenue in 2016. Industry

profitability is significantly higher for
larger companies such as Deloitte, who
have recorded margins in excess of
20.0% over the past five years.
Economies of scale and vertical
integration with taxation and audit
procedures allow the company to bundle
WWW.IBISWORLD.COM
21
a number of products and record high

margins. Smaller industry operators tend
to record low profitability in this
industry, which is due to the majority of
earnings being recorded as wages as
opposed to profit.
Profit margins have varied slightly
during the past five years, falling
overall from 10.5% in 2011. Price based
competition has provided downward
pressure on margins, as management
consulting companies lowered their
prices in order gain or maintain clients.
In the next five years through 2021,
industry margins are projected to
marginally increase. Continued
strength in the US economy will lead to
higher employment and a greater
number of US businesses. This will
increase the potential pool of clientele
for management consulting firms and
increase demand for industry services
such as administrative and benefits
consulting. However, increasing

competition from a rising number of
industry entrants in a highly
competitive market place will mitigate
the growth in profitability.
Wages
Wages are the industrys largest expense
and expected to comprise 39.5% of
industry revenue in 2016. Management
consulting firms employ highly educated
individuals, most of whom possess either
a bachelors degree or graduate degree in
business or a related field. In addition,
work in this industry requires a high
degree of client engagement and client
service skills, which commands higher
salaries. Over the past five years, wages
have risen as a proportion of revenue. As
the economy improved many companies
abandoned existing wage freeze policies,
thus allowing total industry wages to
increase in line with revenue growth.
Sector vs. Industry Costs

Average Costs of
all Industries in
sector (2016)
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
WWW.IBISWORLD.COM
22
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

composed of firms with the skills,
expertise and flexibility to meet the needs
of a variety of clients with varying budget
constraints. Given the high level of
competition for large consulting projects
and the importance of repeat business,
there is a strong emphasis placed not just
on the quality of the insights provided,
but also on generating tangible results in
a cost-effective manner.
Internal competition
Before submitting a bid, a management
consulting firm has already submitted a
crucial component of its offer for
scrutiny: its reputation. Over time, a
management consultancy develops a
record of success or failure in terms of
the strategies implemented as a result of
its advice. It is this reputation,
substantiated by past client performance
payments for water, gas, electricity and

communication networks.
Depreciation and other
Other industry costs relate to expenses
such as accounting, insurance, bank
service and legal fees. In addition,
marketing costs are estimated to account
for 1.7% of industry revenue in 2016.
Marketing expenses are an essential
component of a consulting firms
operating costs, as management
consulting companies attempt to
differentiate themselves from
competitors in their own or other related
industries. However, marketing costs are
significantly higher for large industry
players, while smaller firms operating in
local markets rely on recommendations
and reputation in a narrow market.
Depreciation in this industry is relatively
low, estimated at 0.7% of industry
revenue, which includes investment in
office equipment and building locations.
against a benchmark such as stock price,

that is the biggest selling point for
management consultancies, particularly
large industry players.
Increasingly, management consulting
firms advertise as one-stop shops,
boasting an ability to provide insights
and implementation strategies for the
whole of large, complex corporations. In
this area, consolidation among top firms
evidences a race among consulting firms
to expand their service base through
acquisitions and mergers.
Simultaneously, small and large firms
compete for niche markets, promoting
their industry-specific expertise and their
experience in a particular set of topics
important to management (e.g. corporate
strategy, human resources and logistics).
As demand for consulting services fell
during the recession, price-based
competition intensified, with many firms
WWW.IBISWORLD.COM
23
Basis of Competition
continued
offering lower fees or more flexible

contracts. Although the largest firm
accounts for less than 5.0% of industry
revenue, the industrys largest firms
benefit from economies of scale in
marketing and service distribution,
giving them a greater capacity to serve
clients around the country and win
high-value contracts. Small- and
medium-size firms, however, may have
lower overhead costs, enabling them to
provide a high quality service at a lower
cost. Furthermore, small consultancy
firms have greater flexibility and may
undertake consultancies at a strategic
loss in order to establish a hold within a
particular consulting area.
External competition
As a result of this push to train specialist
consultants in a variety of fields,
competition has recently increased from
firms in other industries, especially in the
information technology (IT), finance and
human resource areas. For example, the
services provided by the IT Consulting
industry (IBISWorld report 54151) have
Barriers to Entry
Level & Trend
arriers to Entry
B
in this industry are

Lowand S
teady
Management consulting firms face a

low level of regulation and minimal
startup costs. However, firms
attempting to enter this industry will
face a variety of impediments.
Attracting skilled and talented
employees will be difficult for new firms.
Employees in this industry are highly
knowledgeable, attaining at minimum a
bachelors degree and often possessing a
graduate degree in business or a related
field. As such, total wage costs in this
industry are high, accounting for just
under 50.0% of industry revenue. In
addition, developing a network of clients
that can provide regular flow of work can
be a significant challenge for new
entrants. Work in this industry is done on
a contract basis and successful firms are
increasingly overlapped with this industry

because IT has become more relevant to
management, production and logistics
strategy. Use of the terminology managed
services, which encapsulates this merger
of advisory and implementation services,
is growing. In fact, Accenture is
considered one of the largest players in
both the management consulting and IT
consulting sectors.
In addition to competition from
consulting firms external to this industry,
the Accounting Services industry has
emerged as a significant competitor to
traditional management consultants.
Consulting services represent the topperforming segment for each of the
Accounting Services industry major
players. At PricewaterhouseCoopers (PwC),
for example, the consulting or advisory line
of business accounts for about 30.0% of
total global company revenue. Many of the
industrys largest firms are transitioning
into full-service consulting providers, as
this higher-margin, less-competitive
service offers more growth potential than
traditional audit and assurance practices.
Barriers to Entry checklist

Competition
Concentration
Life Cycle Stage
Capital Intensity
Technology Change
Regulation & Policy
Industry Assistance
High
Low
Mature
Low
Low
Light
None
usually able to secure repeat business

from satisfied clientele.
The industrys largest players bring
strong brand recognition, as these firms
tend to target big-name clients and offer
services across a wide variety of
industries and activities. Such firms can
WWW.IBISWORLD.COM
24
Barriers to Entry
continued
provide services on a global basis and

have the staff and capacity to work on
large projects. In general, firms entering
the industry cannot expect to compete
with these operators, particularly for

high-value clients. New entrants, by
contrast, tend to be highly specialized in
a certain skill set or geographic region.
Industry
Globalization
The industrys largest players, such as

Deloitte, have expanded globally by
establishing branch offices in Europe and
the Asia Pacific and Middle East regions.
Increasing connectivity between
developed and developing economies is
allowing large industry players to
broaden their international approach,
conducting consulting projects across
international borders and increasing
industry globalization. As a result of
further growth opportunities, the overall
level of industry globalization is projected
to continue increasing gradually.
Industry clients demand a high level of
customization of services and personal
attention, minimizing the ability of firms

to offer internationally homogeneous
services. Client firms require advice
tailored to the business culture of the
geographic region in which they operate.
For this reason, the major companies
have focused on developing local offices
around the world; this strategy produces
a cost-effective and qualitatively superior
product compared to alternative
strategies that ship US experts to
countries with which they may lack
familiarity. Larger firms in this industry
are increasing their offices around the
world to build a global management
consulting brand.
Level & Trend

lobalization
G
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)
Deloitte Touche Tohmatsu 2.1%
93.8%
Other
McKinsey & Company 1.2%

Accenture PLC 2.9%
Player Performance
Accenture PLC
Market share: 2.9%
Accenture Ltd. is one of the worlds

leading management consulting,
technology services and outsourcing
companies. Accenture began as the
consultancy arm of accounting firm
Arthur Andersen, but split from its
parent company in 2000, just a year
before Andersen Worldwide effectively
dissolved due to its involvement in the
Enron scandal. Chartered in Dublin but
headquartered in New York, Accenture
has a global presence, with operations in
55 countries and 358,000 employees. In
fiscal 2014-15, the company generated
$31.0 billion in global revenue.
Accentures business is structured
around the five major operating groups of
its clients: consumer goods and services
(e.g. consumer packaged goods or
industrial equipment); communications,
high technology and media; financial
services (e.g. banking and insurance);
resources (e.g. utilities, chemicals and
energy); and government. Within each

group, the company provides core
services in management consulting,
technology and business process
outsourcing. This industry focus allows
Accenture to provide clients with highvalue expertise and insights from
industry experts and professionals with
local market knowledge.
Additionally, Accenture continues to
pursue acquisitions to increase market size.
In 2013, the company acquired Procurian
Inc., a provider of procurement business
process solutions. The acquisition was
aimed at enhancing Accentures
capabilities in procurement business
process outsourcing. In 2015, the company
acquired Agilex Technologies, a provider of
digital solutions for the federal
government. The company also completed
other smaller acquisitions in recent years to
expand company product and service
offerings. These new acquisitions will
Accenture Ltd. (US consulting segment) - financial performance

Revenue
($ million)
(% 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*
*Year-end August **Estimates

SOURCE: ANNUAL REPORT AND IBISWORLD
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
Deloitte Touche
Tohmatsu
Market share: 2.1%
strengthen the companys ability to help

clients in the areas of business solutions,
product lifecycle management, military
healthcare, mortgage processing and
procurement business process outsourcing.
Accentures management consulting
division works closely with professionals
from relevant operating groups to develop
and deliver solutions to clients in the areas
of customer service, finance and
performance management, process and
innovation performance, risk management,
strategy, supply chain management and
organization performance.
Financial performance
Accentures US consulting revenue is
expected to increase at an annualized rate
of 6.7% to $7.2 billion in the five years to
fiscal 2015-16. The period was marked by

strong growth in fiscal 2014-15, in which
all operating groups experienced growth
in revenue from consulting activities. In
fiscal 2014-15, this trend continued, with
the exception of the resources segment
which declined. The period was also
marked by a greater share of income
sourced from the United States, rising to
43.0% of company revenue. Accenture,
like other management consulting firms,
have experienced high growth in digital
services and analytics and will likely
expand these business lines in the next
five years, either organically or through
acquisitions. In fiscal 2015-16, clients
will continue to look to Accenture to
identify operational efficiencies and
deliver cost savings.
Deloitte Touche Tohmatsu Limited

(DTTL) is well-known as one of the Big
Four accountancy firms, but it also ranks
high in consultancy. In 2010, Deloitte was
reorganized as a private British company
headquartered in New York. It operates as
a global professional services network of
member companies working in over 150
countries with about 225,400 employees
in 2015.
A relative newcomer, Deloitte Consulting

(formerly the Deloitte and Touche
Consulting Group) was founded in 1995. In
fiscal 2014-15, industry-relevant consulting
revenue contributed to 34.7% of total DTTL
revenue. Deloitte Consulting provides
management consulting and
implementation planning across industries
in the areas of strategy and operations,
human capital and technology. Based on the
Deloitte Touche Tohmatsu (US consulting operations) - financial

performance*
Revenue
($ million)
(% 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*
*Year-end May **Estimates
Operating Income
($ million)
(% change)
SOURCE: ANNUAL REPORT AND IBISWORLD
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
McKinsey &
Company
Market share: 1.2%
reputation of its parent company, Deloitte

Consulting is able compete with top-tier
players, such as McKinsey, but also has the
global scale to compete against larger firms,
such as Accenture, on the basis of cost.
Deloitte Consulting has drawn on the
financial resources of parent company
DTTL to expand through aggressive
acquisition activity. For example, DTTL
acquired the vast government consulting
practice of BearingPoint (formerly KPMG
Consulting) in 2009. Furthermore, in
2011, DTTL acquired two more
consulting firms specializing in
sustainability. In late 2013, Deloitte
Technology Consulting continued to
aggressively chase growth with the
acquisition of two Australian technology
companies, Quattro and NXG, which
specialize in customer relations
management software and Systems
Application Product (SAP) software.
These acquisitions will enable the
company to better service the needs of
their clients finance functions and will
help solidify Deloittes position as a

leading player in the design and
implementation of next generation
enterprise resource planning solutions.
McKinsey & Company is a premier

provider of management consulting and
a top employer for new MBA graduates.
The company was founded in 1926 in
New York. It currently employs close to
17,000 workers in 109 offices across more
than 50 countries. In 2015, the company
generated an estimated $8.3 billion in
total revenue.
Although McKinsey competes directly
with other major players, it possesses a
competitive advantage in its ability to
attract top corporate and government
clients due to its reputation, as well as its
extensive board relationships. McKinsey
boasts a client list that includes over
90.0% of the worlds 100 largest
companies and two-thirds of the Fortune
1000 list. The company specializes in
management consulting in a number of
specific industries, including the finance,
media and entertainment and consumer

goods sectors. It also provides strategic
advice to clients in areas like information
technology, pricing, corporate finance,
marketing, leadership and organizational
structure and processes. Geographically
based offices act as the main organizing
cells, but the firm maintains crossgeographical practices around industry
sectors and management areas. According
to the company, close to 35.0% of clients
are located in the Americas region.
In September 2013, McKinsey
acquired Henry Rak Consulting Partners,
a premier US-based growth strategy and
analytics consulting firm. Acquisition of
this company will strengthen the
companys ability to develop actionable
growth strategies that identify where and
how companies should compete
profitably, based on an in-depth
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
understanding of actual consumer

behavior. The company also acquired
Lixto Software, a Vienna-based solution,
which will enhance their suite of revenue
management solutions.
revenue to have increased at an

annualized rate of 4.0% to $3.0 billion
over the five years to 2016. McKinsey
stands out among the major players for
consistently positive revenue growth
over the five years to 2016, as it is able to
attract leading clients. Domestic growth
was further boosted by a moderate
improvement in demand as US business
outlook improved.
Although the firms financial records are
not publicly available, IBISWorld
expects McKinseys US consulting
McKinsey & Company (US consulting segment) - financial performance*

Year*
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
While some consolidation occurs among

the industrys larger players, no single
company controls more than 5.0% of the
industrys revenue. Many industry
operators are independent management
consultants. The majority of these firms
account for a very small portion of
market share, so even firms with a 1.0%
market share are significant players.
Even though larger firms have
increasingly pursued expansion through
acquisition, the industry remains highly
fragmented and very competitive.
PricewaterhouseCoopers LLP
Estimated market share: 1.6%

PricewaterhouseCoopers (PwC), is as
UK-based accounting and advisory firm.
The company was founded in 1998
through the merger between Price
Waterhouse and Coopers & Lybrand,

which made it one of the largest
accounting and audit firms in the world.
The business is focused on the provision
of audit and assurance, tax and
consulting services. Additionally, the
company provides human resources,
forensic and other services. PwC is
headquartered in the United Kingdom
and generated $33.4 billion in global
revenue and had about 195,400 staff in
fiscal 2014-15 (latest available data).
PwC operates through three main
business segments: assurance, advisory
and tax. The companys assurance
segment, which includes financial
statement and internal audits, corporate
reporting and regulatory compliance,
comprises the majority of revenue. In
fiscal 2014-15, PwC generated 42.9% of
WWW.IBISWORLD.COM
Major Companies
Other Companies
continued
revenue through its assurance segment;

however, advisory services have
experienced the most growth. In fact,
advisory services accounted for 31.8% of
revenue in fiscal 2014-15, which is up from
23.4% five years earlier. The company is
increasingly moving to provide consulting
services due to increasing demand for
business intelligence and higher profit
margins associated with advisory services.
Over the five years to fiscal 2016-17, PwCs
US industry-specific revenue is expected to
increase an annualized 3.0% to $4.1 billion.
In recent years, the company has finalized
the acquisition of Booz & Company, which
now operates as Strategy& under the PwC
brand, and will bolster US management
consulting revenue.
Marsh & McLennan Companies Inc.

Marsh & McLennan Companies Inc.
(MMC) is a US-based global
conglomerate headquartered in New
York. MMC provides professional
services in two operating segments: risk
and insurance services and consulting.
MMC currently operates in more than
130 countries with 60,000 employees.
In 2015, Marsh & McLennan generated
$13.0 billion in global revenue.
In the past five years, MMC has
become a major presence in the US
management consulting market through
its holdings in Mercer and the Oliver
Wyman Group. Mercer has more than
25 years of experience providing
consulting services in human resources
and related financial advice. The
company counts among its clients a
majority of the companies in the
Fortune 1000 and FTSE 100. Some of its
largest clients include Bristol-Myers
Squibb, Corning and the New York
Times Company. MMCs Oliver Wyman
Group provides economic and
management consultancy through about
4,000 professionals in 26 countries.

Wyman pairs clients with industry
experts specializing in strategy,
operations, risk management and
organizational transformation. Together,
the consulting operations of MMC
account for 47.0% of company revenue.
IBISWorld estimates MMCs US
management consulting revenue in 2016
to be $3.1 billion, representing a 4.7%
increase from the previous year.
Boston Consulting Group

The Boston Consulting Group (BCG) is a
global management consulting firm with
more than 70 offices in over 40 countries.
The firm prides itself on an employeefocused culture and is recognized as one
of the best consulting companies to work
for in Fortune magazine. The company
was formed in 1963 when Bruce
Henderson became the head of a new
management consulting division of the
Boston Safe Deposit and Trust Company.
BCG works with some of the worlds
largest and most innovative companies.
The majority of BCG clients rank among
the 500 largest corporations in North
America, Asia, Europe and Australia.
BCG also advises midsize companies,
nonprofit organizations and government
agencies. Worldwide, the firm also works
on a pro bono basis for worthy
organizations and efforts.
Boston Consulting has been one of the
industrys star performers over recent
years. The company generated $5.0
billion in revenue in 2015, of which $1.6
billion is estimated to be generated in the
United States. This figure is expected to
grow to $1.8 billion in 2016, achieving
annualized industry-specific growth of
9.0%. The majority of growth over recent
years has been the result of geographical
expansion into strategic emerging
markets such as China and India.
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility

Regulation & Policy | Industry Assistance
Capital Intensity
Level
The level
of capital
intensity is L ow
Because the Management Consulting

industry is fundamentally serviceoriented, capital intensity remains low
despite economy-wide increases in the
use of labor-saving technology.
IBISWorld estimates that for every dollar
spent on labor, industry operators spend
an average $0.02 on capital investment.
Both capital depreciation expenditures
and capital intensity have remained
stable during the past five years.
In 2016, direct labor costs account for
about 39.5% of industry revenue. Total
wage costs in this industry are high,
primarily due to the high level of
education and experience required of
management consultants. Further, a
premium is paid for consultants with a
name, reputation, and professional
Capital intensity
Capital units per labor unit

0.5
0.4
0.3
0.2
0.1
0.0
Economy
Professional,
Scientific and
Technical Services
Management
Consulting
Dotted line shows a high level of capital intensity

network that will draw business to the

firm; contracts can be won or lost if a
certain expert enters or departs a
Tools of the Trade: Growth Strategies for Success

Investment Economy
Recreation, Personal Services,

Health and Education. Firms
benefit from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.
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
New Age Economy
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.
Change in Share of the Economy
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.
WWW.IBISWORLD.COM
Capital Intensity
continued
company. The consultation process is

very personalized, and a firms most
respected consultants are often requested
by name.
Because the majority of industry
expenditures go toward personnel costs
rather than the purchase of equipment,
depreciation of these fixed assets
represents just 0.7% of revenue in 2016.
Capital intensity within the Management
Consulting Industry is relatively low
compared to the sector-wide average.
Though still labor-intensive, the other
Technology & Systems Although the Management Consulting

Level
The level
of
Technology
Change is L ow
Revenue Volatility
Level
The level
of
Volatility is M
edium
industries in the sector, Environmental

Consulting Services and Scientific &
Economic Consulting Services
(IBISWorld reports 54162 and 54169,
respectively) have a relatively greater
reliance on costly scientific equipment,
resulting in a higher level of capital
intensity. In contrast, management
consulting firms capital investments are
largely limited to the computer programs,
networking and computer hardware
necessary to conduct analysis and
communicate with clients.
industry benefits from rapid innovations

in communications technologies, the
general mix of inputs required to produce
and deliver consulting services has not
changed dramatically in the past five
years. The industry is labor intensive;
productivity is more dependent on the
human capital embodied in its employees
rather than the technology those
employees put to use. Nonetheless, major
companies in the Management
Consulting industry devote considerable
resources to maintain their technological
infrastructure. Most technological
investments are dedicated towards data
security, as compromising sensitive client
data could result in a loss of business.
The most important technological
innovations for management consultants
are those that improve the speed and

connectivity between firms and their
clients. Familiar communications
technologies, including email and
telecommunications services, enable
firms to quickly and efficiently transmit
time-sensitive information. For large
firms, specialized intranet systems
facilitate information-sharing through
internal company databases, web sites
and documents.
Consequently, consultants can
increasingly take advantage of the
knowledge, techniques and lessons
learned within their company through
access to previous reports and
evaluations. At the same time, many
firms are expanding their access to
external internet-based libraries and
databases for research purposes.
The Management Consulting industry

has a moderate level of revenue volatility.
In the five years to 2016, year-on-year
revenue changes are estimated to average
3.4% in absolute value. Industry revenue
has increased every year from 2011
onward, with growth rates ranging from
7.8% in 2011 to a low of 3.4% in 2013.
Management consulting revenue is
linked to, but not determined solely by,
macroeconomic conditions. Corporate

profit levels determine the availability of
funds private sector consulting, while tax
revenue largely determines the funds
available to the public sector. In some
cases, consulting expenditures are viewed
as discretionary and firms facing
compressed profit margins can quite
often defer them. However, volatility
within the industry can be mitigated by
WWW.IBISWORLD.COM
countercyclical demand, as management

consultants have been employed to
restructure client companies during
periods of slow growth or decline. In
addition, large consulting companies
employ expert consultants in a variety of
A higher level of revenue
volatility implies greater
industry risk. Volatility can
negatively affect long-term
strategic decisions, such as
the time frame for capital
investment.
When a firm makes poor
investment decisions it
may face underutilized
capacity if demand
suddenly falls, or capacity
constraints if it rises
quickly.
fields; this practice can minimize the

effect on revenue of economic shocks
affecting only one or two industries. The
benefits of diversification are limited
however, in cases of widespread
economic crisis.
Volatility vs Growth
1000
Revenue volatility* (%)
Revenue Volatility
continued
Hazardous
Rollercoaster
100
10
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
Five-year annualized revenue growth (%)

* Axis is in logarithmic scale
Regulation & Policy

Level & Trend
he level of
T
Regulation is
Lightand the
trend is S
teady
As a whole, the Management Consulting

industry is subject to a light and steady
level of regulation, with variation
depending on the firms consulting
specialization. While there is no generic
licensing for management consultants,
human resources consultants are subject to
additional regulation and licensing. Human
resources consulting companies, such as
Marsh & McLennan subsidiary Mercer,
provide public and private sector
companies with assistance in the design
and management of their employee
healthcare and pension plans. Firms
engaged in similar benefits and insurance
consulting are subject to the same licensing

requirements and regulatory oversight as
insurance intermediaries. Similarly,
retirement-related consulting services,
including trustee services are subject to
pension law and financial regulation within
the United States under the SEC. Both
health and retirement consultancies must
comply with numerous state and federal
laws governing the protection of health and
other personally identifiable information.
For more information on the legislative
changes facing the Human Resources
Consulting sub-sector, refer to IBISWorld
report 54161b.
WWW.IBISWORLD.COM
Industry Assistance
Level & Trend
he level of
T
Industry Assistance
is N
oneand the
trend is S
teady
The industry obtains no special assistance

or protection from government. The
Association of Management Consulting
Firms (AMCF) provides professional
development opportunities, industry
research, legislative monitoring and
referrals, and other services to its
members. Since the mid-1980s, it has
undertaken an annual survey of the
management consultancy industry in

which it publishes operating and financial
ratios for member firms. Membership is
only open to firms that meet minimum
size requirements and have been in
operation for at least five years. Although
membership is voluntary, members are
required to observe a strict code of
professional conduct.
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
Figures are in inflation-adjusted 2016 dollars. Rank refers to 2016 data.
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
WWW.IBISWORLD.COM
Jargon & Glossary
Industry Jargon
DEFINED BENEFIT PENSION PLANA retirement

pension plan in which an employer commits to paying
its employee a specific benefit for life beginning at his or
her retirement.
DEFINED CONTRIBUTION PENSION PLANA
retirement pension plan in which an employers annual
contribution is specified. The value of future benefits at
the time of retirement is not specified.
MANAGEMENT CONSULTANTA consultant who

provides advice and assistance to businesses and other
organizations on various issues, including management.
STRATEGIC CONSULTINGThe contracting of a
consultant to advise on long-term planning with an eye
toward minimizing costs and maintaining profit, often in
conjunction with the development of new products and
services.
HUMAN RESOURCES CONSULTINGThe contracting

of a consultant for advice on structuring human
resource and personnel policies, employee benefits,
compensation systems and wage and salary
administration.
IBISWorld Glossary
BARRIERS TO ENTRYHigh barriers to entry mean that

new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an
industry.
CAPITAL INTENSITY Compares the amount of money
spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of
depreciation to wages as a proxy for capital intensity.
High capital intensity is more than $0.333 of capital to
$1 of labor; medium is $0.125 to $0.333 of capital to $1
of labor; low is less than $0.125 of capital for every $1 of
labor.
CONSTANT PRICESThe dollar figures in the Key
Statistics table, including forecasts, are adjusted for
inflation using the current year (i.e. year published) as
the base year. This removes the impact of changes in
the purchasing power of the dollar, leaving only the
real growth or decline in industry metrics. The inflation
adjustments in IBISWorlds reports are made using the
US Bureau of Economic Analysis implicit GDP price
deflator.
DOMESTIC DEMANDSpending on industry goods and
services within the United States, regardless of their
country of origin. It is derived by adding imports to
industry revenue, and then subtracting exports.
EMPLOYMENTThe number of permanent, part-time,
temporary and seasonal employees, working proprietors,
partners, managers and executives within the industry.
ENTERPRISE A division that is separately managed
and keeps management accounts. Each enterprise
consists of one or more establishments that are under
common ownership or control.
ESTABLISHMENTThe smallest type of accounting unit
within an enterprise, an establishment is a single
physical location where business is conducted or where
services or industrial operations are performed. Multiple
establishments under common control make up an
enterprise.
EXPORTSTotal value of industry goods and services sold
by US companies to customers abroad.
IMPORTS Total value of industry goods and services

brought in from foreign countries to be sold in the
United States.
INDUSTRY CONCENTRATIONAn indicator of the
dominance of the top four players in an industry.
Concentration is considered high if the top players
account for more than 70% of industry revenue.
Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUEThe total sales of industry goods
and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside
the firm (such as commission income, repair and service
income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from
interest royalties, dividends and the sale of fixed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)The market value of
goods and services produced by the industry minus the
cost of goods and services used in production. IVA is
also described as the industrys contribution to GDP, or
profit plus wages and depreciation.
INTERNATIONAL TRADEThe level of international
trade is determined by ratios of exports to revenue and
imports to domestic demand. For exports/revenue: low is
less than 5%, medium is 5% to 20%, and high is more
than 20%. Imports/domestic demand: low is less than
5%, medium is 5% to 35%, and high is more than
35%.
LIFE CYCLEAll industries go through periods of growth,
maturity and decline. IBISWorld determines an
industrys life cycle by considering its growth rate
(measured by IVA) compared with GDP; the growth rate
of the number of establishments; the amount of change
the industrys products are undergoing; the rate of
technological change; and the level of customer
acceptance of industry products and services.
WWW.IBISWORLD.COM
Jargon & Glossary
IBISWorld Glossary
continued
NONEMPLOYING ESTABLISHMENT Businesses with

no paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.
PROFITIBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a companys profitability. It is
calculated as revenue minus expenses, excluding
interest and tax.
VOLATILITYThe level of volatility is determined by
averaging the absolute change in revenue in each of the
past five years. Volatility levels: very high is more than
20%; high volatility is 10% to 20%; moderate
volatility is 3% to 10%; and low volatility is less than
3%.
WAGESThe gross total wages and salaries of all

employees in the industry. The cost of benefits is also
included in this figure.
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Disclaimer
This product has been supplied by IBISWorld Inc. (IBISWorld) solely for use
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with regard to the completeness or accuracy of the data or information
contained herein, and it accepts no responsibility and disclaims all liability
(save for liability which cannot be lawfully disclaimed) for loss or damage
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Management Consulting in the USMay 2016 1

Help wanted: Improved economic conditions

IBISWorld Industry Report 54161

2 About this Industry

32 Regulation & Policy

20 Market Share Concentration

20 Key Success Factors

20 Cost Structure Benchmarks

Key External Drivers

11 Industry Life Cycle

35 Jargon & Glossary

26 Deloitte Touche Tohmatsu

13 Products & Markets

13 Products & Services

31 Technology & Systems

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

Management Consulting in the USMay 2016 2

About this Industry

Management consultants advise

The primary activities of this industry are

industry excludes establishments

Actuarial, employee benefits and compensation consulting services

The major products and services in this industry are

54121c Accounting Services in the US

Management Consulting in the USMay 2016 3

About this Industry

For additional information on this industry

writes over 700 US

Management Consulting in the US May 2016

Annual Growth 11-16

Annual Growth 16-21

Revenue vs. employment growth

Products and services segmentation (2016)

Key External Drivers

Human resources advisory

Process and operations

Marketing and sales

Life Cycle Stage

Management Consulting in the USMay 2016 5

Executive Summary | Key External Drivers | Current Performance

Management consultants provide

technology has provided new

Key External Drivers

toward digital technology has provided

expands the potential pool of clientele for

Management Consulting in the USMay 2016 6

where investment should be focused,

the remainder. Industry revenue is

Key External Drivers

Management Consulting in the USMay 2016 7

Firms in the Management Consulting

average annual rate of 5.6% to $252.8 billion

Since 2011, the general US economy has

revenue in 2012, as companies explored

Clients seek digital

Skyrocketing demand for smartphones

Management consultants have benefited

Management Consulting in the USMay 2016 8

Clients seek digital

the Interactive Advertising Bureau, the

primarily been due to the acceleration in

Asset management and private equity

assisting US company strategy,