The Management Consulting Association (MCA) released a press release on performance and outlook for the consulting sector.
In terms of numbers, consulting growth increased by 18% in 2021 to £14.4 billion, up from 4.5% in 2020 as clients sought external support during periods of major disruption, digital transformation and a renewed focus on sustainability priorities. This positive trend is expected to continue for the next two years.
This led to an increase in job prospects and offices, as 14% more jobs were supported by the sector in 279 offices across the whole of the UK, with the number of graduates, apprentices and school leavers increasing year on year.
There are now 88,000 management consultants employees across the country, and hiring has increased in offices outside of London in cities such as Manchester, Leeds, Birmingham, Glasgow, Cardiff and Belfast.
For these new employee prospects, training and professional development increases across industry was up 25%.
In terms of service and sector breakdown, the fastest increase was experienced in Infrastructure (up 34%), Manufacturing (29%) and Energy Sectors (21%), as businesses kick started new projects delayed due to the pandemic and firms focused on digital transformation and achieving sustainability goals.
The strongest growing sectors for consultancy spend were primarily in the private sector with government and public sector expenditure the 6th largest growing sector at 16%, just below financial services and Digital and Technology. The proportion of consultancy work in the public sector as a share of the total remains fairly stable with around £3.7 billion spent by Government at a local and national level on consultancy services in the last period.
Smaller firms achieved the most notable growth up 27% year on year. Exports increased year on year, now 30% of all revenue generated, as global clients turn to British firms for world-class consulting services.
At Polestar, we are working with clients in the consulting industry and have experience working with many previously. If you haven’t already, check out our recent deal completion in the consulting sector as J.S. Held Expands Global Investigations Practice with the Acquisition of GPW Group.
If you are consulting firm looking to grow your business, this is the perfect time as the business is booming. We would love to hear your plans and see if we can help achieve your goals.