The consulting industry had a good year in 2021, with the MCA showing double digit growth. Revenues hit more than £14B for 2021; here is a summary of their review:
2021 in review
As the market was hit with the pandemic, many expected the worst for the consulting sector. However, MCA released early estimates of the UK management consulting industry’s performance in the pandemic claiming the industry was actually still seeing revenues expand by around 2.5%. In the update halfway through 2021, the industry had grown by a further 4.5%, to hit revenue value of £12.52 billion.
With the year in recap, the positive growth track continued up to 16% growth thanks to the role that firms played in supporting thousands of clients across the UK in difficult and transformational times. This would take the revenues of the industry to c.£14.5 billion.
How 2022 is planned
MCA is not expecting this growth to slow down for the next year. MCA members estimate that the sector will continue to boom by 13% through 2022, as clients will need a guide to help them navigate a post-pandemic world.
As the market recovers post-covid, some factors that will enhance growth in 2020 will be digital, supply chain and sustainability concerns among clients.
Digital technology will be a big focus for the next year as clients look to adapt their working schedules to the hybrid demands of post-pandemic life. Others are expecting another big focus will be on sustainability challenges for clients and strengthening supply chains. The number expecting sustainability demands doubled from last year’s survey to 56%, as did those anticipating supply chain work – now 35%.
Despite the growth, the industry still has its challenges. Consultants especially expect hybridised work to provide challenges in their own firms – with 67% citing the requirement for flexible/remote working as the most significant issue. However, this does not mean the consultants are joining the great resignations.
Employees seem willing to cut their employers some slack as they look to accommodate more flexible hours, or working from home – and 82% of respondents said they were not seeking a new role either in consulting or a different industry, an increase from 77% last year.
At Polestar, we have and are working with clients in the consulting industry. 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 for 2022!
As client demand continues to drive double digit growth the industry remains an attractive career option for the brightest talent in our country, but firms must ensure that training and development continues to be world class and that the generation that joined in the pandemic is able to benefit from learning in both digital and face to face settings