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January 2018
Management Consulting
Sectorwatch
Over the past five years, the Management Consulting industry has been successful as rising corporate profitability and increasing business expenditure resulted in higher demand for advisory services. In recent years, demand for this industry has come from a variety of sectors. Demand was strong from financial institutions and professional firms, and healthcare companies have also been a boon to the industry as well (IBISWorld, 2017).
Industry Trends:
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants
