Help wanted: Increases in corporate profit and the total number of businesses will bolster industry growth

Over the five years to 2017, the Management Consulting industry in California has been successful as stronger corporate profitability and increasing business expenditure resulted in higher demand for advisory services. Over the five years to 2022, the industry is expected to grow in line with the overall US economy. IT 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, nonemploying operators. Over the five years to 2022, industry revenue is forecast to increase at a faster rate than during the previous five-year period...read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 12-17
0.9%
Forecast Growth 17-22
Profit
Employment
116,264
Businesses
19,751

Industry Threats & Opportunities

  • IT and healthcare will continue to be key growth areas for the industry
  • A California economy with high levels of investment has encouraged growth in industry revenue
  • Investment in new capabilities will likely boost demand for industry services
  • Industry Report - Starting a New Business Chapter

    Management consulting firms face a low level of regulation and minimal startup costs. However, firms attempting to enter this industry will face some impediments. For example, attracting skilled and talented employees will be difficult for new firms. Employees in this industry are highly knowledgeable, attaining at minimum a bachelor's degree and often possessing a graduate degree in business or a related field. As a result, total wage costs in this industry are high, accounting for more than 40.0% 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 usually able to secure repeat business from satisfied clientele...purchase to read more.

    Additional Insights for the Management Consulting in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Management Consulting in California Industry are

  • Ability to compete on tender
  • Well-developed internal processes
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Corporate Profit in California and Aggregate private investment in the Management Consulting in California industry impact industry performance..

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    What's in this report

    What is the Management Consulting in California Industry?

    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 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.

    Industry Products
  • Corporate strategy
  • Marketing and sales
  • Organizational design
  • Process and operations management
  • Human resources advisory
  • Financial advisory
  • IT strategy
  • Industry Activities
  • Actuarial, employee benefits and compensation consulting services
  • Administrative and general management consulting services
  • Marketing consulting services
  • Process and logistics consulting services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate Profit in California
  • Aggregate private investment
  • Government consumption and investment
  • Number of businesses

  • Current Performance
  • Business conditions and demand
  • Technology integration drives employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Business conditions and demand
  • Technology and wages
  • Table: Management Consulting in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Management Consulting in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Utilities
  • Manufacturing
  • Finance and Insurance
  • Healthcare and Social Assistance
  • Public Administration

  • Key Selling Industries
  • Commercial Leasing
  • Computer Stores
  • Office Supply Stores

  • Products & Services
  • Corporate strategy
  • Marketing and sales
  • Organizational design
  • Process and operations management
  • Financial advisory
  • Human resources advisory
  • IT strategy
  • Chart: Management Consulting in California Industry Products and Services Segmentation

  • Major Markets
  • Financial services companies
  • Government organizations
  • Consumer products companies
  • Manufacturing companies
  • Technology and media companies
  • Life science and healthcare companies
  • Energy and utilities companies
  • Individuals and non-profit organizations
  • Chart: Major Market Segmentation for the Management Consulting in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Management Consulting in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Management Consulting in California Industry

  • Accenture PLC, Deloitte Touche Tohmatsu Limited, McKinsey & Company, Marsh & McLennan Companies Inc.,
  • Table: Accenture PLC - financial performance
  • Table: Deloitte Touche Tohmatsu Limited - financial performance
  • Table: McKinsey & Company - financial performance
  • Table: Marsh & McLennan Companies Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Management Consulting in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Management Consulting in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate Profit in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Defined Benefit Pension Plan
  • A 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 Plan
  • A retirement pension plan in which an employer's annual contribution is specified. The value of future benefits at the time of retirement is not specified.
  • Human Resources Consulting
  • The contracting of a consultant for advice on structuring human resource and personnel policies, employee benefits, compensation systems and wage and salary administration.
  • Management Consultant
  • A consultant who provides advice and assistance to businesses and other organizations on various issues, including management.
  • Strategic Consulting
  • The 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Management Consulting in California Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Management Consulting in California industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Management Consulting in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Management Consulting in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Management Consulting in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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