As everyone knows, the UK is currently in a stage of economic growth, so generally things are great for those in employment. However things are even better for management consultants, as the industry is simply thriving due to the UK’s economic growth.
It is estimated that the entire UK consulting industry total fee income in now worth up to £9bn a year. Members of the Management Consultancies Association (MCA) fee income rose 8.4% to £5.2bn in 2014, which significantly surpasses the 2.8% growth that the UK economy achieved as a whole.
Stats for the MCA are certainly looking good – MCA members represent 60% of the management consulting sector in the UK and have managed to outperform almost every other sector in the economy. Just the Big Four firms managed to achieve a 10.75% increase in revenue, and the total number of consultants employed by member firms increased by 12% in 2014. Financial services are a big part of the MCA income, accounting for 33% in total, and £1.4bn of MCA’s income came from digital consulting, which is an increase of 27% from 2013.
The reasons for MCA’s income increase can be attributed to several major infrastructure projects speeding up, including the Thames Tidway and Crossrail, resulting in consulting incomes increasing by 42%. This figure is only expected to increase, with the water utilities’ latest AMP6 investment cycle, the planned expansion of UK airport capacity and creation of Highways England, and the continued recovery of the public sector.
Author of the report and director of the MCA Think Tank, Paul Connolly, speaking to Accountancy Age said: “UK consulting continues its recovery at a rate faster than the wider economy, including most other professional services. Consultants are supporting businesses in getting ‘match fit for growth’ – either through developing existing capabilities or through launching new propositions.”
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