The economic crisis caused by the stalemate with the COVID-19 pandemic has hit a number of sectors, including tourism, hospitality, small and medium-sized enterprises, and declining economic activity is directly affecting the consulting industry.
According to research by Consultancy.org globally, the branch will face losses of as much as $ 30 billion in 2020.
The consulting industry has grown steadily since the last major economic crisis in 2008, reaching a market value of $ 160 billion.
Source Global Research conducted a survey with data from consulting firms around the world and one of the main conclusions of the research is that this sector may suffer a decrease in market value of 19%.
The European market generates about 12 billion euros in revenue from Germany, Austria and Switzerland alone. Germany is the second largest country in Europe in terms of consulting services, behind the United Kingdom, which also faces problems in the industry after Brexit and has seen the slowest growth of just 4% in the last seven years. One of the main problems in the German market is the decline, i.e the complete stagnation in the automotive industry, which withdrew its activities, and thus the spending of consulting services and marketing campaigns.
How will the European consulting industry deal?
Forecasts are that the European consulting services market will recover more slowly from the economic crisis caused by COVID-19 compared to the US. In the United States, the adoption of new technologies and the development of competitiveness are much more efficient and faster than in the European market.
Consulting firms will need to diversify the services they offer and adapt to this critical situation. The biggest hit will be companies and experts who work directly for customers as their separate department, while those who are external consultants and can offer and perform their services from anywhere, including working from home, will find it easier to adapt to new challenges.
Where are the chances for consultants?
During the crisis itself, it turned out that certain sectors and branches did not have negative consequences from the economic downturn. This is especially true for e-commerce, product delivery, the service sector and food sales. It is in these sectors that new economic opportunities will be created, and companies will need consulting services to open e-shops, change the supply chain, find new distribution channels and similar services.
Consultants working in the financial sector will also have less influence. Financial services, such as banks, act to support the recovery of the economy. So consultants specializing in financial aid will be among the most sought after.