Global manufacturing work for management consultants increased 5 per cent in 2012 to $14bn. This finding was published today in a Source Information Sources report, which also found that the recovery of the critical US market (over $5bn in size) has been very influential on global growth. The report found that the UK market is now almost $1bn.

 

The report, which surveyed consulting clients, found that more than a third of those interviewed are open to spending more on consultants, and almost half say they expect their spending will increase in 2014. 

 

Consulting clients in manufacturing are also far more likely than any other sector to say that results-based pricing would encourage them to buy significantly more consulting than they currently do. However, the report notes that clients tend to show a lot of interest in results-based pricing until they discover that it can be difficult to administer, and can set up a situation in which the client ends up paying significantly more for a successful project. 

 

Source predicts that overall global growth in 2013-14 will be between 5-10 per cent with operational improvement the service in greatest demand. The report found that over half (54 per cent) of clients expect an increase in operational improvement – with more than a quarter saying this increase will be in the double digits. Next was technology consulting with 52 per cent of respondents expecting spending to increase and almost half of those anticipating an increase above 10 per cent. In contrast, marketing and selling and financial management services were in least demand but even here the news is still good, with more than a third of respondents saying they expect spending increases in these areas.

 

B.J. Richards, Senior Analyst from Source said:

 

Whilst the overall growth of the sector was somewhat muted in the UK during 2012, consultants in the field saw robust demand for operational improvement in supply chain, one of their more traditional areas of expertise. From this, client work on operational excellence expanded into the front-office parts of the organisation. The report says that there are opportunities developing in the consumer products sub-sector, as clients strengthen their marketing and selling competencies, and after four years of recession, consumer product companies appear to be investing in growth and consultants once again.

 

The implementation of a project is key to manufacturing clients, and the report found that The Big Four take the top honours here with 79 per cent of clients finding them somewhat or highly credible for implementation services. The Big Four were closely followed by technology firms as manufacturers hold IT in very high esteem, as the very nature of their work means they are more likely than most other types of clients to have sophisticated IT skills in house. Niche specialty firms and strategy firms are also regarded highly by manufacturers.