Consultancy Sector to Experience Slower Growth in 2024, Forecasts MCA
The Management Consultancies Association (MCA) has unveiled its latest report, revealing a slight slowdown in the growth of the UK consultancy sector. According to the MCA, the sector saw an 11 percent growth in 2023, a decrease from the previous year’s high of over 20 percent. The report projects a further dip to 9 percent in 2024, before bouncing back to an anticipated double-digit growth of 11 percent in 2025.
Post-Pandemic Surge and Stabilization
The shift in growth rates signifies a return to more sustainable levels following the post-pandemic surge. During this period, consulting services were in high demand, driving growth rates to exceed 20 percent. Despite the recent slowdown, a significant 73 percent of consulting leaders stated that growth in the last year met or exceeded expectations, albeit a drop from 85 percent the previous year.
AI and Emerging Tech Lead the Way
Looking forward, the survey indicates that consulting services related to AI and emerging technology are seen as the biggest opportunities for growth. This trend reflects the industry’s shift towards digital transformation and the growing demand for specialist expertise in these areas. However, the report also warned of potential challenges, with reduced client spending and the impact of the UK economy causing concern among consulting leaders.
Outlook for Retail, Leisure, and Sustainability Services
The retail and leisure sector, in particular, is expected to see less growth in consulting due to a slowdown in activity. Sustainability services, while still important, may also grow at a slower pace as economic challenges prompt clients to prioritize immediate business operations.
MCA’s Chief Executive, Tamzen Isacsson, remains optimistic for the sector’s future despite these challenges. She emphasizes the importance of the consulting sector to the UK and notes that business confidence benefits from stable political and economic conditions. With a busy election year ahead, the economic outlook and growth rates for the consulting sector could be influenced significantly.