Professional Services Market Study 2014

Professional Services Market Study 2014
- Market assessment of the Dutch professional services industry -
November 2014
Copyright © 2014 Consultancy.nl. All rights reserved.
Table of Contents
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
Consultancy.nl
Professional Services Market Study 2014
2
Introduction
Research Question
– Key Question –
What is the size of the Professional Services industry in the Netherlands?
Definition of Professional Services
Market Definition
Accounting
Advertising
Architecture
Engineering
IT Consultancy*
Legal
Management
Consulting
Market
Research
Notary
Public Relations
Scientific
Research
Other
Professional
Services*
Definition of professional
services is for a large part
in line with the definition
applied by the CBS, with
two differences
* Note that ‘IT consultancy’ (SBI ’08 code 62.02) and ‘Other professional services’ (SBI ’08 code 82) are not categorised as professional services by the CBS (SBI ’08 code M). For the purpose of this study both segments have been
added to the definition of the professional services market. ‘Other professional services’ in addition includes professional services not explicitly classified in one of the other categories.
Market Scope
Companies of
all sizes in scope
Geographic Scope
• Publicly available information:
Government statistics, annual
reports of firms
100+ FTE
50 – 100 FTE
10 – 50 FTE
+ UK benchmark
1 – 10 FTE
Consultancy.nl
Data Scope
Companies located
in The Netherlands
Professional Services Market Study 2014
• Analyst firms, economic
institutions, research
departments of banks
• Databases: Statline, Kamer van
Koophandel, Company.info, ONS
3
Table of Contents
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
Consultancy.nl
Professional Services Market Study 2014
4
Professional Services Industry
Development of Dutch Enterprises
• There currently are more than >1,4 million enterprises in NL, an increase of 114% over the past 15+ years
• The number of active enterprises has increased every single year (CAGR of 5,2%) with the exception of 2002
Development of total number of Dutch enterprises (1999 – 2014)
1.600.000
Other firms
Professional Services
+ 756.960
enterprises
1.400.000
5,4%
1.365.960
= +113%
1.387.995
1.428.005
1.296.105
1.227.795
1.158.410
1.200.000
+32% * 987.365
1.000.000
1.088.375
+113%
1,2%
800.000
671.045
679.565
688.655
693.430
689.180
705.180
719.405
2000
2001
2002
2003
2004
2005
746.365
600.000
400.000
+281%
200.000
0
1999
2006
15%
2008
2009
2010
2011
6,4%
6,0%
5,6%
5,4%
2012
2013
2014
10,2%
10%
5%
2007
1,3%
1,3%
0,7%
2,3%
2,0%
3,7%
Change of
definition
1,6%
-0,6%
2,9%
0%
-5%
Consultancy.nl
Year over year growth of total number Dutch enterprises
Professional Services Market Study 2014
* See Slide 35 in the Appendix for details
5
Professional Services Industry
Development of Dutch Enterprises – Industry
Sector
Development of Enterprises per Industry
Number of companies per sector
% Growth
% Growth
2007 - 2014
2013 - 2014
+2,9%
+13,0%
1.400.000
1.428.005
1.387.995
3,5%
Administrative & Support Services
3,5%
4,0%
Manufacturing
4,1%
Information & Communication
4,9%
Agriculture, Forestry & Fishing
5,5%
Financial & Insurance Activities
5,9%
Arts, Entertainment & Recreation
6,2%
Other Service Activities
7,8%
Human Health & Social Work
9,8%
Construction
14,9%
Wholesale & Retail Trade
21,0%
Professional Services
4,0%
+24,4%
1.200.000
1.227.795
4,0%
3,6%
5,1%
4,3%
1.000.000
800.000
987.365
3,4%
4,9%
3,7%
3,7%
5,6%
5,7%
6,1%
5,7%
6,2%
5,6%
6,0%
4,8%
6,4%
600.000
1,6%
16,9%
1,0%
60,9%
5,4%
5,8%
-0,1%
42,1%
77,1%
0,9%
-1,0%
40,1%
9,2%
5,8%
5,4%
6,8%
46,6%
7,5%
10,0%
155,6%
7,3%
39,6%
0,8%
10,9%
4,4%
15,4%
10,2%
10,5%
-0,2%
16,8%
400.000
19,5%
20,6%
74,3%
4,8%
19,6%
200.000
17,4%
9 different sectors
(see Slide 32 for details)
Professional services is the largest
sector in the Netherlands, based
on the number of companies
0
2007
Consultancy.nl
2010
2013
2014
Professional Services Market Study 2014
6
Professional Services Industry
Development of Professional Services
• The professional services industry consists of ~300,000 companies, of which ~86% is freelancer
• Over the past 15+ years, the industry has grown by 281% – accounting for 21% of the total number of NL enterprises
Development of Professional Services firms (1999 – 2014)
%
350.000
+ 220.705
enterprises
300.000
= +281%
299.245
+8%
278.270
285.670
IT Consultancy
240.080
Advertising
221.620
Accounting
199.935
200.000
+40%
*
6 categories
(see Slide 33 for details)
257.790
250.000
CAGR
Engineering
171.665
150.000
+6%
100.000
78.540
81.760
82.450
88.915
111.155
113.630
123.080
Other Professional Services
- Industrial design consultancy
- Translation and interpretation
- Other professional services n.e.c.
91.080
50.000
Management Consulting
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
19,6%
19,9%
20,4%
20,6%
21,0%
18,4%
19,1%
25%
20%
15%
15,8%
11,7%
12,0%
12,0%
12,8%
15,8%
16,5%
17,4%
13,2%
9,3
Size
% Share
Freelance
86%
Small
10%
Boutique
2%
>Medium
2%
0
Rounded
Professional Services as % of total NL enterprises
Consultancy.nl
Professional Services Market Study 2014
* See Slide 35 in the Appendix for details
7
Professional Services Industry
Industry Breakdown 2014
Industry
# Firms
Growth
Breakdown by employee size (2014)
Freelance
Boutique
Small
Medium
Large
2 - 5 FTE
5 - 10 FTE
10 – 50 FTE
50+ FTE
3,6%
2,3%
0,32%
2,7%
1,5%
0,17%
3,6%
2,7%
0,24%
Accounting
29.480
10%
Advertising
29.090
10%
Architecture
6.325
2%
Engineering
30.070
10%
82,6%
10,8%
3,2%
2,9%
0,58%
IT Consultancy
14.325
5%
83,2%
9,5%
3,1%
3,5%
0,77%
Law*
8.185
3%
4,1%
0,61%
Management
Consulting
91.200
30%
Market Research
5.550
2%
Notary
1.405
1%
Public Relations
2.660
1%
Scientific
Research
3.345
1%
Other Professional
Services
77.610
26%
299.245
Rounded
Consultancy.nl
79,2%
83,6%
78,6%
14,5%
11,9%
14,9%
70,4%
90,1%
82,3%
17,9%
7,5%
1,2%
11,1%
47,7%
7,0%
3,1%
18,5%
84,6%
74,1%
88,8%
10,2%
11,7%
7,7%
1,0%
2,8%
5,2%
1,6%
Professional Services Market Study 2014
43,9%
83,1%
45,7%
107,8%
70,7%
109,8%
0,54%
11,7%
2,3%
6,7%
1,5%
35,7%
0,13%
3,0%
21,7%
(2007 – 2014)
0,36%
33,9%
16,1%
0,19%
2,24%
0,47%
* Looks only at Law firms, other Legal service
providers included in the category ‘Other’
36,4%
56,3%
89,1%
8
Professional Services Industry
Employee and Concentration Analysis 2007 vs. 2014
Development by employee size (2007 – 2014)
+74%
124.220
3.480
- 245
135
- 10
+ 2,7%
- 0,19%
+ 0,11%
- 0,01%
299.245
+ 127,580
enterprises
171.665
+ 97,4%
~97% of the growth in enterprises
can be attributed to freelancers
171.665
2007
2007
2014
299.245
Freelance
Boutique
Small
Medium
Large
1 FTE
2 - 5 FTE
5 - 10 FTE
10 – 50 FTE
50+ FTE
2014
Development of concentration (Medium + Large enterprises as a share of total)
-49,5%
Concentration ranges from 1.1% to 12.1% depending on industry
Large
Medium
3,6%
2,6%
11,4%
-37,3%
-27,9%
-34,4%
2,6%
-21,7%
12,1%
-66,3%
8,7%
-27,2%
24,0%
3,5%
4,3%
9,0%
-29,0%
7,5%
5,8%
4,8%
2,9%
-26,6%
-51,7%
-20,6%
4,7%
-39,8%
4,9%
3,5%
1,8%
1,7%
Weighted
Avg. 2014
4,1%
3,1% 2,4%
2,0%
1,1%
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
2007 2014
Accounting
Advertising
Architecture
Engineering
IT
Consultancy
Law
Management
Consulting
Market
Research
Notary
Public
Relations
Scientific
Research
Other
Consultancy.nl
Professional Services Market Study 2014
2,26%
9
Table of Contents
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
Consultancy.nl
Professional Services Market Study 2014
10
Market Size per Industry
Accounting Firms
299,245
10%
Development of enterprises by employee size
Growth ’07 – ‘14 = 35,7%
5,4%
5,0%
28.505
5,2%
29.480
28.855
Per employee range
25.975
24.745
23.525
21.730
2009
2010
2011
2012
2013
Costs
9.989
9.743
EBIT
EBIT Margin
Medium
675
2,3%
Small
1.075
3,6%
Boutique
4.275
Freelance
23.360
-20,8%
9.860
-5,3%
14,5%
8,9%
79,2%
47,0%
29.480
Internal employees
9.727
18,5%
1.815
2,3%
External/hired employees
-1,0%
1.807
115,5
116,5
114,2
112,1
28,5
27,5
27,2
27,2
17,7%
17,6%
Consultancy.nl
0,3%
Development of employees (x000)
18,2%
Industry Size
95
2014
Development of financials (€/x million)
Revenue
Large
27.365
8,3%
2008
2007 - 2014
2,2%
1,2%
4,2%
2007
Growth
# Firms
1.733
1.723
-8.173
-7.936
-8.127
-8.004
2009
2010
2011
2012
Professional Services Market Study 2014
-2,4%
87,0
89,0
87,0
84,9
2009
2010
2011
2012
%
CAGR
11
Market Size per Industry
Advertising Agencies
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 43.9%
4,3%
7,0%
29.090
28.185
Per employee range
25.685
23.995
22.210
20.215
2007
2008
2009
2010
2011
2012
2013
Costs
EBIT
6.646
6.223
11,1%
50
0,2%
Medium
450
1,5%
Small
795
2,7%
Boutique
3.470
Freelance
24.325
-9,1%
11,9%
External/hired employees
6.329
13,7%
57,0%
Internal employees
+1,7%
13,7%
875
695
4,5%
83,6%
54,2
55,9
23,6
25,1
10,5%
693
-9,1%
Development of employees (x000)
EBIT Margin
6.387
-5,3%
29.090
2014
Development of financials (€/x million)
Revenue
Large
26.800
8,0%
9,9%
28.100
2007 - 2014
3,2%
0,3%
4,9%
10%
Growth
# Firms
866
57,9
57,0
26,1
26,6
-0,7%
Industry Size
Consultancy.nl
-5.530
-5.951
-5.512
-5.463
2009
2010
2011
2012
Professional Services Market Study 2014
30,6
30,8
31,8
30,4
2009
2010
2011
2012
%
CAGR
12
Market Size per Industry
Architecture Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 83.1%
5.325
5.025
2,6%
6,7%
3.685
3.455
2007
2008
Per employee range
10,2%
20,6%
6.325
6.255
6,0%
4.560
3.780
2009
2010
2011
2012
2013
Large
15
0,2%
Medium
170
2,7%
-35,8%
Small
225
3,6%
-26,2%
Boutique
945
Freelance
4.970
Costs
1.406
1.339
14,4%
EBIT
1.053
78,6%
140,1%
17,5
16,2
4,7
125
Internal employees
-7,4%
18,9
10,2%
194
21,2%
External/hired employees
11,9%
202
14,9%
Development of employees (x000)
EBIT Margin
1.221
14,5%
-57,1%
6.325
2014
Development of financials (€/x million)
Revenue
2007 - 2014
1,1%
17,5%
2%
Growth
# Firms
15,0
5,0
125
4,2
4,7
14,2
Industry Size
Consultancy.nl
-1.204
-1.145
-1.097
2009
2010
2011
-928
2012
Professional Services Market Study 2014
2009
12,5
12,0
2010
2011
%
CAGR
-27,5%
10,3
2012
13
Market Size per Industry
Engineering Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 45.7%
3,3%
4,8%
4,0%
11,3%
13,5%
29.350
28.415
30.070
29.360
27.120
Per employee range
26.070
20.635
2007
2008
2009
2010
2011
2012
2013
Costs
EBIT
12,3%
12,1%
Industry Size
Consultancy.nl
0,6%
2,9%
Medium
865
2,9%
5,5%
Small
950
3,2%
Boutique
3.250
Freelance
24.830
10,8%
4,8%
82,6%
59,5%
30.070
Internal employees
-1.2%
12.275
12,0%
1.495
-3,1%
External/hired employees
11,0%
1.486
175
Development of employees (x000)
EBIT Margin
12.537
12.360
12.047
Large
2014
Development of financials (€/x million)
Revenue
2007 - 2014
2,4%
0,0%
23.430
10%
Growth
# Firms
1.507
118.4
117.5
116.2
114.2
33,6
30,0
30,7
30,8
-1.7%
1.345
-10.562
-10.865
-11.030
-10.931
2009
2010
2011
2012
Professional Services Market Study 2014
84,8
87,5
85,5
83,4
2009
2010
2011
2012
%
CAGR
14
Market Size per Industry
IT Consultancies
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 107.8%
3,7%
3,6%
8,1%
32,4%
13.355
14.350
13.840
14.325
14.265
Per employee range
35,4%
9.335
6.895
5%
2008
2009
2010
2011
2012
2013
Costs
EBIT
EBIT Margin
Large
110
0,8%
Medium
500
3,5%
Small
445
3,1%
23,6%
Boutique
1.355
9,5%
28,4%
Freelance
11.915
83,3%
47,1%
83,2%
134,5%
14.325
2014
Development of financials* (€/x million)
Revenue
2007 - 2014
0,4%
-0,6%
12.355
2007
Growth
# Firms
Development of employees* (x000)
Indicative
Indicative
+1,8%
9,4%
8,5%
Consultancy.nl
61,8
63,8
65,2
2009
2010
2011
2012
8,9%
7,8%
722
622
Industry Size
7.934
7.872
7.674
7.334
62,8
709
617
-6.712
-6.951
-7.254
-7.225
2009
2010
2011
2012
* Indicative, financials and employee development
estimated based on share within IT services market
Professional Services Market Study 2014
%
CAGR
15
Market Size per Industry
Law Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 70.7%
Growth
# Firms
2007 - 2014
5,5%
2,6%
6,3%
7,8%
8.185
13,1%
7.565
Per employee range
7.120
9,6%
6.605
11,2%
Large
50
0,6%
11,1%
Medium
335
4,1%
6,3%
Small
570
7,0%
2,7%
Boutique
1.465
Freelance
5.765
7.760
5.840
5.330
4.795
17,9%
36,9%
3%
2007
2008
2009
2010
2011
2012
2013
Revenue
Costs
EBIT
EBIT Margin
105,2%
8.185
2014
Development of financials* (€/x million)
70,4%
Development of employees* (x000)
Indicative
Indicative
+0,7%
3.224
3.305
3.158
20,5%
20,0%
3.263
33,4
33,4
33,8
34,1
2009
2010
2011
2012
20,2%
19,1%
644
Industry Size
Consultancy.nl
647
668
622
-2.580
-2.511
-2.638
-2.640
2009
2010
2011
2012
* Indicative, financials and employee development
estimated based on share within legal market
Professional Services Market Study 2014
%
CAGR
16
Market Size per Industry
Management Consulting Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 109.8%
83.445
15,4%
91.200
86.895
75.740
Per employee range
23,1%
70.000
60.635
53.490
43.460
2007
2008
2009
2010
2011
2012
2013
Revenue
Costs
EBIT
Large
120
0,1%
Medium
890
1,0%
Small
1.130
1,2%
Boutique
6.850
7,5%
Freelance
82.210
20,0%
27,1%
9,2%
31,7%
90,1%
125,7%
91.200
2014
Development of financials (€/x million)
30%
2007 - 2014
5,0%
4,1%
10,2%
8,2%
13,4%
Growth
# Firms
Development of employees (x000)
EBIT Margin
External/hired employees
Internal employees
+4,1%
15.231
14.838
14.289
15.187 22,4%
154,4
20,4%
18,7%
2.679
159,3
66,0
64,2
141,2
19,9%
3.034
162,5
3.405
3.031
54,1
60,5
+9,3%
Industry Size
Consultancy.nl
-11.610
-11.804
-12.200
-11.782
2009
2010
2011
2012
Professional Services Market Study 2014
87,0
93,8
96,5
95,1
2009
2010
2011
2012
%
CAGR
17
Market Size per Industry
Market Research Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 33.9%
3,0%
6,4%
15,0%
6.400
-2,7%
6.590
-8,3%
6.415
6.015
5.885
5.550
5.230
4.145
2007
2008
2009
2010
2011
Large
30
0,5%
Medium
165
3,0%
Small
170
3,1%
Boutique
615
Freelance
4.570
2012
2013
Costs
1.832
1.764
2%
EBIT
Industry Size
Consultancy.nl
-10,2%
82,3%
External/hired employees
22,0
14,6%
48,6%
Internal employees
-2,5%
22,4
22,2
20,4
13,8%
5,8
247
-5,6%
11,1%
1.669
285
0,0%
Development of employees (x000)
EBIT Margin
1.775
15,6%
14,0%
-25,0%
5.550
2014
Development of financials (€/x million)
Revenue
2007 - 2014
-5,7%
Per employee range
26,2%
Growth
# Firms
259
6,4
6,4
5,9
230
-1.517
-1.546
-1.516
-1.440
2009
2010
2011
2012
Professional Services Market Study 2014
-10,5%
16,2
16,0
15,8
14,5
2009
2010
2011
2012
%
CAGR
18
Market Size per Industry
Notary Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 16.1%
1,2%
1.300
1,0%
2,8%
9,9%
7,4%
1.445
-3,0%
1.500
1.485
-3,4%
1.455
2009
2010
2011
2012
2013
5
Medium
165
Small
305
21,7%
Boutique
260
18,5%
Freelance
670
-50,0%
0,4%
Costs
EBIT
-41,1%
11,7%
24,5%
44,4%
47,7%
35,4%
1.405
2014
Development of financials* (€/x million)
Revenue
Large
1.405
Per employee range
2008
2007 - 2014
1.315
1.210
2007
Growth
# Firms
Development of employees* (x000)
EBIT Margin
Indicative
Indicative
+0,7%
639
0.5%
655
626
20,5%
19,9%
647
6,6
6,6
6,7
6,8
2009
2010
2011
2012
20,2%
19,1%
128
Industry Size
Consultancy.nl
128
132
123
-512
-498
-523
-523
2009
2010
2011
2012
* Indicative, financials and employee development
estimated based on share within legal market
Professional Services Market Study 2014
%
CAGR
19
Market Size per Industry
Public Relations Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 36.4%
5,2%
2.565
6,5%
2.660
2.625
Per employee range
2.425
4,6%
2.305
6,2%
2.165
2.070
1.950
2008
2009
2010
2011
2012
2013
Costs
EBIT
EBIT Margin
Large
5
0,2%
Medium
60
2,3%
Small
75
2,8%
Boutique
270
10,2%
Freelance
2.250
0,0%
9,1%
15,4%
22,7%
84,6%
40,2%
2.660
2014
Development of financials* (€/x million)
Revenue
2007 - 2014
1,3%
2,3%
5,8%
2007
Growth
# Firms
Development of employees* (x000)
Indicative
Indicative
+4,1%
1%
Consultancy.nl
467 22,4%
2011
2012
105
93
-357
-363
-375
-362
2009
2010
2011
2012
* Indicative, financials and employee development
estimated based on share within respective market
4,9
19,9%
93
82
5,0
4,7
4,3
20,4%
18,7%
Industry Size
468
456
439
Professional Services Market Study 2014
2009
2010
%
CAGR
20
Market Size per Industry
Scientific Research Firms
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 56.3%
8,0%
14,1%
3.225
3.135
3.345
3.260
Per employee range
2.965
2.745
2.405
2.140
2007
2008
2009
2010
2011
2012
2013
Large
75
2,2%
Medium
225
6,7%
Small
175
5,2%
Boutique
390
11,7%
Freelance
2.480
Costs
EBIT
3.922
77,1%
Internal employees
+1,6%
5,4
-233
23,8%
74,1%
4.666
1%
-160
-2,8%
External/hired employees
37,3
-4,1%
32,4%
Development of employees (x000)
EBIT Margin
4.618
4.336
0,0%
3.345
2014
Development of financials (€/x million)
Revenue
2007 - 2014
2,6%
1,1%
2,9%
5,7%
12,4%
Growth
# Firms
-2,9% -132
38,4
38,5
39,1
5,1
4,3
4,9
+7,2%
-307
-5,4%
31,9
33,3
34,2
34,2
2009
2010
2011
2012
-6,6%
-4.082
Industry Size
Consultancy.nl
2009
-4.569
-4.750
-4.973
2010
2011
2012
Professional Services Market Study 2014
%
CAGR
21
Market Size per Industry
Other Professional Services
299,245
Development of enterprises by employee size
Growth ’07 – ‘14 = 89.1%
Growth
# Firms
2007 - 2014
9,5%
4,3%
13,5%
11,5%
16,8%
59.850
53.665
51.960
47.925
41.035
2007
2008
2009
2010
2011
2012
2013
Costs
EBIT
24.207
No data
available
0,5%
-6,4%
Medium
1.165
1,5%
-9,3%
Small
1.240
1,6%
-16,5%
Boutique
5.960
7,7%
Freelance
68.880
88,8%
114,6%
77.610
Indicative
External/hired employees
Internal employees Indicative
+6,1%
24.635
179,7
4,8%
158,7
2,3%
1.376
3,2%
Development of employees* (x000)
EBIT Margin
23.478
5,7%
365
2014
Development of financials* (€/x million)
Revenue
Large
70.870
Per employee range
3,3%
8,4%
67.925
77.610
1.125
55,2
573
187,0
189,7
57,8
58,3
51,7
+22,7%
26%
107,0
Industry Size
Consultancy.nl
2009
-22.831
-22.353
2010
2011
* Indicative only, ~20% of financials included based on
data from other providers in the market, mainly legal
124,5
129,2
131,3
2010
2011
2012
-24.062
2012
Professional Services Market Study 2014
2009
%
CAGR
22
Table of Contents
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
Consultancy.nl
Professional Services Market Study 2014
23
Key Findings
Professional Services market valued at €88 billion, employs ~818.000 people…
Employees per Segment
% Emp.
Industry
% Rev.
4.897
0.6%
Public Relations
0.5%
0,5
6.758
0.8%
Notary
0.7%
0,6
1.8%
Architecture
1.2%
2.5%
Market Research
1.9%
4.2%
Law
3.7%
4.8%
Scientific
Research
5.3%
7.0%
Advertising
7.2%
8.0%
IT Consultancy
9.0%
112.100
13.7%
Accounting
11.1%
114.200
14.0%
Engineering
14.0%
19.5%
Management
Consulting
17.3%
23.2%
Other Professional
Services
28.0%
15.000
20.400
817.744
34.080
professionals
39.100
57.000
65.244
159.303
189.662
Consultancy.nl
Professional Services Market Study 2014
Revenue per Segment
€/x billion
1,1
1,7
€88 billion
3,3
4,7
6,3
7,9
9,7
12,3
15,2
24,6
24
Key Findings
Market performance differs, as a result EBIT margins vary from –7% to 22%...
Accounting
Advertising
Costs per Employee
Revenue per Employee
Profit per Employee
€
€
€
-71.401
-95.842
Architecture
Engineering
IT Consultancy
-61.867
-95.718
86.771
Total Profit
2012 (x € million)
15.370
111.035
-110.737
121.601
-77.468
95.732
2012 - 2009
17,7%
866
8.333
107.487
Δ EBIT Margin
2012
1.723
15.193
70.200
EBIT Margin
13,7%
125
11.769
11,9%
1.344
10.864
-0,5
2,5
-2,5
10,9%
709
-1,4
8,9%
0,5
Law
18.264
622
19,1%
-0,9
Notary
Data only available at higher level, estimate for both segments
Management
Consulting
-73.959
95.335
21.376
3.510
22,4%
3,7
Public Relations
Market Research
-70.588
Scientific Research
-127.187
Other Professional
Services
-126.870
Consultancy.nl
81.814
119.335
129.891
11.225
-7.852
229
13,7%
-307
3.022
Professional Services Market Study 2014
-6,6%
573
-0,3
-2,5
2,3%
-3,4
* 2009 data not accurate, Δ EBIT margin represents 2010 – 2012
25
Key Findings
Also explained by different cost structures…
Accounting
Architecture
Change in Costs
Breakdown of Costs
(2009 – 2012)
(2012)
-2,1%
59%
-1,2%
928
3,5%
7.225
8%
7,6%
2.640
21%
4%
3%
6%
26%
45%
18%
2%
3%
5%
31%
4%
3%
4%
2,3%
52%
Notary
6%
12%
13%
56%
Transport
22%
58%
57%
10.931
Housing
9%
24%
-22,9%
Engineering
Law
Other Costs
(€/million)
5.463
IT Consultancy
Purchase Value of Sales
Total Costs
8.004
Advertising
Staff
523
8%
29%
9%
2%
2,3%
Breakdown of costs only available at higher level, estimate for both segments
Management
Consulting
Public Relations
Market Research
Scientific Research
Other Professional
Services
Consultancy.nl
11.782
1,5%
47%
362
26%
20%
3%
4%
1,5%
1.440
41%
-5,1%
4.973
47%
21,8%
24.062
5,4%*
36%
28%
Professional Services Market Study 2014
17%
21%
30%
28%
37%
* Growth represents 2010 – 2012 period
3%
3%
4%
1%
3%
1%
26
Key Findings
Average industry growth is strong, underpinned by a relatively high variation…
• Management Consulting is the largest industry within professional services, followed by Engineering
• Architecture is the fastest growing industry, with Market Research the only segment that is contracting
• EBIT margins vary from -7% to +22%, with the majority of industry’s performing between the 8% to 20% range
24%
Public Relations
Notary
Management Consulting
Law
Accounting
Average EBIT Margin (2012)
16%
Market Research
Architecture
Advertising
Engineering
Other Professional Services
8%
IT Consultancy
0%
Legend
EBIT Confidence Level
Scientific Research
Low
High
Size of Market
(x € billion in 2012)
0,5
€6bn
25
-8%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Industry Growth 2009 - 2014 (# Companies)
Consultancy.nl
Professional Services Market Study 2014
27
Key Findings
Industry growth driven mainly by freelancers flocking into the market…
• Nearly 86% of the professional services market consists of freelancers, with notary the only exception (<50%)
• The number of freelancers has over the past 5 years grown strongly, and even more than doubled in Architecture
95%
Legend
# of freelancers
13k
670
90%
Management Consulting
(x000; 2014)
82.210
Public Relations
IT Consultancy
% freelancers in industry
85%
Other Professional Services
Engineering
80%
Advertising
Market Research
Accounting
Architecture
75%
Scientific Research
Law
70%
‘Outliers’
Notary
50%
0%
-10%
0%
10%
20%
30%
40%
50%
60%
105%
Growth freelancers 2009 - 2014
Consultancy.nl
Professional Services Market Study 2014
28
Key Findings
Compared to UK, Netherlands has significantly higher % of freelancers…
Netherlands
Growth
Employee size (2014)
2009 - 2014
Other
United Kingdom
% Firms
Industry
% Firms
Freelancers + Boutique
Employee size (2014)
Freelancers + Boutique
Other
6,3%
93,7%
9.9%
Accounting
7.1%
79,5%
20,5%
4,5%
95,5%
9.7%
Advertising
3.4%
82,4%
17,6%
6,5%
93,5%
2.1%
Architecture
2.5%
81,9%
18,1%
17,4%
6,6%
93,4%
10.0%
Engineering
12.3%
88,8%
11,2%
16,8%
7,4%
92,6%
4.8%
IT Consultancy
14.7%
92,7%
7,3%
11,7%
88,3%
2.7%
Law
20,8%
16,4%
21,4%
29,6%
5.7%
52,3%
33,8%
66,2%
0.5%
Notary
97,7%
30.5%
Management
Consulting
25.5%
17,7%
6,6%
93,4%
1.9%
Public Relations
0.6%
15,4%
5,3%
94,7%
0.9%
Market Research
0.7%
1.1%
Scientific Research
0.8%
25.9%
Other Professional
Services
26.8%
299.245
Total
25,9%
11,2%
Consultancy.nl
14,2%
3,6%
85,8%
96,4%
26,2%
16,2%
32,4%
30,0%
18,8%
12,5%
7,1%
Data only available at higher level, estimate for both segments
2,3%
9,9%
73,8%
Growth
2009 - 2014
93,5%
74,9%
81,6%
73,4%
85,4%
6,5%
25,1%
18,4%
26,6%
14,6%
25,2%
0,5%
11,5%
11,4%
13,7%
547.145
Professional Services Market Study 2014
29
Table of Contents
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
Consultancy.nl
Professional Services Market Study 2014
30
Appendix
Contact and Authors
Consultancy.nl
Herikerbergweg 284 (7th floor)
Dalí gebouw, Arena Boulevard
1101 CT Amsterdam, The Netherlands
Tel: +31 (0)20 696 51 48
Email: [email protected]
Internet: www.consultancy.nl
Authors
Larry Zeenny
Director of Consultancy.nl & Consultancy.uk
[email protected]
Stephan Kersten
Research Analyst at Consultancy.nl
[email protected]
This document has been prepared with the utmost care yet the authors make no representation or warranty, express or implied, that the information is accurate or complete. Information, analyses and conclusions contained in the report
are based (unless sourced otherwise) on the judgments of Consultancy.nl, and should not be construed as definitive results. Consultancy.nl does not accept any responsibility or liability with respect to this document. The information is
copyright Consultancy.nl, and may not be published, copied or duplicated, in whole or in part, without the written permission of the authors.
Consultancy.nl
Professional Services Market Study 2014
31
Appendix
Development of Total Dutch Enterprises
Sector
Development of Enterprises per Industry
Number of companies per sector
1.227.795
1.387.995
1.428.005
12%
12%
9 ‘small’ sectors bundled in Slide 6
88%
88%
11 sectors presented in Slide 6
% Growth
% Growth
2007 - 2014
2013 - 2014
12%
987.365
13%
87%
88%
9 ‘small’ sectors bundled in Slide 5
3.605
(0,37%)
0,04%
3.100
(0,25%)
0,09%
0,03%
0,06%
3.355
(0,24%)
0,03%
0,06%
3.495
(0,24%)
Other n.e.c.
0,03%
Mining and Quarrying
0,06%
Public Administration & Defense
0,06%
2,7%
5,7%
-4,7%
-3,0%
0,06%
Electricity, Gas, Steam &
Air Conditioning Supply
0,10%
0,09%
0,09%
Water Supply
166.780
(12,0%)
173.020
(12,1%)
2,4%
2,3%
Real Estate Activities
23,8%
2,4%
2,4%
Transport and Storage
21,7%
2,2%
3,5%
3,5%
Accommodation & Food Services
15,5%
2,3%
3,7%
3,9%
Education
2013
2014
145.135
(11,8%)
2,5%
52,1%
-25,5%
12,4%
4,4%
0,1%
2,6%
3,8%
2,6%
3,0%
2007
2010
Consultancy.nl
0,0%
0,06%
2,8%
4,4%
-8,0%
0,06%
0,18%
123.320
(12,5%)
130,0%
Professional Services Market Study 2014
119,9%
8,4%
32
Appendix
Development of Professional Services
Development of Professional Services firms (1999 – 2014)
300.000
40%
199.935
200.000
100.000
221.620
240.080
257.790
278.270
285.670 299.245
6 segments bundled in Slide 7
171.665
78.540
81.760
82.450
88.915
91.080
1999
2000
2001
2002
2003
111.155 113.630
123.080
6 sectors presented in Slide 7
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
30.000
10,0%
10,1%
25.000
0,6%
9,9%
20.000
+47%
*
10,3%
0,7%
1,1%
15.000
10.000
5.000
13,0%
1,0%
1,6%
12,7%
1,0%
1,6%
2,2%
2,1%
12,3%
0,9%
1,6%
11,7%
0,7%
1,6%
11,6%
0,7%
1,6%
9,7%
0,5%
1,4%
1,8%
1,9%
2,0%
1,8%
9,9%
0,5%
1,3%
1,9%
9,8%
0,5%
1,2%
2,6%
3,2%
3,2%
3,2%
3,1%
3,1%
2,4%
2,4%
2,4%
2,4%
2,4%
2,4%
2,1%
2,1%
2,0%
2,5%
2,4%
2,3%
1,9%
1,8%
1,5%
1,6%
1,5%
1999
2000
2001
2002
2003
2004
2005
2006
Consultancy.nl
0,6%
0,7%
1,0%
1,0%
0,9%
1,0%
1,2%
0,5%
0,9%
1,2%
1,2%
9,2%
0,5%
0,5%
Notary
0,9%
0,9%
Public Relations
1,1%
1,1%
Scientific Research
2,6%
2,3%
2,1%
1,9%
Market Research
2,1%
Architecture
Law
2,7%
1,2%
2,7%
2,6%
2,4%
1,9%
2,0%
9,5%
1,2%
1,2%
1,9%
2,5%
0
10,0%
0,6%
9,6%
1,8%
1,9%
1,9%
2,2%
1,7%
2,8%
2,7%
2,7%
2,7%
2,8%
2,6%
2,8%
2,7%
2007
2008
2009
2010
2011
2012
2013
2014
Professional Services Market Study 2014
* See Slide 35 in the Appendix for details
33
Appendix
Intervals for Employee Size
Employees per Segment
Ratio Analysis
% Emp.
Industry
4.897
0.6%
Public Relations
6.758
0.8%
Notary
1.8%
Architecture
2.5%
Market Research
4.1%
Law
4.8%
Scientific
Research
6.9%
Advertising
57.000
7.9%
IT Consultancy
45.010
112.100
13.6%
Accounting
114.200
13.9%
Engineering
20.0%
Management
Consulting
23.1%
Other Professional
Services
817.744
professionals
15.000
Based on Ratio
Analysis approach,
however a different
method would lead
to slightly lower or
higher estimate
20.400
34.080
39.100
57.000
65.244
159.303
189.662
Consultancy.nl
Mean
Interval Estimate
Employee Estimate per Method
5.620
4.897
9.640
6.758
15.000
16.623
17.475
20.400
28.438
34.080
21.475
39.100
57.378
65.244
74.738
112.100
86.898
114.200
139.015
167.150
Professional Services Market Study 2014
164.200
189.662
34
Appendix
Change in Definition: 2007
• In 2007 the CBS modified the way with which it registers enterprises in the Netherlands
• Before 2007 the CBS only counted companies that were considered ‘economically active’: companies in which at
least one person worked 15 hours or more per week. From 2007 onwards the so-called Hour Criterion
(‘Urenciterium’) was discarded, leading to a large increase in the number of ‘in-scope’ enterprises (+32%)
• The impact of the change had different implications per industry, overall it can be concluded that the definition
alteration had a higher than average impact on the professional services industry (+40% vs. +32%)
Development of total Dutch enterprises (2004– 2009)
1.200.000
1.158.410
+32%
1.088.375
987.365
1.000.000
800.000
705.180
719.405
2004
2005
746.365
See Slide 5 for details on the
development of the total
number of enterprises. See
Slide 7 for an overview of the
impact on the professional
services industry.
600.000
400.000
200.000
0
Consultancy.nl
2006
2007
2008
Professional Services Market Study 2014
2009
35
Appendix
Data Quality? – Example Management Consulting
• The accuracy of the research is to an extent dependent on data from CBS and KvK. An analysis from Consultancy.nl
on ~1,000 records within Management Consulting reveals that the data is not entirely complete and/or accurate
Data
Completeness
(50+ FTE firms)
CBS
450
+9%
489
Consultancy.nl
According to the CBS, there are 450 management
consulting firm with more than 20 FTE’s. Data from
Consultancy.nl , reconciled with the CBS data, shows
that the actual number of firms is nearly 10% higher
998
Incorrectly assigned;
--> Not PS
12%
Incorrectly assigned;
--> Other PS
39%
Data Quality
Grey Area
Correctly Assigned
49%
Firms registered in Management Consulting, however
in practice they do not fall within the segment and
even should not be classified as professional services.
Examples include hotels, fitness companies, catering,
child care, retailers, newspaper and more…
Firms registered in Management Consulting, however
in practice they would be better suited in other
industries within professional services. In some cases
most relevant category is not entirely clear due to
multi-disciplinary business model and services
Enterprises Assessed
Consultancy.nl
Professional Services Market Study 2014
36
Professional Services Market Study 2014
- Market assessment of the Dutch professional services industry -

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