Management consultancy fee income up by 5 per cent

14 May 2012

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14 May 2012 | Kamalpreet Badasha

Fees paid to management consultants in the UK increased by just under 5 per cent last year, according to the Management Consultancies Association (MCA).

The MCA UK Consulting Industry Statistics 2012 Report indicated the UK economy is moving back to pre-crisis fee income levels, with the total number of fee earning consultants increased by 10 per cent in 2011. This compares with a 2 per cent reduction in fee earners in 2010. The MCA estimates the sector is now worth around £9 billion.

This growth has been fuelled by a 14 per cent increase in fee income from the private sector. The current ratio of fee income for consulting is 80 per cent private to 20 per cent public.

Alan Leaman, chief executive of the MCA, said in a statement: “While most private sector clients are not confident enough to undertake major projects, they are often developing their capacities, processes and systems so that they are ready for an upturn when it materialises.”

The MCA’s report, which will be published later this week, also found the manufacturing sector generated 16 per cent of the total private sector fee income for consulting making it the fastest growing industry. The Association believes this as an early indication of economic recovery. Its analysis suggested manufacturers have been taking on consultants to exploit economies of scale and improve supply chains, boosting productivity and efficiency.

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