Professional Services Market Study 2014
- Market assessment of the Dutch professional services industry -
Copyright © 2014 Consultancy.nl. All rights reserved.
Table of Contents
Professional Services Market Study 2014
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
2
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Introduction
Research Question
– Key Question –
What is the size of the Professional Services industry in the Netherlands?
Definition of Professional Services
Geographic Scope
•
Publicly available information:
Government statistics, annual
reports of firms
•
Analyst firms, economic
institutions, research
departments of banks
•
Databases: Statline, Kamer van
Koophandel, Company.info, ONS
Data Scope
Market Scope
1 – 10 FTE
10 – 50 FTE
50 – 100 FTE
100+ FTE
Companies of
all sizes in scope
Market Definition
Definition of professional
services is for a large part
in line with the definition
applied by the CBS, with
two differences
Accounting
Advertising
Architecture
IT Consultancy*
Management
Consulting
Scientific
Research
Notary
Public Relations
Market
Research
Engineering
Legal
Other
Professional
Services*
Companies located
in The Netherlands
* 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.
Table of Contents
Professional Services Market Study 2014
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
4
Consultancy.nl
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)
987.365
5,4%
2008 746.365 400.000 2009 1.158.410 2006 2005 719.405 1.000.000 600.000 200.000 2002 1.365.960 705.180 1.296.105 693.430 1.400.000 2001 688.655 01,2%
+32%
671.045+281%
1.428.005+113%
2014 2013 1.387.995 2012 2010 1.227.795 1.088.375 2007 2003 689.180 2004 2000 679.565 1999 1.600.000 1.200.000 800.000 2011 10% 5% 0% -5% 2,9% 1,6% 5,4% 5,6% 6,0% 6,4% 10,2% 3,7% 2,0% 2,3% -0,6% 0,7% 1,3% 15% 1,3%Year over year growth of total number Dutch enterprises
*
Other firms Professional Services+ 756.960
enterprises
= +113%
Change of definitionDevelopment of Enterprises per Industry
Number of companies per sector
Professional Services Industry
Development of Dutch Enterprises – Industry
Professional Services Market Study 2014
1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 1.400.000+13,0%
987.365 1.227.795+24,4%
+2,9%
2014 1.428.005 21,0% 14,9% 9,8% 7,8% 6,2% 5,9% 5,5% 4,9% 4,1% 4,0% 3,5% 2013 1.387.995 20,6% 15,4% 10,0% 7,5% 5,8% 6,1% 5,6% 5,1% 4,0% 4,0% 3,5% 2010 19,6% 16,8% 10,9% 6,0% 6,2% 5,4% 5,7% 5,7% 3,7% 4,3% 3,6% 2007 17,4% 19,5% 10,2% 4,4% 6,4% 4,8% 5,6% 6,8% 3,7% 4,9% 3,4%6
Consultancy.nl
Professional Services 9 different sectors(see Slide 32 for details)
77,1%
Other Service Activities
Wholesale & Retail Trade Construction Human Health & Social Work
Manufacturing Administrative & Support Services
Agriculture, Forestry & Fishing Information & Communication
Arts, Entertainment & Recreation Financial & Insurance Activities
Sector
16,9% 46,6% 5,8% 60,9% 42,1% 40,1% 155,6% 39,6% 10,5% 74,3% -1,0% 1,0% 1,6% -0,1% 5,4% 0,9% 9,2% 7,3% 0,8% -0,2% 4,8%% Growth
2007 - 2014% Growth
2013 - 2014Professional services is the largest
sector in the Netherlands, based
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)
350.000 300.000 123.080 221.620 Management Consulting 171.665 240.080 2006 200.000 2005 250.000 150.000 100.000 50.000 0 2010 2000 2009 81.760 2008 1999 2007 78.540
+8%
+6%
+40%Other Professional Services Engineering Accounting Advertising IT Consultancy 2014 299.245 2013 285.670 2012 278.270 2011 257.790 199.935 2003 2002 91.080 88.915 111.155 113.630 2004 2001 82.450 25% 20% 15% 0
9,3
21,0% 20,6% 20,4% 19,9% 19,6% 19,1% 18,4% 17,4% 16,5% 15,8% 15,8% 13,2% 12,8% 12,0% 12,0% 11,7%Professional Services as % of total NL enterprises
+ 220.705
enterprises
= +281%
10% 2% 2% >Medium Boutique SmallSize
% Share
*
Rounded CAGR %- Industrial design consultancy - Translation and interpretation - Other professional services n.e.c.
6 categories
(see Slide 33 for details)
Professional Services Industry
Industry Breakdown 2014
Professional Services Market Study 2014
Industry
Accounting
Advertising
Architecture
IT Consultancy
Management
Consulting
Scientific
Research
Other Professional
Services
# Firms
10%
29.480
10%
29.090
10%
30.070
3%
8.185
2%
5.550
1%
2.660
1%
3.345
26%
77.610
Growth
(2007 – 2014)Breakdown by employee size
(2014)
Notary
1.405
1%
299.245
88,8% 90,1% 47,7% 83,2% 82,3% 84,6% Freelance 70,4% 74,1% 82,6% 78,6% 83,6% 79,2% 10,2% Boutique 14,5% 10,8% 14,9% 11,9% 11,1% 7,5% 17,9% 9,5% 18,5% 7,7% 11,7% Medium 1,5% 6,7% 2,3% 11,7% 3,0% 4,1% 2,7% 1,0% 3,5% 2,9% 1,5% 2,3% 0,77% Large 0,47% 2,24% 0,19% 0,36% 0,54% 0,13% 0,61% 0,58% 0,24% 0,17% 0,32%8
Rounded
5,2% 2,8% 21,7% 3,1% 1,2% 7,0% 3,1% 3,2% 3,6% 2,7% 3,6% Small 1,6%Consultancy.nl
Law*
Public Relations
Market Research
Engineering
6.325
14.325
91.200
2%
5%
30%
89,1% 56,3% 36,4% 16,1% 33,9% 109,8% 107,8% 45,7% 83,1% 43,9% 70,7% 35,7%* Looks only at Law firms, other Legal service providers included in the category ‘Other’ 2 - 5 FTE 5 - 10 FTE 10 – 50 FTE 50+ FTE
Professional Services Industry
Employee and Concentration Analysis 2007 vs. 2014
299.245
2007
171.665
2014
+74%
Development by employee size
(2007 – 2014)
Development of concentration
(Medium + Large enterprises as a share of total)
135
171.665
Large
3.480
Boutique
Small
Medium
2007
299.245
- 10
- 245
124.220
2014
Freelance
+ 127,580
enterprises
+ 97,4% + 2,7%~97% of the growth in enterprises
can be attributed to freelancers
9
- 0,19% + 0,11% - 0,01% 2014 4,9% 4,7% 2007 -39,8% -34,4% 1,8% 2014 2014 -21,7% -20,6% -26,6% -27,9% 2,0% 2014 9,0% 2,4% 2014 4,3% 2014 2007 3,6% 2014 3,5% 2007 -51,7% 2,6% 3,1% 2014 -49,5%2,26%
2,9% 2014 -66,3% 2007 2007 7,5% 2014 2007 8,7% 2007 4,1% 2,6% -29,0% 2007 1,1% 2007 3,5% 4,8% 2014 5,8% 2014 2007 -27,2% 11,4% 24,0% 2007 1,7% 12,1% 2007 -37,3%Concentration ranges from 1.1% to 12.1% depending on industry
Medium Large Weighted Avg. 2014 Other Management Consulting Accounting Advertising Architecture Engineering IT
Consultancy Law Market Research Notary Public Relations Scientific Research
2 - 5 FTE 5 - 10 FTE 10 – 50 FTE 50+ FTE 1 FTE
Table of Contents
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
31
10
Professional Services Market Study 2014
2013 2,2% 1,2% 4,2% 5,4% 5,0% 2014 8,3% 29.480 28.855 2012 28.505 2011 27.365 5,2% 25.975 2009 24.745 2008 23.525 2007 21.730 2010
Market Size per Industry
Accounting Firms
Industry Size
299,245
10%
Development of enterprises by employee size
P e r e m pl oye e range Large Medium Small Boutique 47,0% 8,9% -5,3% 2,3% -20,8%
Development of financials
(€/x million)
Growth ’07 – ‘14 = 35,7%
11
Freelance # Firms Growth 2007 - 2014 CAGR 29.480 9.727 -8.004 17,7% 2012 1.723 18,2% 9.989 -8.173 1.815 2009 18,5% 9.743 -7.936 1.807 2010 2011 17,6% -8.127 9.860 1.733 CostsRevenue EBIT EBIT Margin
Development of employees
(x000)
2009 27,2 -2,4% 114,2 115,5 89,0 2011 27,5 84,9 27,2 112,1 87,0 2010 116,5 -1,0% 2012 87,0 28,5External/hired employees Internal employees
Professional Services Market Study 2014
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2,3% 0,3% 1.075 14,5% 675 3,6% 23.360 95 4.275 79,2%23.995 2008 22.210 2007 20.215 8,0% 7,0% 4,3% 4,9% 0,3% 3,2% 2014 29.090 2013 9,9% 28.185 2012 28.100 2011 26.800 2010 25.685 2009
Market Size per Industry
Advertising Agencies
Industry Size
299,245
10%
Development of enterprises by employee size
P e r e m pl oye e range Large Medium Small Boutique 57,0% 4,5% -9,1% -5,3% -9,1%
Development of financials
(€/x million)
12
Freelance # Firms Growth 2007 - 2014 CAGR % 29.090 866 875 695 693 2012 -5.463 6.329 13,7% 2011 -5.512 6.387 13,7% 2010 -5.951 6.646 10,5% 2009 -5.530 6.223 11,1%EBIT EBIT Margin Costs Revenue
Development of employees
(x000)
-0,7% 31,8 2010 57,9 30,6 2009 54,2 +1,7% 2011 23,6 30,4 26,6 55,9 57,0 25,1 2012 30,8 26,1External/hired employees Internal employees
Professional Services Market Study 2014
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0,2% 450 11,9% 795 2,7% 3.470 24.325 1,5% 83,6% 50Growth ’07 – ‘14 = 43.9%
1,1% 17,5% 6,0% 10,2% 20,6% 2,6% 6,7% 3.780 4.560 2011 3.685 5.025 2010 2009 2007 3.455 2014 6.325 2013 2008 6.255 2012 5.325
Market Size per Industry
Architecture Firms
Development of enterprises by employee size
P e r e m pl oye e range Large Medium Small Boutique 140,1% -57,1% 21,2% -26,2% -35,8%
Development of financials
(€/x million)
13
Freelance # Firms Growth 2007 - 2014 CAGR 6.325 -928 125 125 202 194 1.221 2012 1.053 11,9% 2009 2010 2011 -1.097 -1.145 1.339 1.406 14,5% 10,2% 14,4% -1.204Costs EBIT EBIT Margin Revenue
Development of employees
(x000)
4,7 14,2 5,0 2009 18,9 2010 17,5 12,5 4,2 16,2 12,0 15,0 2011 4,7 2012 -7,4% -27,5% 10,3 External/hired employees Internal employeesProfessional Services Market Study 2014
Consultancy.nl
4.970 78,6% 945 14,9% 225 3,6% 170 2,7% 15 0,2%Growth ’07 – ‘14 = 83.1%
Industry Size299,245
2%
Industry Size
299,245
10%
Market Size per Industry
Engineering Firms
Growth ’07 – ‘14 = 45.7%
Development of enterprises by employee size
P e r e m pl oye e range Large Medium Small Boutique
Development of financials
(€/x million)
Freelance # Firms Growth 2007 - 2014 30.070 2012 1.345 -10.931 12.275 11,0% 2011 1.507 -11.030 12.537 12,0% 2010 1.495 -10.865 12.360 12,1% 2009 1.486 -10.562 12.047 12,3% EBIT Margin EBIT Costs Revenue
Development of employees
(x000)
114.2 -1.7% -1.2% 2012 83,4 30,8 2011 116.2 85,5 30,7 2010 117.5 87,5 30,0 2009 118.4 84,8 33,6 Internal employees External/hired employees 0,0% 3,3% 4,8% 4,0% 11,3% 13,5% 2,4% 30.070 2013 29.360 2012 29.350 2011 28.415 2014 27.120 2009 26.070 2008 23.430 2007 20.635 2010 59,5% 4,8% -3,1% 5,5% 2,9% 24.830 82,6% 3.250 10,8% 950 3,2% 865 2,9% 175 0,6%14
CAGR %Professional Services Market Study 2014
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Industry Size
299,245
5%
Market Size per Industry
IT Consultancies
Development of enterprises by employee size
Growth ’07 – ‘14 = 107.8%
15
CAGRProfessional Services Market Study 2014
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P e r e m pl oye e range Large Medium Small BoutiqueDevelopment of financials*
(€/x million)
Freelance # Firms 14.325 709 617 722 622 2012 -7.225 7.934 8,9% 2011 -7.254 7.872 7,8% 2010 -6.951 7.674 9,4% 2009 -6.712 7.334 8,5% EBIT Margin EBIT Costs Revenue
Development of employees*
(x000)
0,4% -0,6% 3,7% 3,6% 8,1% 32,4% 35,4% 2014 14.325 12.355 2008 9.335 2007 6.895 14.265 2013 2012 14.350 2011 13.840 2010 13.355 2009 134,5% 28,4% 23,6% 47,1% 83,3% 11.915 83,2% 1.355 9,5% 445 3,1% 500 3,5% 110 0,8% Growth 2007 - 2014 Indicative* Indicative, financials and employee development
65,2 2011 63,8 2010 62,8 2009 61,8 +1,8% 2012 Indicative
Industry Size
299,245
3%
Market Size per Industry
Law Firms
Development of enterprises by employee size
16
CAGR%
Growth ’07 – ‘14 = 70.7%
Professional Services Market Study 2014
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P e r e m pl oye e range Large Medium Small Boutique Freelance # Firms 8.185 622 668 647 644 2012 -2.640 3.263 19,1% 2011 -2.638 3.305 20,2% 2010 -2.511 3.158 20,5% 2009 -2.580 3.224 20,0% EBIT Margin EBIT Costs RevenueDevelopment of employees*
(x000)
6.605 9,6% 5,5% 2,6% 6,3% 7,8% 2007 13,1% 11,2% 2014 8.185 5.330 2013 7.760 7.120 2012 7.565 2009 2010 2011 5.840 4.795 2008 105,2% 36,9% 2,7% 6,3% 11,1% 5.765 70,4% 1.465 17,9% 570 7,0% 335 4,1% 50 0,6% Growth 2007 - 2014 Indicative +0,7% 2012 34,1 2011 33,8 2010 33,4 2009 33,4Development of financials*
(€/x million)
Indicative
* Indicative, financials and employee development estimated based on share within legal market
Industry Size
299,245
30%
Market Size per Industry
Management Consulting Firms
Development of enterprises by employee size
17
CAGRGrowth ’07 – ‘14 = 109.8%
Professional Services Market Study 2014
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P e r e m pl oye e range Large Medium Small BoutiqueDevelopment of financials
(€/x million)
Freelance # Firms 91.200 2.679 -11.610 14.289 18,7% 2012 3.405 -11.782 15.187 22,4% 2011 3.031 -12.200 15.231 19,9% 2010 3.034 -11.804 14.838 20,4% 2009 EBIT Costs
Revenue EBIT Margin
Development of employees
(x000)
2011 154,4 162,5 96,5 2012 93,8 95,1 66,0 64,2 2010 159,3 60,5 2009 141,2 +9,3% +4,1% 87,0 54,1External/hired employees Internal employees
2012 23,1% 91.200 86.895 2011 4,1% 83.445 2014 15,4% 13,4% 5,0% 2013 10,2% 8,2% 2007 43.460 53.490 2009 60.635 2010 2008 70.000 75.740 27,1% 125,7% 9,2% 20,0% 31,7% 6.850 82.210 1,0% 7,5% 1.130 890 90,1% 0,1% 1,2% 120 Growth 2007 - 2014
Industry Size
299,245
2%
Market Size per Industry
Market Research Firms
Development of enterprises by employee size
18
CAGR%
Growth ’07 – ‘14 = 33.9%
Professional Services Market Study 2014
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P e r e m pl oye e range Large Medium Small BoutiqueDevelopment of financials
(€/x million)
Freelance # Firms 5.550 230 259 285 247 -1.440 15,6% -1.546 1.832 2009 -1.516 2012 1.764 14,0% -1.517 14,6% 1.669 2011 13,8% 1.775 2010
EBIT EBIT Margin Costs Revenue
Development of employees
(x000)
2012 2010 2013 2007 2009 6.590 6.415 6.015 5.230 -2,7% 5.885 2014 3,0% 15,0% 26,2% 5.550 6.400 -5,7% 6,4% 2011 2008 4.145 -8,3% -5,6% 0,0% -25,0% 48,6% -10,2% 0,5% 4.570 82,3% 615 11,1% 170 3,1% 165 3,0% 30 Growth 2007 - 2014 6,4 2009 -10,5% 22,2 22,0 16,0 2011 6,4 14,5 5,9 20,4 15,8 2010 22,4 -2,5% 2012 16,2 5,8Industry Size
299,245
0.5%
Market Size per Industry
Notary Firms
19
CAGRGrowth ’07 – ‘14 = 16.1%
Professional Services Market Study 2014
Consultancy.nl
P e r e m pl oye e range Large Medium Small Boutique Freelance # Firms 1.405 647 655 626 639 -523 -523 -498 -512 123 132 128 128 2012 19,1% 2011 20,2% 2010 20,5% 2009 19,9% EBIT Margin EBIT Costs Revenue 2007 1.300 2008 1.485 2009 1.445 1.315 2010 2012 2013 2014 1.455 1.405 1,0% 2,8% 7,4% 1.500 -3,0% 2011 1,2% 9,9% -3,4% 1.210 -50,0% 44,4% 24,5% -41,1% 35,4% 47,7% 0,4% 305 165 21,7% 18,5% 670 11,7% 5 260 Growth 2007 - 2014 IndicativeDevelopment of enterprises by employee size
2009 6,6 2010 6,8 6,7 2012 2011 +0,7% 6,6 Indicative
Development of employees*
(x000)
Development of financials*
(€/x million)
Industry Size
299,245
1%
Market Size per Industry
Public Relations Firms
Development of enterprises by employee size
20
CAGR%
Growth ’07 – ‘14 = 36.4%
Professional Services Market Study 2014
Consultancy.nl
P e r e m pl oye e range Large Medium Small Boutique Freelance # Firms 2.660 2013 2.660 2014 6,2% 4,6% 6,5% 5,2% 5,8% 2,3% 1,3% 2.425 2010 2.305 2009 2011 2.165 2008 2.070 2007 2.565 2012 2.625 1.950 40,2% 22,7% 15,4% 9,1% 0,0% 2.250 84,6% 270 10,2% 75 2,8% 60 2,3% 5 0,2% Growth 2007 - 2014 Indicative +4,1% 2012 4,9 2011 5,0 2010 4,7 2009 4,3 Indicative 467 468 456 439 -362 -375 -363 -357 105 93 93 2012 22,4% 2011 19,9% 2010 20,4% 2009 82 18,7% EBIT Margin EBIT Costs RevenueDevelopment of employees*
(x000)
Development of financials*
(€/x million)
* Indicative, financials and employee development estimated based on share within respective market
Industry Size
299,245
1%
Market Size per Industry
Scientific Research Firms
Development of enterprises by employee size
21
CAGRGrowth ’07 – ‘14 = 56.3%
Professional Services Market Study 2014
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P e r e m pl oye e range Large Medium Small BoutiqueDevelopment of financials
(€/x million)
Freelance # Firms 3.345 -307 -132 -233 -160 -4.569 -4.082 3.922 -2,9% 4.618 4.666 -6,6% 2012 -4,1% 2009 -4.973 2011 -4.750 2010 4.336 -5,4%
Revenue Costs EBIT EBIT Margin
Development of employees
(x000)
38,4 4,3 4,9 38,5 2010 39,1 +1,6% 2012 +7,2% 34,2 34,2 2011 2009 37,3 33,3 5,1 31,9 5,4 Internal employees External/hired employees 3.345 5,7% 2,6% 2.965 2.405 3.135 12,4% 1,1% 2011 8,0% 3.225 3.260 2008 2.140 2014 2,9% 14,1% 2013 2012 2010 2.745 2007 2009 23,8% 32,4% -2,8% 77,1% 0,0% 6,7% 5,2% 390 11,7% 2,2% 175 74,1% 2.480 225 75 Growth 2007 - 2014Industry Size
299,245
26%
Market Size per Industry
Other Professional Services
Development of enterprises by employee size
22
CAGR%
Growth ’07 – ‘14 = 89.1%
Professional Services Market Study 2014
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P e r e m pl oye e range Large Medium Small BoutiqueDevelopment of financials*
(€/x million)
Freelance # Firms 77.610 573 2012 -24.062 24.635 2,3% 2011 1.125 -22.353 23.478 4,8% 2010 1.376 -22.831 24.207 5,7% 2009 EBIT Margin EBIT Costs Revenue
Development of employees*
(x000)
70.870 2013 77.610 2014 16,8% 8,4% 3,3% 11,5% 13,5% 4,3% 9,5% 59.850 2010 53.665 2011 2009 51.960 2008 47.925 2007 41.035 67.925 2012 114,6% 3,2% -16,5% -9,3% -6,4% 68.880 88,8% 5.960 7,7% 1.240 1,6% 1.165 1,5% 365 0,5% Growth 2007 - 2014 189,7 +22,7% +6,1% 2012 131,3 58,3 2011 187,0 129,2 57,8 2010 179,7 124,5 55,2 2009 158,7 107,0 51,7 Internal employees External/hired employees No data available* Indicative only, ~20% of financials included based on data from other providers in the market, mainly legal
Table of Contents
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Key Findings
Professional Services market valued at €88 billion, employs ~818.000 people…
24
Professional Services Market Study 2014
Consultancy.nl
Public Relations
Notary
Architecture
Law
Advertising
Management
Consulting
Other Professional
Services
Scientific
Research
Engineering
IT Consultancy
Market Research
Industry % Rev. % Emp.28.0%
24,6
17.3%
15,2
14.0%
12,3
11.1%
9,7
9.0%
7,9
7.2%
6,3
5.3%
4,7
3.7%
3,3
1.9%
1,7
1.2%
1,1
0.7%
0,6
0.5%
0,5
Revenue per Segment
€/x billion
€88 billion
23.2%
189.662
19.5%
159.303
14.0%
114.200
13.7%
112.100
8.0%
65.244
7.0%
57.000
4.8%
39.100
4.2%
34.080
2.5%
20.400
1.8%
15.000
0.8%
6.758
0.6%
4.897
817.744
professionals
Accounting
Employees per SegmentKey Findings
Market performance differs, as a result EBIT margins vary from –7% to 22%...
3.510 22,4% 95.335 -73.959 8.333 10.864 15.370 15.193 11.769
Revenue per Employee
€
Costs per Employee
€ Δ EBIT Margin 2012 - 2009 EBIT Margin 2012 Total Profit 2012 (x € million)
Profit per Employee
€
Accounting
Advertising
Architecture
IT Consultancy
Management
Consulting
Scientific Research
Law
Other Professional
Services
Market Research
Engineering
Notary
Public Relations
95.732 -77.468 119.335 129.891 81.814 -127.187 -70.588 -126.870 -95.718 -71.401 -61.867 -110.737 -95.842 86.771 121.601 107.487 70.200 111.035 3.022 -7.852 11.225 21.376 18.264 866 1.344 1.723 125 709 622 573 -307 229 19,1% 8,9% 17,7% 13,7% 10,9% 11,9% -3,4 -0,3 -2,5 0,5 -1,4 -2,5 2,5 -0,5 2,3% 13,7% -6,6% -0,9 3,7Key Findings
Also explained by different cost structures…
26
Professional Services Market Study 2014
Consultancy.nl
Accounting
Advertising
Architecture
IT Consultancy
Management
Consulting
Scientific Research
Law
Other Professional
Services
Market Research
Engineering
Total Costs (€/million) Breakdown of Costs (2012) 58% 12% 45% 2% 59% 9% 22% 6% 4% 31% 18% 3% 4% 8% 56% 26% 5% 4% 57% 3% 13% 21% 6% 3% 24%Staff Purchase Value of Sales Other Costs Housing Transport
5,4%* 21,8% -5,1% 1,5% 1,5% 2,3% 2,3% 7,6% 3,5% -22,9% -1,2% -2,1% Change in Costs (2009 – 2012) 24.062 4.973 1.440 362 11.782 523 2.640 7.225 10.931 928 5.463 8.004
* Growth represents 2010 – 2012 period
Notary
Public Relations
28% 30% 37% 3% 1% 47% 21% 28% 4% 1% 41% 36% 17% 3% 3% 52% 8% 29% 9% 2% 47% 26% 20% 3% 4%Law
A
ve
rag
e
E
B
IT
M
ar
gi
n
(2012)
24%
16%
8%
10%
0%
IT Consultancy
-8%
40%
Industry Growth 2009 - 2014 (# Companies)
70%
50%
30%
-10%
Scientific Research
Other Professional Services
Public Relations
0%
Notary
Market Research
Management Consulting
Engineering
Advertising
Architecture
Accounting
60%
20%
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
High Low
EBIT Confidence Level
Size of Market
(x € billion in 2012)
0,5 25
€6
bnLegend
-10%
IT Consultancy
105%
Engineering
Accounting
Architecture
Advertising
Scientific Research
%
f
ree
lanc
er
s
in
in
d
u
str
y
Public Relations
Notary
Market Research
Management Consulting
Law
95%
90%
85%
80%
75%
70%
50%
0%
Growth freelancers 2009 - 2014
50%
Other Professional Services
60%
40%
30%
20%
10%
0%
Key Findings
Industry growth driven mainly by freelancers flocking into the market…
28
Professional Services Market Study 2014
Consultancy.nl
•
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
Legend
13k
# of freelancers
(x000; 2014) 670 82.210‘Outliers’
Data only available at higher level, estimate for both segments
Key Findings
Compared to UK, Netherlands has significantly higher % of freelancers…
Industry % Firms
299.245
547.145
Employee size (2014) 11,2% 25,9% 15,4% 17,7% 9,9% 52,3% 29,6% 16,8% 17,4% 21,4% 16,4% 20,8% Growth2009 - 2014 % Firms Employee size (2014)
Growth 2009 - 2014
Total
United Kingdom
Netherlands
Accounting
Advertising
IT Consultancy
Management
Consulting
Scientific Research
Law
Other Professional
Services
Market Research
Engineering
Notary
Public Relations
Architecture
Freelancers + Boutique2.5%
14.7%
92,7%12.3%
88,8% 81,9%3.4%
82,4%7.1%
79,5%25.5%
0.7%
93,5% 81,6%0.6%
74,9%26.8%
85,4%0.8%
73,4% Other 7,3% 11,2% 18,1% 17,6% 20,5% 14,6% 26,6% 18,4% 25,1% 6,5% 11,4% 13,7% 11,5% 0,5% 25,2% 12,5% 18,8% 30,0% 32,4% 16,2% 7,1% 26,2%5.7%
73,8% 3,6% Other 14,2% 7,4% 5,3% 6,6% 2,3% 11,7% 4,5% 6,6% 6,5% 33,8% 6,3% Freelancers + Boutique25.9%
96,4%1.1%
85,8%0.9%
94,7%1.9%
93,4%30.5%
97,7%0.5%
66,2%2.7%
88,3%4.8%
92,6%10.0%
93,4%2.1%
93,5%9.7%
95,5%9.9%
93,7%Table of Contents
30
Professional Services Market Study 2014
Consultancy.nl
Introduction
3
Professional Services Industry
5
Market Size per Industry
11
Key Findings
24
Appendix
Contact and Authors
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
Herikerbergweg 284 (7th floor)
Dalí gebouw, Arena Boulevard
1101 CT Amsterdam, The Netherlands
Tel: +31 (0)20 696 51 48
Email:
info@consultancy.nl
Internet:
www.consultancy.nl
Authors
Larry Zeenny
Director of Consultancy.nl & Consultancy.uk
larry@consultancy.nl
Stephan Kersten
Research Analyst at Consultancy.nl
Appendix
Development of Total Dutch Enterprises
Professional Services Market Study 2014
32
Consultancy.nl
Education Water Supply
Accommodation & Food Services Transport and Storage
Real Estate Activities Mining and Quarrying
Electricity, Gas, Steam & Air Conditioning Supply Public Administration & Defense
23,8% 5,7% -3,0% 4,4% 0,1% 2,2% 2,3% 8,4%
Sector
% Growth
2007 - 2014% Growth
2013 - 2014 173.020 (12,1%) 3,9% 3,5% 2,4% 2,3% 166.780 (12,0%) 3,7% 3,5% 2,4% 2,4% 145.135 (11,8%) 3,0% 3,8% 2,6% 2,5% 123.320 (12,5%) 2,6% 4,4% 2,8% 2,7% 2014 2013 2010 2007 1.428.005 88% 12% 1.387.995 88% 12% 1.227.795 88% 12% 987.365 87%13% 11 sectors presented in Slide 6
3.495 (0,24%) 0,09% 0,06% 0,06% 0,03% 3.355 (0,24%) 0,09% 0,06% 0,06% 0,03% 3.100 (0,25%) 0,10% 0,06% 0,06% 0,03% 3.605 (0,37%) 0,18% 0,06% 0,09% 0,04%
9 ‘small’ sectors bundled in Slide 5
12,4% -25,5% 52,1% -4,7% 0,0% 21,7% 15,5% 119,9% -8,0% 130,0% Other n.e.c.
9 ‘small’ sectors bundled in Slide 6
Development of Enterprises per Industry
Appendix
Development of Professional Services
Development of Professional Services firms
(1999 – 2014)
*
123.080 40% 2014 299.245 2013 285.670 2012 278.270 2011 257.790 2010 240.080 2009 221.620 2008 199.935 2001 300.000 2003 111.155 88.915 2004 81.760 82.450 100.000 2002 78.540 113.630 1999 91.080 2005 2006 171.665 2007 200.000 0 2000 0 Market Research +47% Scientific Research Public Relations Notary 2,1% 1,9% 1,1% 0,9% 0,5% 2013 2014 2,2% 2,1% 2,7% 9,5% 10,0% 2,7% 1,8% 2,6% 1,2% 1,0% 0,7% 2007 10,3% 2,8% 2,0% 2,4% 1,2% 1,1% 0,7% 2006 1,5% 2,0% 2,6% 1,9% 1,2% 0,5% 2005 9,9% 1,6% 2,1% 2,5% 1,9% 1,3% 0,5% 2004 1,9% 1,6% 0,7% 2001 12,3% 2,3% 2,4% 3,2% 1,8% 1,6% 0,9% 2000 12,7% 2,4% 2,4% 3,2% 2,1% 1,6% 1,0% 1,2% 1,0% 0,6% 2009 9,9% 2,6% 1,7% 2,7% 1,2% 1,0% 0,6% 2008 1,1% 1,9% 2,3% 1,2% 0,9% 0,5% 2011 0,9% 0,5% 10,0% 2,8% 1,9% 2,6% 1,2% 0,9% 2012 9,6% 0,6% 2010 10,1% 2,8% 1,9% 2,7% 2,7% 10.000 9,7% 1,5% 1,4% 0,5% 2003 11,6% 1,8% 2,4% 2,1% 2,4% 3,1% 2,0% 1,6% 0,7% 2002 11,7% 3,1% 2,4% 1,8% 1999 13,0% 2,5% 2,4% 3,2% 2,2% 1,6% 1,0% 5.000 30.000 20.000 2,7% 9,8% 25.000 Law Architecture 15.000 9,2% 1,9%6 sectors presented in Slide 7 6 segments bundled in Slide 7
Appendix
Intervals for Employee Size
34
Consultancy.nl
Public Relations
Notary
Architecture
Law
Advertising
Management
Consulting
Other Professional
Services
Scientific
Research
Engineering
IT Consultancy
Market Research
Industry % Emp.23.1%
189.662
20.0%
159.303
13.9%
114.200
13.6%
112.100
7.9%
65.244
6.9%
57.000
4.8%
39.100
4.1%
34.080
2.5%
20.400
1.8%
15.000
0.8%
6.758
0.6%
4.897
817.744
professionals
Accounting
Employees per Segment9.640
6.758
16.623
15.000
Ratio Analysis Mean Interval Estimate
5.620
4.897
Professional Services Market Study 2014
Employee Estimate per Method
Based on Ratio
Analysis approach,
however a different
method would lead
to slightly lower or
higher estimate
28.438
34.080
167.150
189.662
17.475
20.400
57.378
57.000
45.010
65.244
21.475
39.100
86.898
114.200
74.738
112.100
139.015
164.200
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%)
1.200.000 1.000.000 800.000 600.000 400.000 200.000 0
+32%
2009 1.158.410 2008 1.088.375 2007 987.365 2006 746.365 2005 719.405 2004 705.180Development of total Dutch enterprises
(2004– 2009)
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.
