Management consulting in Canada is a high-growth industry that is benefiting greatly from Canada’s strong and steady economic growth. Consistent with a rising demand, management consulting in Canada is continuing to grow. In 2007, management consulting approached the $10 billion mark, and is expected to increase by 5.5 percent to reach over $11 billion by 2010. There are various Canadian initiatives that assist U.S. management consulting organizations access the Canadian market.
Management consulting provides objective information and guidance to clients on a wide variety of management and general business issues such as strategic and organizational planning; financial planning and budgeting; marketing objectives and policies; human resource policies, practices and planning and executive search services. Management Consulting Services generally fall into the following categories:
1. General management consulting
2. Financial management consulting
3. Marketing management consulting
4. Human resources management consulting
5. Production management consulting
6. Public relation services
7. Agrology, agronomy and farm management consulting services
In 2007, the total management consulting market reached a record high of $10 billion dollars and is expected to continuing growing of the coming years. There has been a steady grown in this industry since 2001, when there were approximately 41,000 management consulting service suppliers providing $5.7 billion worth of services to the Canadian market. This growth is a result of Canada’s strong dollar and strong economic growth as well as organizations pursuing growth agendas and increased government spending. In 2001, exports of management consulting services were estimated at $595 million, while imports were estimated at $454 million. Today, these numbers are substantially higher as developments in the Canadian market tend to parallel those in the global market, and both are now rebounding after several years of slow growth. Most of the major international consulting practices are represented in Canada. Opportunities also exist for highly specialized sole practitioners and small and medium-sized niche practices. Small companies can maximize their potential by offering in-depth knowledge in specific interest areas.
From 2001 to 2007, approximately 70 percent of all public and private sector organizations in Canada have used the services of a management consultant at least once. Two thirds of consultants in Canada are employed by firms with more than 100 employees. Some 28 percent of consultants work in organizations with less than 20 employees, and many of these people are considered sole practioners. Recently, the 30 largest consulting firms in Canada accounted for a 61 percent share of Canadian industry revenues.
Demand for services in the private and public sectors is outpacing the global market growth rates. Canada's consulting marketplace is fragmented with a rise in mid-size management consultancies, and a dramatic surge in leading Business Advisory Firms (BAS).
By Lucy Latka