2023 Q3 – Challenging Swedish and Finnish consulting market
The challenges persist in the consulting industry, but it is a diversified market, and many companies have already adapted to the new market conditions. The median growth averaged 6.4 percent for the listed Swedish and Finnish consulting firms, compared to 19.9 percent a year ago. The operating margin has also decreased for the majority of companies. This is according to Cinode's compilation of Q3 reports from listed consulting firms
IT, once the driving force, is now facing more challenges. This is also the case for the real estate and e-commerce sectors.
– Ework, the consulting broker, reports a 21 percent decrease in the number of inquiries compared to last year. Inquiries in the public sector decreased by 26 percent. Still, certain sectors, such as energy, industry, and cybersecurity/defense, remain very strong, says Mattias Loxi, co-founder of Cinode, the leading platform for consulting firms.
The median growth averaged 6.4 percent, which is only one-third compared to a year ago (19.9 percent).
– We also observe a significant drop of 30 percent in the number of acquisitions throughout the year. Gofore and CombinedX achieved the highest growth figures, driven by a combination of acquisitions and strong organic growth. Similarly, Addnode expanded by acquiring larger companies, while Combitech, with a focus on defense, also showed significant growth.
Margin-wise, six out of ten consulting companies have lower margins. However, the quarter is affected by one less working day than last year. Only one company is operating at a loss, and many have cut costs. Softronic has the highest margin among the companies, along with Prevas and Avensia, which, despite exposure to e-commerce, have quickly been able to adapt their costs.
– Even though some cuts have been made in consulting firms, and the pace of recruitment has slowed down, most companies have increased the number of employees during the quarter. Since the beginning of the year, a third of the companies have fewer employees, concludes Mattias.
View the full compilation of consulting firms' third-quarter reports for 2023 in the infographic - https://cinode.com/en/blogg/economic-reports/2023-q3/
Mattias Loxi
Co-founder/CMO
mattias.loxi@cinode.com
+46 73-514 21 70
About Cinode
Who knows what, who’s available, what can I sell? Cinode is the all-in-one Saas-platform that boost consultancy's growth by giving crucial insights into sales, delivery, and skills.
“Cinode is the best solution on the market for consulting companies” - Jami Sjöblom Sales Director, Nitor.
Cinode, established in Stockholm in 2010, has emerged as the leading Saas-platform for consultancy firms in the Nordics. Cinode enhances growth and profitability. It provides essential insights into sales, delivery, and skills, helping nearly 300 customers streamline operations. The platform's capabilities include quick client response times, optimized utilization, and transparent information for informed decision-making.
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