Consultations on the restructuring of supply chains and human resources management as well as on the hot topics of digitization, electrification and sustainability were in high demand last year.
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Dusseldorf From the point of view of the German management consultancies, the Ukraine war will only bring about a slight weakening. The industry continues to be optimistic about the current year and expects record business. This is shown by a lightning poll by the Federal Association of German Management Consultants (BDU) on Wednesday.
According to this, the consulting industry expects growth of 10.5 percent for 2022 and would thus exceed the threshold of 40 billion euros in sales for the first time. The current political situation is already factored into the expectations of the companies, because the survey is from the beginning of March.
The value is only slightly, 0.8 percentage points, below that which the deliberations had given in a survey before the outbreak of war in early February. It turns out that the companies are not yet feeling any negative economic effects. The major projects at customers, such as digitization and green transformation, continue unabated.
It was completely different two years ago when the corona crisis broke out. According to the BDU, this had a direct and drastic impact on the industry. Because of the lockdowns, the consultants initially had to completely stop their work with the customers, many projects were stopped or at least extended in time.
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The consulting firms quickly recovered from the Coronadelle. In 2021, sales increased by 10.3 percent to 38.1 billion euros, which was again higher than before the pandemic. Consultations on the restructuring of supply chains and human resources management as well as on the hot topics of digitization, electrification and sustainability were in high demand.
These should also be important drivers this year. The mega-topic of sustainability alone has what it takes for consulting firms to become a long-term business favorite. Many consultancies currently feel slowed down simply by the lack of suitable specialists in all areas.
Supply chain management consulting is on the rise
However, the deliberations would also be affected by a pronounced economic crisis as a result of the Ukraine war. If customers need to reduce their costs quickly, consulting projects are often used. But in the end, the industry as a whole could benefit, said BDU President Ralf Strehlau.
“Putin’s war of aggression in Ukraine, the efforts to improve sustainability, but also the ongoing corona pandemic will inevitably have an impact on economic activity,” said the head of the association. The resulting need for companies to make adjustments regularly turns out to be a driver for the consulting industry. “Change often results in a greater need for advice,” said Strehlau.
The service providers assume that the advice on the realignment of global supply chains will increase again due to the Ukraine war – keyword resilience. The corona pandemic had already revealed the weaknesses in purchasing in industry.
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The restructuring consultants, whose business has only been moderate in recent years, could also benefit. During the pandemic, there were only a few large restructuring cases due to government aid. But that could change quickly in an economic crisis triggered by the war.
Very few German consultancies do direct business in Russia. International giants such as McKinsey and Boston Consulting have already stopped their new business in the country. The “Big Four” of auditing have also separated their Russian national companies from the international network.
More: McKinsey, BCG, Accenture: Consultancies withdraw from Russia