Slowdown in the diversified consulting market

The slowdown in the Swedish and Finnish consulting industry is now beginning to impact the companies’ figures. Growth is generally weak, and the operating margin has significantly declined. However, one less working day has a negative impact on the figures.

However, this is not a complete picture we are seeing but a highly differentiated market. Some companies and sectors continue to perform strongly. IT-heavy companies, which previously had strong tailwinds, have faced considerably tougher times. Real estate, retail, and HR have also encountered significant challenges.

Cybersecurity/defense and industrial- and energy-related sectors have performed very well, and public investments remain at a stable level.

The growth has slowed down significantly and averaged 7.5 percent during the quarter, which is lower than inflation. Just one quarter ago, it was over 15 percent. Another reason for the growth slowdown is that we have seen far fewer acquisitions recently, which is also a sign of market slowdown. The companies with the highest growth during the quarter were Gofore, Combined X and Innofactor.

In terms of margins, three-quarters of the companies have lower margins compared to the previous year. The quarter shows lower utilization rates, but there is also one less working day compared to the previous year. Exsitec, Combined X, and Gofore have the highest margins.

Half of the companies have fewer employees at the end of the quarter compared to the beginning. Many companies report fewer layoffs and more cautious hiring, combined with fewer acquisitions. Rejlers, Sweco, and Innofactor have seen the most growth in the number of employees.”