Management,
Scientific, and Technical Consulting Services
 Industry
Overview
Management,
scientific, and technical consulting firms influence how businesses,
governments, and institutions make decisions. Often working behind the
scenes, these firms offer resources that clients cannot provide
themselves. Usually, one of the resources is expertise -- in the form of
knowledge, experience, special skills, or creativity; another resource
is time or personnel that the client cannot spare. Clients include large
and small companies in the private sector; Federal, State, and local
government agencies; institutions, such as hospitals, universities,
unions, and nonprofit organizations; and foreign governments or
businesses.
The management,
scientific, and technical consulting services industry is diverse.
Almost anyone with expertise in a given area can enter consulting.
Management consulting firms advise on almost every aspect of corporate
operations, including marketing; finance; corporate strategy and
organization; manufacturing processes; information systems and data
processing; electronic commerce (e-commerce) or business; and human
resources, benefits, and compensation. Scientific and technical
consulting firms provide technical advice relating to almost all
nonmanagement organizational activities, including compliance with
environmental and workplace safety and health regulations, the
application of technology, and knowledge of sciences such as biology,
chemistry, and physics.
Larger
consulting firms usually provide expertise in a variety of areas,
whereas smaller consulting firms generally specialize in one area of
consulting. Administrative management and general management consulting
services firms, for example, offer advice on an organization's
day-to-day operations, such as budgeting, asset management, strategic
and financial planning, records management, and tax strategy. A
manufacturing firm building a new factory might seek the help of
consultants to determine in which geographic location it would incur the
lowest startup costs and how to build the equipment and design the
building layout in order to increase workplace safety and reduce human
error. A family opening a new restaurant might hire a consulting firm to
help develop a business plan, provide tax advice, or develop
occupational safety and health systems for employees, such as providing
slip resistant floors and shoes. Consulting firms also might advise
clients in the implementation and use of the latest office technology or
computer programs that could increase office productivity. Some clients
might turn to consulting firms to manage the financial aspects of their
business. Consultants may provide insight into why a division of the
company is not profitable or may recommend an investment strategy that
meets the client's needs.
Another specialty
within management consulting is process, physical distribution, and
logistics consulting services. Firms in this industry specialize in the
production and distribution of goods, from the first stages of securing
suppliers to the delivery of finished goods to consumers. Such firms
give advice on improvements in the manufacturing process and
productivity, product quality control, inventory management, packaging,
order processing, the transportation of goods, and materials management
and handling. A domestic manufacturing firm might hire a logistics
consulting firm to calculate shipping rates and import duties for goods
being exported or to determine the most cost-effective method of
shipping products. Consulting firms in this industry also advise on the
latest technology that links suppliers, producers, and customers
together to streamline the manufacturing process. Finally, firms in the
industry might suggest improvements to the manufacturing process in
order to utilize inputs better, increase productivity, or decrease the
amount of excess inventory.
While
some management consulting firms specialize in a particular business
process, others provide a range of business services specific to one
industry, such as health care. Many professionals lack the business
expertise to manage their practice effectively. Consultants advise these
clients regarding the same management issues as they do other
businesses, such as staff recruitment, compensation and benefits, asset
management, marketing, and other business operations. Some consultants
offer advice on matters pertaining directly to the industry in question
-- for instance, for the health care industry, compliance with biohazard
removal and patient confidentiality regulations, avoidance of
malpractice suits, and methods of dealing with managed care and health
insurance companies. Industries such as legal services,
telecommunication, and utilities also have consulting firms that
specialize in specific issues.
Scientific and
technical consulting services firms provide services similar to those
offered by management consulting firms, but the information is not
management related. One of the largest specialties in scientific and
technical consulting services is environmental consulting services.
Environmental consulting firms identify and evaluate environmental
problems, such as inspecting sites for water contaminants, and offer
solutions. Some firms in the industry advise clients about controlling
the emissions of environmental pollutants, cleaning up contaminated
sites, establishing a recycling program, and complying with government
environmental laws and regulations. A real estate developer, for
example, might hire an environmental consulting firm to help design and
develop property without damaging natural habitats, such as wetlands. A
manufacturing or utilities firm might hire environmental consultants to
assess whether the firm is meeting government emissions standards, in
order to avoid penalties before government regulators inspect the
property in question. Finally, many government agencies contract work
out to environmental consulting firms to assess environmental
contamination in a particular geographic area or to evaluate the costs
and benefits of new regulations.
Occupational
safety consulting services firms provide services similar to those
offered by government agencies and private businesses, identifying
workplace safety hazards and ensuring that employers are in compliance
with government worker safety regulations. Safety consulting firms might
identify hazardous materials or systems that may cause illness or
injury, assess safety risks associated with machinery, investigate
accidents, and assess the likelihood of lawsuits resulting from safety
code violations. Some might specialize in a particular type of hazardous
material, while other consultants might specialize in a particular
industry's safety, such as that of construction, mining, manufacturing,
health care, or food processing. As with environmental consulting firms,
many government agencies contract work out to safety consulting firms
for help with safety engineering, technical projects, and various kinds
of assessment.
Scientific and
technical consulting firms also advise on a diverse range of issues
relating to the physical and social sciences -- issues having to with
agriculture, biology, chemistry, economics, energy, and physics.
Agricultural consulting firms might advise on different farming
techniques or machinery that increases agricultural production. Economic
consultants might develop forecasting models and advise clients about
the potential for a recession or an increase in interest rates that
could affect business decisions. Energy consultants might advise clients
on how to reduce costs by implementing energy-saving machinery. Finally,
biological, chemical, and physics consultants might give theoretical or
applied expertise in their chosen field.
Management,
scientific, and technical consulting has grown rapidly over the past
several decades, with businesses increasingly using consulting services.
Using consultants is advantageous because these experts are experienced,
are well trained, and keep abreast of the latest technologies,
government regulations, and management and production techniques. In
addition, consultants are cost effective, because they can be hired
temporarily and can perform their duties objectively, free of the
influence of company politics.
The vast majority of
firms in the management, scientific, and technical consulting industry
are small, primarily because new firms can enter the industry quite
easily. Licensing, certification, and large capital outlays seldom are
necessary for an individual to become a consultant, and the work can be
quite lucrative for those with the right education, experience, and
contacts. As a result, many wage and salary workers in management,
scientific, and technical consulting services eventually leave
established firms to go into business for themselves. In addition, after
developing specialized expertise, people working in other industries
often start their own consulting businesses, and some experienced
workers perform consulting work after retiring.
Working
Environment
In
2006, production workers in the industry averaged 35.9 hours per week,
slightly higher than the national average of 33.9. However, many
consultants must meet hurried deadlines, which frequently requires
working long hours in stressful environments. Consultants whose services
are billed hourly often are under pressure to manage their time very
carefully. Occasionally, weekend work also is necessary, depending upon
the job that is being performed.
Working conditions in management, scientific, and technical consulting
services are generally similar to those of most office workers operating
in a team environment. The work is rarely hazardous, with a few
exceptions—for example, environmental or safety consultants who inspect
sites for contamination from hazardous materials. In 2006, the industry
had only 0.6 injuries and illnesses per 100 full-time workers, compared
with an average of 4.4 throughout private industry.
In addition, some projects might require many executives and consultants
to travel extensively or to live away from home for extended periods of
time. However, new technology -- such as laptop computers with remote
access to the firm's computer server and videoconferencing
machines -- allow some consultants to work from home or conduct meetings
with clients in different locations, reducing some of the need for
business travel.
Most firms encourage employees to attend employer-paid time-management
classes. The classes teach participants to reduce the stress sometimes
associated with working under strict time constraints. Also, with
today's hectic lifestyle, many firms in this industry offer or provide
health facilities or clubs that employees may use to maintain good
health.
Employment
The
management, scientific, and technical consulting services industry had
about 921,000 wage and salary workers in 2006; an additional 250,000
workers were self-employed and unpaid family workers, comprising 21
percent of all jobs in this industry. The vast majority of
establishments in the industry were fairly small, employing fewer than
five workers (chart). Self-employed individuals operated many of these
small firms. Despite the prevalence of small firms and self-employed
workers, large firms tend to dominate the industry. Approximately 58
percent of jobs are found in the 4 percent of establishments with 20 or
more employees, and some of the largest firms in the industry employ
several thousand people.
Degree
Paths into this Industry
Most
management, scientific, and technical consulting services are fairly
specialized; still, the industry comprises a variety of occupations.
Some of these occupations, such as environmental engineers, are specific
to only one segment of the industry, whereas others, such as
mathematicians, can be found throughout the industry.
Compared with other
industries, the management, scientific, and technical consulting
services industry has a relatively high proportion of highly educated
workers.
Management analysts,
also called management consultants, is the largest occupation in the
management consulting industry. Their work is quite varied, depending on
the nature of the project and the client's needs. In general,
consultants study and analyze business-related problems, synthesizing
information from many sources, and recommend solutions. The solutions
can include overhauling a client's computer systems, improving
just-in-time inventory systems, or selling troublesome parts of
businesses. Because of the varied nature of these jobs, firms hire
workers with diverse backgrounds, such as
engineering,
medicine,
actuarial science,
chemistry, and
biology.
Computer
and information systems managers ensure that the consulting firm's
computer and network systems are fully operational and oversee other
computer and technical workers, such as computer support specialists.
These managers might also supervise certain consulting projects
involving computer and information technology.
Workers in
professional and related occupations are employed mainly in the
scientific and technical consulting portion of the industry. Many of
these workers are engineers
and scientists who utilize their
expertise through consulting. For example,
environmental engineers
and environmental scientists and
geoscientists are employed by environmental consulting firms to
evaluate environmental damage or assess compliance with environmental
laws and regulations.
Other
engineers, such as
agricultural, biomedical,
chemical,
mining and geological,
nuclear, and
petroleum engineers; and
physical and
life scientists, such as
agricultural and food scientists,
biological scientists, chemists,
materials scientists, and
physicists and astronomers, are
employed by consulting firms specializing in their scientific
disciplines. Architects and civil
and industrial engineers are
sometimes employed by safety and security consulting firms to assess the
construction of buildings and other structures, such as bridges, and to
make recommendations regarding reinforcing these structures against
damage.
The rapid spread of
computers and information technology has generated a need for highly
trained computer specialists to design and develop new hardware and
software systems and to incorporate new technologies. Systems analysts
design new computer systems or redesign old systems for new
applications. They solve computer problems and enable computer
technology to meet their organization's particular needs. For example, a
systems analyst from a management consulting firm might be hired by a
wholesale firm to implement an online inventory database.
Computer software engineers, by
contrast, can be involved in the design and development of software
systems for the control and automation of manufacturing, business, and
management processes. Other computer specialists include computer
support specialists, who provide technical assistance, support, and
advice to customers and users, and database administrators, who work
with database management systems software and determine ways to organize
and store data. Computer specialists such as systems analysts,
computer scientists, and
computer engineers sometimes are
referred to simply as "consultants."
Technical
workers also include computer programmers, who write programs and create
software--often in close conjunction with systems analysts--and
engineering technicians, who aid
engineers in research and development. Like systems analysts and
engineers, these workers are found primarily in the business and
management consulting segments of the industry.
Industry
Forecast
Management, scientific, and technical consulting services is projected
to be one of the fastest growing industries over the next decade.
However, because of the number of people looking to work in this
industry, competition for jobs is expected to be keen.
Between 2006 and 2016, wage and salary employment in the management,
scientific, and technical consulting services industry is expected to
grow by 78 percent, much faster than the 11 percent growth projected for
all industries, ranking the industry as the fastest growing industry in
the economy. All areas of consulting should experience strong growth.
Projected job growth can be attributed primarily to economic growth and
to the continuing complexity of business. A growing number of businesses
means increased demand for advice in all areas of business planning.
Firms will look to management consultants to draft business plans and
budgets, develop strategy, and determine appropriate salaries and
benefits for employees. The expansion of franchised restaurants and
retail stores will spur demand for marketing consultants to determine
the best locations and develop marketing plans. The expansion of
business also will create opportunities for logistics consulting firms
in order to link new suppliers with producers and to get the finished
goods to consumers. Finally, businesses will continue to need advice on
compliance with government workplace safety and environmental laws.
Clients need consultants to keep them up to date on the latest changes
in legislation affecting their businesses, including changes to tax
laws, environmental regulations, and policies affecting employee
benefits and health care and workplace safety. As a result, firms
specializing in human resources, environmental, and safety consulting
should be in strong demand.
The increasing use of new technology and computer software is another
major factor contributing to growth in all areas of consulting.
Management consulting firms help clients implement new accounting and
payroll software, whereas environmental and safety consulting firms
advise clients on the use of computer technology in monitoring harmful
substances in the environment or workplace. Consulting firms also might
help design new computer systems or online distribution systems. One of
the biggest areas upon which technology has had an impact is logistics
consulting. The Internet has greatly increased the ability of businesses
to link to and communicate with their suppliers and customers,
increasing productivity and decreasing costs. Technology-related
consulting projects have become so important that many traditional
consulting firms are now merging with or setting up joint ventures with
technology companies so that each firm has access to the other's
resources in order to better serve clients.
The trend toward outsourcing and mergers also will create opportunities
for consulting firms. In order to cut costs, many firms are outsourcing
administrative and human resources functions to consultants specializing
in these services. This should provide opportunities in human resources
consulting for firms that manage their clients' payroll systems and
benefits programs. At the same time, increasing competition has led to
more business mergers, providing opportunities for consulting firms to
assist in the process. Also, as increasing numbers of older business
owners retire, consultants will be used to assist in liquidation,
acquisition, or restructuring of those businesses.
Globalization, too, will continue to provide numerous opportunities for
consulting firms wishing to expand their services, or help their clients
expand, into foreign markets. Consulting firms can advise clients on
strategy, as well as foreign laws, regarding taxes, employment, worker
safety, and the environment. The growth of international businesses will
create numerous opportunities for logistics consulting firms as
businesses seek to improve coordination in the expanding network of
suppliers and consumers.
An increasing emphasis on protecting a firm's employees, facilities, and
information against deliberate acts of sabotage will continue to create
numerous opportunities for security consultants. These consultants
provide assistance on every aspect of security, from protecting against
computer viruses to reinforcing buildings against bomb blasts. Logistics
consulting firms also are finding opportunities helping clients secure
their supply chain against interruptions that might arise from terrorist
acts, such as the disruption of shipping or railroad facilities. Growing
security concerns, rising insurance costs, and the increasing threat of
lawsuits provide added incentives for businesses to protect the welfare
of their employees.
Growth in management, scientific, and technical consulting services
might be hampered by increasing competition from nontraditional
consulting firms, such as investment banks, accounting firms, technology
firms, and law firms. As consulting firms continue to expand their
services, they will be forced to compete with a more diverse group of
firms that provide similar services.
Economic
downturns also can have an adverse effect on employment growth in
consulting. As businesses are forced to cut costs, consultants may be
among the first expenses that businesses eliminate. Furthermore, growth
in some consulting specialties, such as executive search consulting, is
directly tied to the health of the industries in which they operate.
However, some consulting firms might experience growth during
recessions; as firms look to cut costs and remain competitive, they
might seek the advice of consultants on the best way to do so.
Despite the projected growth in the industry, there will be keen
competition for jobs because the prestigious and independent nature of
the work and the generous salary and benefits generally attract more
jobseekers than openings every year. Individuals with the most education
and job experience will likely have the best job prospects.
Related
Degree Fields
Professional
Associations/Resources
Note: Some resources in this section are provided by the US Department
of Labor, Bureau of Labor Statistics.
|
|
