Confidence falls in Australia – July 23
In July we released the Source Global Research Australia Consulting Market Report, which found that consulting in the country continued to grow strongly in 2022, with revenues rising by 10% to US$5.75bn. However, with ongoing trade tensions and high inflation stifling business optimism, growth is expected to slow to 8% in 2023.
We once again offered the report as an exclusive to The Australian Financial Review, which covered it in detail on the day of the launch here.
In the release, Dane Albertelli, Research Analyst from Source, said:
“While there is considerable market uncertainty at the moment, what with high inflation and geopolitical tension, the consulting market performed well in 2022, with robust growth of 10%. This can be attributed to a strong bounce back following travel restrictions being lifted and trade with China increasing following the end of their COVID lockdown measures.”
The report also found that with the newly elected Labor party with its focus on sustainability, many companies in Australia have woken up to additional ESG concerns, including compliance and emissions reporting. Almost half of all consulting clients (48%) that Source surveyed in Australia noted that the pivot away from coal has impacted their organisation’s ESG strategy to a large extent.
Dane Albertelli from Source added:
“Australia has previously been viewed as behind the curve when it comes to addressing climate change, but the green priorities of the new government are causing an about-turn within the business community. To be successful, companies must now produce roadmaps that clearly set out how they plan to leverage the long-term opportunities that the green transition has to offer. Although many consulting clients in Australia are bringing green capabilities in house, high-level strategy plans are likely to require plenty of external help. Those consulting firms that can provide true insight into where investment should be placed are set to benefit most in this hot market.”