Consultancy figures reveal manufacturing slump

Consulting income from manufacturing has dropped by around £150m in three years. Last year it stood at £238m - 12% lower than the £269m earned in 2002. More worryingly, the 2003 figure was found to be more than £100m lower than in 2001.

The study indicates that if the decline were to continue, the manufacturing sector could slip from its current position as the fourth largest source of fees, behind the financial, public and communications sectors, and slump to near the bottom of the chart. However, the decline is aligned with a general 10 to 15-year dip in the manufacturing sector.

Management Consultancy has discovered that only 13 firms had any fee income gain from this sector last year - roughly one third fewer firms than two years ago.

Orbys Consulting made the biggest gains with a huge 760% rise between 2002 and 2003. But Capgemini saw a 60% reversal in its fortunes with fee income slipping from £30m in 2002 to £12m in 2003.

The survey found that the fastest growing area is now the public sector, which comprises both central and local government spending and consulting work.

The public sector is now the second largest UK market for consultancy, with fee income having risen by £125m to a huge £975m or 23% of total fee income.

The previous year, the figure was £855m, or 20% of the total.