The U.S. Professional Services Industry
The United States is the world’s most desired location for professional services firms.
In today’s integrated global environment, businesses find it critical to access the business processes and client base offered in the United States.
As a leader in the global market, the U.S. professional services industry comprises about 770,000 firms with combined annual revenues of nearly $1.3 trillion. In 2010, the professional services industry employed 7.4 million Americans.
The world’s leading professional services companies locate in the United States to serve the large and dynamic U.S. corporate sector. The United States features a transparent, pro-business regulatory environment, strong intellectual property protections, and a reliable judicial system. Together with a highly skilled workforce and intellectual leadership from the boardroom to the classroom, the United States generates a greater and more stable demand for professional services than any other country.
The United States ranks fourth in the Global Competitiveness Report 2010-2011 conducted by the World Economic Forum, and fifth in The World Bank’s Doing Business 2011 ranking fifth for protecting investors and sixth for accessing credit on indivdual measures.
Industry Subsectors
Accounting: Firms in this subsector generated $122.7 billion in revenue during 2010. Firms provided payroll services, financial auditing services, tax preparation services for individuals and corporate clients and other consulting services.
Architectural services: This subsector accounted for more than $54.6 million in revenue
in 2010, with the majority of that revenue generated from non-residential construction. This sector includes firms primarily engaged in planning and designing residential, institutional, leisure, commercial, and industrial buildings and structures. As with engineering firms, many architectural firms are small niche companies that complement the work of larger U.S. firms that have a more global footprint.
Engineering services: This subsector surpassed $181.3 million in revenues in 2010. Industrial and manufacturing engineering contributed most significantly to total revenue. Other contributors included commercial and institutional, transportation infrastructure, and power generation and distribution activities. Engineering services includes firms primarily engaged in the design, development, and utilization of machines, materials, instruments, structures, processes and systems. Services include the preparation of feasibility studies and preliminary and final plans and designs; the provision of technical advice and assistance during the construction or installation phase; and the inspection and evaluation of engineering projects.
Legal services: Legal services generated $239.9 billion in revenue during 2010. Firms in this sector provided a variety of legal services including litigation support, general corporate services, plaintiff and defense work for individuals and companies, patent agent services, paralegal services, and process serving services. The subsector is highly fragmented with the 50 largest firms accounting for less than 15 percent of total revenue. Sufficient cash flow can be a challenge for some firms.
Management consulting: This subsector accounted for $149.7 billion in revenue during 2010. Firms provided consulting services in administrative and general management; human resources; marketing; process, physical distribution and logistics; environmental; and other scientific and technical services.