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Scientific & Technical Services
Performance Highlights
The sector expanded amid headwinds such as the outbreak of COVID-19, inflationary pressures, and interest rate hikes. Architects, engineers, lawyers, and interior designers enjoyed growth alongside a booming housing market. IT and management consultants benefitted from rising corporate profits and the increasing prevalence of cloud computing and data analytics.
Geographic Distribution
The highest concentrations of businesses are in California, Texas, Florida, and New York, driven by large populations and economic activity. Proximity to large populations is vital, with the Southeast region dominating the industry due to the high number of businesses.
Industry Outlook
Revenue is expected to grow at a CAGR of 1.7% from 2024 to 2029, reaching $3.2 trillion. Growth in government contract offerings and ongoing trends in technology change, globalization, and environmental needs will drive sector growth. High interest rates are expected to slow growth in some subsectors, but automation and AI will help improve efficiencies.
Competitive Forces
The industry is characterized by low concentration and high competition. Barriers to entry are low, but the sector requires a highly skilled workforce and the ability to adopt new technologies quickly. Successful businesses have a good reputation, secure the latest technologies, and employ a multiskilled workforce.
Major Companies
Notable players include Accenture Plc, International Business Machines Corporation, Jacobs Engineering Group Inc., Omnicom Group Inc., and Kirkland & Ellis Llp.
Revenue
$3.0 trillion
Employees
14 million
Businesses
5 million
Wages
$1.2 trillion
Economic and External Factors
The majority of sector assistance comes from private associations, with indirect assistance from government contracts. The sector is subject to general regulations, with certain subsectors like accounting requiring special certifications.
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