Insights
Q1 2006 State of the Industry Report
GLOBAL EXECUTIVE SEARCH UP 5.1% FROM Q4 2005 TO Q1 2006
Growth in Alternative Investment Markets and Increased M&A Activity Outside the U.S. Expected to Impact European Executive Search
Continuing the trend in growing revenues within the retained executive search industry, the latest quarterly Association of Executive Search Consultants (AESC) State of the Executive Search Industry report revealed an overall global increase of 8.9 percent in new searches and 5.1 percent in net revenues from Q4 2005 to Q1 2006. Additionally, a year over year comparison showed that average net revenues were 13 percent higher in Q1 2006 than in Q1 2005.
In Europe, UK searches accounted for 33% of the total European market, a 20% increase from Q4 2005 to Q1 2006 and a noteworthy shift from the previous quarter-on-quarter decrease of 11%. The number of searches started in Germany also increased from the previous quarter by 23%, capturing 14% of the total market. Similarly, the number of searches in France increased from Q4 2005 to Q1 2006 by 7%, following a previous quarterly drop of 4%. France accounted for 10% of the European market share in Q1 2006.
Commenting on these trends, AESC President Peter Felix noted, "We are seeing significant executive search activity throughout Europe. In our discussions with hundreds of AESC members we hear that the influence of the Alternative Investment Markets and the interest in M&A outside the U.S. is unquestionably impacting executive search in Europe. Our members are very upbeat about the outlook for executive search in Europe for the remaining three quarters. When Warren Buffet focuses on targets outside the U.S. others are sure to follow, which can bring a significant change in the executive suite."
In Q1 2006 North America captured the largest market share in number of searches started with 45 percent, as compared to Europe which held the second largest market share with 35 percent. Asia/Pacific accounted for 13 percent of the global market, a decrease of 4 percent from the previous quarter.
Consistent with previous quarters, the Financial sector captured the largest share of number of searches started with 24 percent of the market. The Industrial sector followed with the second largest share of 23 percent. Consumer Products (17%), Technology (16%), Life Sciences and Healthcare (12%), Non-Profit (4%), and the Professional Services (2%) sectors rounded out the industry breakdown.
The AESC State of the Executive Search Industry Report is quarterly research carried out by the Association of Executive Search Consultants (AESC) since 2004 on trends in the global retained executive search industry. Data for the report is collected from a consistent sample of AESC member search firms representing the activity of over 1300 executive search consultants in 46 countries worldwide. AESC access to retained executive search data positions this report as a leading indicator of the future worldwide management employment market and a barometer of hiring trends for top-level and seldom advertised positions in key market sectors.