Consulting Firms Eye Comeback Amid Global Uncertainty

A sharp dip in consulting demand may have reached its low point, as fresh global uncertainties created by a potential Donald Trump presidency could drive companies back to the big four consulting firms for strategic advice, even if reputational damage still lingers.

Over the past couple of years, the professional consulting sector has been navigating a difficult stretch. Growth slowed to just 1.8% in 2024, marking the weakest expansion since the pandemic and significantly down from the 3.4% reported in 2023. Much of this can be traced back to a combination of government budget cuts, a damaging tax scandal and increasing competition from mid-sized private equity-backed rivals.

The Big Four, being PwC, EY, Deloitte and KPMG, have all faced internal restructuring and job losses as clients turned elsewhere. Billions cut from public sector spending hit their revenues hard, while their reputations took a knock after a series of inquiries and public missteps. Meanwhile, newer, more agile firms have been capturing slices of market share with more specialised offerings.

However, the current turbulence of renewed tariffs under U.S. leadership is causing companies to seek deeper strategic insights to manage supply chain disruptions. Large consulting firms look like they could benefit from this uncertainty: their scale and resources may give them an edge as clients confront larger, more complex challenges.

While the Australian consulting market remains subdued at $6.2 billion, upcoming growth could approach 5% by year’s end, returning to more typical pre-crisis levels. A growing segment of clients now report plans to re-engage with big firms, suggesting the sector could be poised for a comeback, especially if firms manage to restore trust and reposition themselves as indispensable advisors in unpredictable times.

Source: Australian Financial Review, Financial Times