April 4th, 2013 – Vienna, Austria – AIMS International, a preeminent global Executive Search and Talent Management organization, has launched the sixth issue of its Business Climate indicator. The ABCA delivers a global insight into the executive search business.
This analysis of the Executive Search Market surveys past, present and expected business conditions in 7 major business segments. It approaches the last 4 months and forecasts the next 4 months on the basis of interviews with AIMS International partners and consultants in 47 countries. The first ABCA was published in Q2 2011.
“Every issue of the ABCA delivers interesting insights for me, as EVP AMERICAS at AIMS International and as an owner of a company with international business relations” comments AIMS International Vice President John W. Poracky.
The ABCA Q1 2013 shows the following significant results:
1. 28% (Δ -2%) of the AIMS International partners and consultants evaluate the current state of business as good, 49% (Δ +4%) as middle and 23% (Δ -3%) as bad. The indices for a stabilization of business which had been visible in ABCA Q2 2012 already, have not materialized. In fact, the number of companies which evaluate the current business situation as good has reached the all time low of 28%. Solely in the EMEA Region,evaluating the situation there is even worse, as only 23% evaluate the situation as good.
How is the present state of business in your company?
Allowing multiple answers, significant differences in the development of important business segments during the last 12 months have become obvious, although the general trend is by the majority.The evaluation of the business situation in FMCG, Retail and Luxury Goods has decreased from 63% of positive answers at its peak at the first issue of the ABCA in 2011/07 to its all time low of 40% in 2013/03 (Δ-23%); the business situation in the Energy segment decreased from 41% in 2011/04 to 23% in 2013/Q1 (Δ-18%).The business evaluation in the IT and Telecom segments went down by 10% starting from 36%. Business in the Industrial, Engineering and Logistics segment (Δ-4%) and Financial Services (Δ-3%) has decreased slowly. The Automotive business segment is remarkably stable (Δ-+0%).Only the business development in the Pharmaceuticals, Health Care and Life Science segment has been evaluated positively, with an increase of 7% from 31% to 38%.
3. Following the answers to the questions about the revenue development in the last 4 months you can see stabilization is not taking place. It is worse. A shift from stable revenues to decreased revenues of the respondent companies took place.
How has your revenue developed in the last 4 months?
4. Alarming is that again only 9% of the companies evaluate their number of current projects as large. Only 47% of the companies evaluate their number of current projects as sufficient, 45% as not enough. Focusing in the EMEA region, the results are even less promising (3% large, 50% sufficient, 47% not enough). Slack labor will lead to redundancy in the 3rd Quarter if the trend should prove stable in 2013 Q2.
5. As for the forecast for the next 4 months, 94% (Δ +9%) expect the business to be stable or better, 6% (Δ -9%) as worse. This could be a signal for a positive change of the business situation in 2013 Q2 and Q3.
How do you forecast your companies business over the next 4 months?
The overall outlook for Q1 2013 was not promising as stated in the last issue of the ABCA in 2012/10. The results of the ABCA 2013/Q2 show slightly positive indicators.