Survey Of Independent Professionals Shows Key Segment Optimistic About US Economy In 2004.

M2 Inc. announced the results of its annual comprehensive survey of independent professionals. The survey is noteworthy because it reveals the economic perspective and confidence of a key segment of the U.S. labor market that is rarely tracked by traditional employment statistics. By most accounts, independent professionals comprise 9.6% of the labor market (according to Department of Labor statistics).

A strong 8.2% response rate underscores the significance of this survey. The company surveyed its over 12,000 member national consulting network, a broad cross section of senior-level, highly specialized independent professionals across all industries and functional areas including Top Management and Strategy, Marketing, Finance, Operations, Human Resources and
IT.

Projects and Initiatives are Moving forward for Businesses in 2004 Over 90% of all responses indicate an optimistic outlook for the 2004 economy, with 69% stating they were “cautious but generally positive.” An increase of 82%, compared to last year, stated that they were indeed “optimistic about 2004.” The general opinion of our consultants in all disciplines was that their clients were moving forward on new projects and initiatives.

This positive outlook is particularly compelling when compared to 2003 results. Last year, the majority of consultants felt their clients were “taking a long time to decide about new initiatives.” This year, that hesitation was not seen as a top trend, rather the forward movement on new projects was noteworthy.

The perspective of the independent professionals sector should be important to the business community, since senior level consultants are often engaged early in an economic recovery. M2 President, Marion McGovern notes, “We have always believed that independent consulting is an early economic indicator, unfortunately, there are no governmental statistics to track it effectively.” As one consultant noted in the anonymous survey, “Things really did an about-face for me in early 2003 … as is often the case with consultants, I really began to see the beginnings of the turnaround before they became apparent.”

Consultant Rates May Increase

This optimistic viewpoint translates to increased business ahead; 62% of those polled project an increase in business revenues this year. As more consultants are being sought by businesses, there will be pressure on prices. After years of holding down or reducing their fees, 42% of those surveyed anticipated increasing their fees in 2004. McGovern adds, “It is a labor market, and markets move with supply and demand.”

2004 Business Issues

There were some expected variations among functional specialties on their thoughts on their client’s greatest business issues. Though all disciplines across the board report “revenue growth opportunities” and “cost containment/cost reduction” as their greatest business concerns for 2004, 16% of finance professionals noted their clients were just as concerned with “corporate governance and reporting.” On the other hand, “homeland security issues” and the “international situation” are lowest on the concerns of our consultant’s clients. This too is a significant departure from 2003, where these issues loomed large in the survey results.

View on the 2004 Election

M2 — out of interest — polls our consultants on the current political climate. This year we naturally chose to investigate the perceived outcome of the 2004 elections. When asked about the 2004 election, 89% agreed John Kerry would be running against Bush, and 59% project Bush would win the election. However, when asked about whom they wanted as President, regardless of how they thought the election would turn out, the majority said they would like to see Kerry as the new president. Interesting to note, though not statistically significant, the highest number of write-in votes in the “like to see” as President category went to Senator Hillary Clinton.