The largest management consulting firms in Orange County collectively grew local employment over the past year, an indication of continued positive momentum in the sector during an economic recovery that has pushed along increased business spending in the overall economy.
This week’s Business Journal list tallies the number of local employees at 22 consulting firms with headquarters or significant operations here. The firms collectively had 1,178 employees in their OC offices as of June, up about 5% from a year ago. The gains follow a growth spurt recorded last year that broke a string of several down years.
Ten firms made new hires, and two cut jobs. Six firms maintained their employment levels of last year, and the Business Journal estimated numbers for four to be flat.
n Irvine-based Resources Global Professionals topped the list again, with 208 employees as of June, up by three from a year ago.
The company, which brands itself as RGP, is the operating entity under the publicly traded holding company Resources Connection Inc.
It has about $527 million in market value and more than 3,000 employees overall across 21 countries and 75 offices.
The company is benefiting from businesses’ increased spending.
“We see a lot of work in the information-technology area,” Chief Executive Tony Cherbak said. “Companies are putting in new systems, upgrading systems [and] analyzing customer data.”
He added, “I do think [business] is very geography-specific. OC is a pretty good market. Southern California is an even better market as a whole. But if you look at a place like Europe, that’s more challenging. It depends on where you’re operating and what industry you’re operating in.”
n Experis in Huntington Beach debuted on this year’s list as the second-largest consulting firm with an Orange County presence, with 166 employees here.
Experis is the management consulting arm of Milwaukee-based ManpowerGroup Inc., a publicly traded company with a recent market value of nearly $4.6 billion. ManpowerGroup created Experis in late 2011 when it combined several of its professional services and management consulting units.
The new year brought the company plenty of work.
“During the first half of 2013, there was a clear improvement in business, and our clients are putting their cash to work by revving up initiatives with both project-based and full-time employees,” Brian Goodman, the managing director overseeing the Western region for Experis, said by email. “Our business is growing as a direct result of this increase in human capital expenditures. We are seeing opportunities across the board—from regulatory compliance, internal audit and tax to IT systems and finance transformation initiatives. The increase in professional services spending is occurring in tandem with our clients’ growing investments in innovation, technology and expansion efforts.”
n The Irvine office of Ireland-based Accenture stayed at No. 3. It hired 28 employees in OC over the year—more than any other firm on the list—for a total of 152. The firm has 260,000 employees overall, up from a year-ago figure of 246,000.
n Irvine-based Beacon Resources moved up one spot to No. 9, with 38 employees as of June, up by 13.
Beacon specializes in financial services and accounting work. Private equity firms in particular have boosted its business during and after the recession, according to Mike Kelly, partner and cofounder of the 3-year-old firm.
“We worked with them in the downturn,” he said. “They weren’t buying, but they were fixing up companies. [Now] they’re out buying companies again. That area has picked up surprisingly.”
Compliance requirements also have pushed businesses in various industries to spend money on financial services professionals.
“We’re seeing not only the big public companies but also the emerging companies [come to us],” Kelly said. “They can’t get by with a bookkeeper anymore. They outgrow, or you can’t wear that hat anymore. Compliance has not slowed down at all. [Businesses] cut back so hard during the last five years. There’s no cutting cost in compliance at this point.”
The management consulting industry operates with a potential to maintain a healthy flow of business or to see growth even in economic downturns, thanks to demand from distressed companies for consulting services.
Newport Beach-based CEO Advisor Inc., among others, is a beneficiary.
Mark Hartsell founded the company in 2004. He said he’s seen “a steady growth” in business during the recession.
“Whether the economy is strong or unhealthy, we tend to grow steadily,” he said.
CEO Advisor has eight employees in OC, up from five and good for the No. 20 spot on the list.
The company recently started CEO Advisor Franchising Inc. and is approved in 40 states with franchising rights. It opened a CEO Advisor of Inland Empire last month.
“The economy is firming up, and business owners are more confident now,” Hartsell said.
But caution remains.
“Although business has much improved from recessionary years, most clients are still fairly budget-conscious and [operate under] strict timelines,” said Cherbak of Resources Global Professionals. “In the past, we’d have a consultant out doing a project for three months … [and] that might have turned into several other projects. We don’t see that happening much today. But it’s a natural part of the recovery.”
Download the 2013 OC’s LARGEST MANAGEMENT CONSULTANTS list (pdf)
