- Tags : Consulting | Human Resources Consulting | Price trend | Price forecast | Procurement research | Category market forecast
Recent Price Trend - Human Resources Consulting
During the three years to 2017, the hourly price of HR consulting services has increased at an estimated average annual rate of 0.3%. Such mild growth in service prices has not had a significantly negative impact on buyer power. Moreover, there has been low volatility in prices during the past three years, which has made it easier for buyers to accurately anticipate price trends and budget for purchases.
Although businesses typically have fairly consistent demand for effective staff, strategy, process, administration and organization management, the price of HR consulting services often fluctuates in line with economic cycles. Increased hiring efforts as well as ongoing regulatory issues surrounding employee benefit plans and health insurance have all contributed to a rising need for HR consulting in the past three years, supporting price growth. In addition, an increase in the number of employees and businesses in the United States has led to an expansion in the pool of potential buyers, boosting demand and contributing to rising prices. However, uncertain economic conditions abroad and faltering oil prices have negatively impacted profitability among a portion of HR consulting buyers. The uncertainly that stems from these factors has slightly tempered demand and price in the past three years.
Falling wage costs have also helped to temper price growth, and heavy competition has helped to mitigate the risk of price spikes. Falling input costs allow suppliers to boost profit margins without significant price hikes. Buyers can take their time making purchases because the magnitude of price growth has been small, and year-to-year fluctuations are unlikely. Still, the hourly rate for HR consulting services is expected to continue rising during the three years 2020. Thus, buyers should consider establishing long-term contracts with vendors now to lock in prices before they increase.
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