The report below gives a good overview of the Fall 2022 M&A activity in the Business Services Industry Sector. The global business services market has been negatively impacted due to the prevailing macroeconomic uncertainties such as high inflation, high borrowing costs, and recessionary concerns. The likelihood of a recession has increased with the US Fed's announcement of another rate hike of 75 basis points in September 2022. The growth of the business services industry is anticipated to decrease as other central banks are expected to follow the same trend. Shortage of trained workers, cost-cutting strategies used by businesses in other sectors, moonlighting, quiet quitting, and increased marketing costs, are expected to further impact the business services industry. Despite these challenges, the global employment services sector is projected to increase from $1,415.2 billion in 2021 to $1,599.9 billion in 2022, at a rate of 13.1%, as per report published by the Business Research Company. The market is expected to reach $2,512.5 billion by 2026, growing at a CAGR of 11.9% during the period 2022-26, as per the same report. The increased volume of enterprise data, advent of startups in various industries, and the use of automation across sectors such as manufacturing, retail, and healthcare, would lead to the growth of the business services industry. The increase in data volume would require increased data management, which is anticipated to increase the demand for business services across all industries. Overall, the outlook for the business services market is expected to remain positive in the future.
Posted by Brad Purifoy.