Skip to content

Where is the growth?

May 22, 2017

The Financial Times recently published an analysis of Europe’s fastest growing companies during the period 2012 – 2015. Perhaps the most interesting point is the industry segmentation of the list and the extent to which it reflects issues of market competition, disruption and opportunity.

In reviewing the list, it is notable that many of the fastest growing companies are new entrants – clearly pointing to disruption. In those circumstances, suppliers are likely to face a situation where demands for innovation are accompanied by significant pressures on margin, leading to a demanding market environment. Other sectors may see a higher ratio of growth for established leaders, reducing the challenges in negotiating agreements.

The growth sectors are themselves interesting. The dominance of IT services, consulting and software indicates the extent to which the digital revolution is impacting business. By contrast, the technology itself (including provision of cloud services) does not appear to offer such strong growth opportunities, presumably because it is a relatively commoditized sector, suffering pressure on margins.

It is data of this type that can increasingly be used to inform and develop contracting and commercial strategies – where are the major areas of growth, what sort of companies are driving that growth, what is the impact on profitability, what types of relationship will be of greatest value and which terms and conditions will be most important to win business.

Sector analysis of fastest growing European companies (Source: Financial Times 26th April, 2017)

Rank
Sector
Number of companies
1
IT Consulting, Services & Software
108
2
Retail (including Mail Order & E-Commerce)
91
3
Wholesale
76
4
Construction, Engineering & Landscaping
69
5
Advertising, Marketing & Event Management
60
6
Consulting, Legal & Tax Counselling, Auditing
48
7
Transport & Logistics
45
8
Banking, Financial Services & Insurance
41
9
Mechanical Engineering & Plant Construction
38
10
Electronics, Electrical & Medical Engineering
36
11
Other manufacturing sectors (e.g. Metal or Furniture)
36
12
Gastronomy, Lodging, & Tourism
33
13
Energy & Utilities
31
14
Human Resources
29
15
Health & Social Affairs
23
16
Telecommunications
21
17
Automotive (Dealers, Manufacturers & Suppliers)
19
18
Food Production
19
19
E-Commerce Technology & Marketing
16
20
IT Hardware
16
21
FinTech
15
22
Packaging, Waste Management & Recycling
15
23
Real Estate
14
24
Education
12
25
Facility Installation, Services & Management
12
26
Media (Print, Digital, Broadcasting)
12
27
Security Technology & Services
12
28
Chemicals & Pharmaceuticals
11
29
Cloud Service Provider
11
30
Gaming, Betting & Entertainment
11
31
Big Data & Data Analytics
10
32
Manufacturer of Textiles, Shoes & Accessories
10
Grand total of companies in the list
1000
Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: