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Archive:Activities of head offices and management consultancy statistics - NACE Rev. 2

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Data from April 2012. Most recent data: Further Eurostat information, Main tables and Database.

This article presents an overview of statistics for the activities of head offices and management consultancy in the European Union (EU), as covered by NACE Rev. 2 Division 70; hereafter referred to as management services.

Table 1: Key indicators, activities of head offices; management consultancy activities (NACE Division 70), EU-27, 2009 - Source: Eurostat (sbs_na_1a_se_r2)
Figure 1: Sectoral breakdown of activities of head offices; management consultancy activities (NACE Division 70), EU-27, 2009 (1)
(% share of sectoral total) - Source: Eurostat (sbs_na_1a_se_r2)
Table 2a: Sectoral breakdown of key indicators, activities of head offices; management consultancy activities (NACE Division 70), EU-27, 2009 - Source: Eurostat (sbs_na_1a_se_r2)
Table 2b: Sectoral breakdown of key indicators, activities of head offices; management consultancy activities (NACE Division 70), EU-27, 2009 - Source: Eurostat (sbs_na_1a_se_r2)
Table 3: Largest and most specialised Member States in activities of head offices; management consultancy activities (NACE Division 70), 2009 (1) - Source: Eurostat (sbs_na_1a_se_r2)
Table 4a: Key indicators, activities of head offices; management consultancy activities (NACE Division 70), 2009 - Source: Eurostat (sbs_na_1a_se_r2)
Table 4b: Key indicators, activities of head offices; management consultancy activities (NACE Division 70), 2009 - Source: Eurostat (sbs_na_1a_se_r2)

Main statistical findings

Structural profile

There were 609 thousand enterprises operating with management services (Division 70) as their main activity in the EU-27 in 2009. Together they employed 2.0 million persons, equivalent to approximately 1.5 % of the total number of persons employed in the non-financial business economy (Sections B to J and L to N and Division 95) and 18.2 % of the professional, scientific and technical activities (Section M) workforce. They generated EUR 115 420 million of value added which was 2.1 % of the non-financial business economy total and 22.2 % of the professional, scientific and technical activities total.

The apparent labour productivity of the EU-27's management services sector in 2009 was EUR 58 thousand per person employed, around 40 % higher than the non-financial business economy average of EUR 41.6 thousand per person employed and also clearly above the professional, scientific and technical activities average of EUR 47 thousand per person employed: in fact, this sector had the highest apparent labour productivity among the seven NACE divisions within professional, scientific and technical activities.

Accompanying this high apparent labour productivity was very high average personnel costs, EUR 54.5 thousand per employee for the EU-27's management services sector in 2009, around 80 % higher than the average for the non-financial business economy (EUR 30.0 thousand per employee) and again well above the average for all professional, scientific and technical activities (EUR 40.5 thousand per employee). The management services sector had the fifth highest average personnel costs among the non-financial business economy NACE divisions in 2009 and the highest ratio among the divisions within professional, scientific and technical activities.

The wage-adjusted labour productivity ratio combines the two previous indicators and shows the extent to which value added per person employed covers average personnel costs per employee. Due to particularly high average personnel costs the EU-27's management services sector in 2009 had a low wage-adjusted labour productivity ratio, just 106.0 %; this was the sixth lowest wage-adjusted labour productivity ratio among all non-financial business economy NACE divisions in 2009 and was also below the professional, scientific and technical activities average (117.0 %).

The gross operating rate (the relation between the gross operating surplus and turnover) is a measure of operating profitability. In 2009, the gross operating rate for the EU-27’s management services sector was 10.0 %, broadly in line with the non-financial business economy average (9.7 %), but lower than the professional, scientific and technical activities average (17.8 %).

Sectoral analysis

The sector is composed of two groups, namely activities of head offices (Group 70.1) and management consultancy activities (Group 70.2). In the EU-27, the management consultancy activities subsector was by far the largest of these two subsectors and in 2009 contributed just overt two thirds (68.5 %) of sectoral value added and three quarters (75.0 %) of sectoral employment – see Figure 1.

The high apparent labour productivity figure for the whole of the EU-27’s management services sector in 2009 was the result of similarly high productivity in both subsectors: EUR 60 thousand per person employed for head office activities and EUR 57 thousand per person employed for management consultancy activities.

In many other respects the subsectors were quite different. The high average personnel costs recorded for the management services sector was mainly due to very high average personnel costs (EUR 71.0 thousand per employee) for the head office activities subsector, although average personnel costs were still high (EUR 45.5 thousand per employee) for management consultancy activities. This large range in average personnel costs translated into very different wage-adjusted labour productivity ratios for the two subsectors. For the EU-27’s management consultancy activities the wage-adjusted labour productivity ratio was 125.3 % in 2009, above the professional, scientific and technical activities average (117.0 %) but below the non-financial business economy average (138.8 %). In contrast, the wage-adjusted labour productivity ratio for the head office activities subsector was just 85.8 %; as this ratio was below 100 % this indicates that average personnel costs per employee were below apparent labour productivity per person employed. The wage-adjusted labour productivity ratio for the EU-27’s head office activities subsector was the third lowest among all non-financial business economy NACE groups in 2009, higher only than retail sale via stalls and markets (Group 47.8) and building completion and finishing (Group 43.3).

For the gross operating rate a wide range of values for the two subsectors could be observed. A particularly low rate was observed for the EU-27’s head office activities subsector, the negative rate (-2.5 %) indicating that the gross operating surplus was negative resulting from personnel costs exceeding value added. This was the lowest of only two negative gross operating rates recorded for the EU-27 among all of the non-financial business economy NACE groups in 2009, the other being a rate of -1.0 % for passenger air transport (Group 51.1). For the management consultancy activities subsector the EU-27 gross operating rate was 20.0 %, more than double the non-financial business economy average (9.7 %) and also above the professional, scientific and technical activities average (17.8 %).

Country analysis

As for most of the professional, scientific and technical activities, the United Kingdom had the largest management services sector among the EU Member States in value added terms in 2009. The United Kingdom’s share of EU-27 value added was 23.1 %, followed by Germany (20.4 %) and France (20.0 %). The next highest share was 8.8 % in the Netherlands which reflected the fact that the Netherlands was the most specialised Member State in this sector, where 3.4 % of Dutch non-financial business economy value added was generated. Other Member States that were relatively specialised in professional, scientific and technical activities included the United Kingdom (where this sector accounted for 3.1 % of non-financial business economy value added), Belgium (3.0 %) and France (2.8 %); Switzerland (3.9 %) was even more specialised than the Netherlands. In Poland, Lithuania, Spain and Cyprus the professional, scientific and technical activities sector contributed between 0.7 % and 0.9 % of non-financial business economy value added in 2009; in Norway the share was even lower, at 0.6 %.

At a more detailed level, France was the most specialised Member State in the head office activities subsector, followed by Belgium and Austria and it was in this subsector that Switzerland was also particularly specialised. For management consultancy activities the United Kingdom and the Netherlands were by far the most specialised (in value added terms).

Several Member States reported wage-adjusted labour productivity ratios below 100 % for the management services sector in 2009, indicating that average personnel costs per employee were higher than apparent labour productivity. The lowest rates were recorded for Italy (82.1 %) and Hungary (90.8 %). In 2009, very few Member States recorded wage-adjusted labour productivity ratios in the professional, scientific and technical activities sector that were above their average rates for the non-financial business economy, the main exceptions being Romania, Latvia, Cyprus and Estonia where management services’ wage-adjusted labour productivity ratios were at least 10 percentage points above the non-financial business economy average.

In contrast, the gross operating rate for management services was higher than the rate for the non-financial business economy in most Member States in 2009, although lower rates were recorded for seven countries, most notably Lithuania, France and Ireland. Relative to their non-financial business economy average, particularly high gross operating rates were recorded for management services by Estonia, Latvia, Spain, Cyprus and Romania, as well as Switzerland and Croatia.

Data sources and availability

The analysis presented in this article is based on the main dataset for structural business statistics (SBS) which are disseminated annually. The series provides information for each Member State as well as a number of non-member countries at a detailed level according to the activity classification NACE. Data are available for a wide range of variables.

Context

This article presents an overview of statistics for the management services sector in the EU, as covered by NACE Rev. 2 Division 70. This division includes the overseeing and managing of other units of the same enterprise (or group), in other words, the activities of head offices. This may involve undertaking the strategic or organisational planning and decision-making role, exercising operational control, and managing the day-to-day operations of related units. This activity includes activities of head offices such as centralised administrative offices, corporate offices, district and regional offices.

Management consultancy activities include the provision of advice and assistance to businesses and other organisations on public relations and communication (including lobbying), as well as issues such as strategic and organisational planning, financial planning and budgeting, marketing objectives and policies, human resource policies, practices and planning, production scheduling and control planning.

This NACE division is composed of two groups:

  • activities of head offices (Group 70.1);
  • management consultancy activities (Group 70.2).

The information presented in this article does not cover the activities of holding companies, not engaged in managing (considered part of financial service activities, Division 64). Also excluded are legal advice and representation, accounting, bookkeeping and auditing activities, tax consulting (which are classified as part of legal and accounting activities, Division 69), advertising agencies and media representation services and market research and public opinion polling (which form part of the advertising and market research sector, Division 73).

Further Eurostat information

Publications

Main tables

Database

SBS – services (sbs_serv)
Annual detailed enterprise statistics - services (sbs_na_serv)
Annual detailed enterprise statistics for services (NACE Rev.2 H-N and S95) (sbs_na_1a_se_r2)
Preliminary results on services, main indicators (NACE Rev.2) (sbs_sc_r2preli)
SMEs - Annual enterprise statistics broken down by size classes - services (sbs_sc_sc)
Services broken down by employment size classes (NACE Rev.2 H-N and S95) (sbs_sc_1b_se_r2)
SBS - regional data - all activities (sbs_r)
SBS data by NUTS 2 regions and NACE Rev.2, from 2008 onwards (sbs_r_nuts06_r2)

Dedicated section

Source data for tables, figures and maps (MS Excel)

Other information

External links

See also

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