Business Services Sector Industry Profile

Companies in the sector provide support services to businesses, such as office administration, hiring and placing of personnel, security services, travel arrangement, cleaning, and waste disposal. Major companies include ADP, Allegis Group, ManpowerGroup, and Waste Management (all based in the US), along with Adecco (Switzerland), Randstad (the Netherlands), and TUI Group (Germany).

Europe and North America are the primary markets for business services. Worldwide demand in the sector is driven by technology, digitalization, and new communication technologies and infrastructure. As a result, startups have emerged across the world, with business solutions that are innovative, flexible, and sustainable, according to Statista. While large companies may operate globally or within a specific region, many business services firms serve smaller geographic areas near their headquarters.

The US business services sector consists of about 420,000 establishments (single-location companies and units of multi-location companies) with combined annual sales of about $950 billion.

COMPETITIVE LANDSCAPE

Providers of business support services may face competition from customers or potential customers, as these services in many cases can be undertaken in-house. Most segments of the industry feature low barriers to entry, as little capital investment is required to start businesses such as landscaping, pest control, or staffing firms. The low barrier can result in intense competition among small companies, which not only compete with each other, but also with much larger, established companies with more resources.

Large companies are better-positioned to win ...