Crisis Management Agencies & Consultancies

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Crisis Management Agencies & Consultancies

Organizational thought leaders in form of market research and professional organizations such as the Institute for Crisis Management and Persistence Market Research have published data showing that the U.S. emergency management services industry is expected to have a size of $13.945 billion by 2024 and that within the overall crisis management arena, mismanagement is among the most reported type of crisis situation reported, while discrimination, cybercrime, and catastrophes also hold a significant a share. Key players in this industry report strong growth and solid revenue figures, for example, Deloitte's Risk Advisory segment showed revenue of over $542 million in 2019. A full deep dive into these findings has been provided below.

Thought Leadership Insights

#1: IBISWorld

  • IBISWorld states that the natural disaster and emergency relief services industry in the United States had a market size of around $12.6 billion as of 2019, with a growth rate of 6.2% between 2014 and 2019.
  • In 2019, the natural disaster and emergency relief services industry in the United States had a growth rate of 1.3%.
  • IBISWorld reports that the natural disaster and emergency relief services market in the United States consists of around 1,882 businesses and employs around 31,884 individuals.

#2: The Institute for Crisis Management

  • The Institute for Crisis Management recorded a total of 782,336 crisis-related news stories in 2018 (globally). Among these, 68% of cases were noted as smoldering (i.e. long-lasting, slow to develop) as compared to sudden crisis emergencies, which accounted for 33%.
  • Many leading global brands (many that are based in the U.S.) experienced crisis situations in 2018 including Boeing, Nissan, Uber, Tesla and Fiat; General Electric, Papa John’s Pizza, Starbucks, Air France, Johnson & Johnson, Marriott, Google, Facebook, and the United States Olympic Committee. Additionally, the following news organizations also experienced crisis situations: NBC, CBS, Fox News, and PBS.
  • Mismanagement was the number one cause of crises reported in 2018 according to the Institute for Crisis Management, accounting for a 22% share. Sexual harassment and assault accounted for 9.4%, whereas mass casualties accounted for 0.6%, and cybercrime accounted for 12.8%. Other categories of note are white-collar crime (5.4%), whistle-blowing scandals (5.5%), labor disputes (9.4%), environmental damage (3%), discrimination (14.3%), defects and recalls (2.8%), consumerism activism (2.3%), and catastrophes (8.2%). Other types of crisis situations accounted for the remaining 4.9% which includes class actions, financial damage, hostile takeovers, and workplace violence.

#3: Persistence Market Research

  • According to Persistence Market Research, the U.S. emergency management services market was worth around $7.1 billion as of 2015 and is expected to realize a size of $13.945 billion by 2024, growing at a rate of 7.8% CAGR during this period.
  • Emergency operation services is the top-performing segment of the U.S. emergency management services market, with a share of 59.8% and a growth rate of 8.7% CAGR.
  • The private sector of the U.S. emergency management services market was sized at $4.5 billion as of 2015. Telecom and IT are the top-performing verticals in the private sector of this market, showing a growth rate of 9.9% CAGR.

#4: Refresh Leadership

  • According to a survey conducted by Refresh Leadership, 32% of companies surveyed said they have no crisis management plan, while 33% said they were "as prepared as possible to respond to a crisis."

Financial Review of Crisis Management Key Players

Deloitte:

  • Deloitte's 'Risk Advisory' business segment accounts for 7% of the company's total revenue. Overall, the company's revenue was around $545,286,998 USD (or, 3.732 billion DKK). Additionally, the company's total staff costs were reported as 2.288 billion DKK in 2019 ($330 million USD) and external expenses were 1.139 billion DKK ($170 million USD).
  • The company states that their risk advisory business segment is their fastest growing area of business, especially with regard to cyber innovation and services and regulatory compliance.
  • As of 2019, the company employed 199 people in their Risk Advisory segment, and the segment saw revenue growth of 14%.

IBM:

  • According to the company's 2018 annual report, IBM's "major operations consist of five business segments: Cognitive Solutions, Global Business Services, Technology Services & Cloud Platforms, Systems and Global Financing." It appears that the company's crisis management services fall under the global business services segment and likely overlaps with their technology platforms segment, however, their annual report does not make any specific mention of their crisis management services or the financial operations for this specific segment. Instead, the company only reports total financial breakdowns for their five overall core segments. This financial breakdown is shown on page 146 of this report.

Honeywell:

  • Although Honeywell's most recent annual report makes no mention of crisis management specifically, based on analysis of the company's overall offerings, it would appear services related to this market are largely woven throughout the company's various business segments. After analyzing the company's business segment descriptions in their annual report, a logical assumption was made that their crisis management offerings likely fall under their safety solutions segment and their business technologies segment.
  • Honeywell's building technologies segment (for buildings specifically as opposed to homes) reported a revenue of $5.3 billion as of 2018. The company's administrative related expenses for the total building technologies segment (both buildings and homes) was $1.624 billion as of 2018. With regard to technologies for buildings specifically (excluding homes), sales increased 1% in 2018 compared to the previous year.
  • The company's safety solutions (excluding productivity solutions) segment reported a revenue of $2.278 billion as of 2018. The company's administrative related expenses related to their total safety and productivity solutions segment was $1.1 billion in 2018. The company's sales of safety solutions increased 5% in 2018 compared to the previous year.

NEC:

  • Based on an analysis of NEC's product lines, it appears much of their crisis management related services fall under their safety segment; these safety services include public safety related products and services along with cyber security solutions, with both of these sub-segments offering crisis management-related products and services specifically. For example, services for counteracting cyber attacks.
  • NEC's safety segment falls under the company's global business division. This division saw a revenue of 453.7 billion yen ($4.13 billion USD) as of 2018, and a loss of 28 billion yen ($250 million USD). In addition to the safety segment, this division also contains the company's software services for service providers segment, network infrastructure for submarine systems segment, system devices/displays segment, and energy storage solutions segment, and is also home to six subsidiaries. This is important to note as all of these business elements fall under this same revenue umbrella.
  • The company's annual report notes that their safety segment saw increased sales that lead to the global business division's revenue growth of 4.8% (20.7 billion yen, or $190 million USD).
  • Furthermore, the company notes that their opportunities for the safety segment lie in expansion to meet the demand for safety solutions in countries where there is growing interest in safety and security.

Hexagon AB:

  • Hexagon AB has various business segments. The one that appears most relevant to crisis management is their safety and infrastructure segment, which includes public safety, utilities, and transportation solutions, along with their geospatial segment which includes defense solutions.
  • Hexagon's most recently published annual report states that growth in the company's North American public safety solutions segment was "solid" during 2019.
  • The 2019 annual report shows that the company's public safety and defense segments fall under the umbrella of their geospatial enterprise solutions division. This division saw net sales of 514.9 million EUR ($561.48 million USD), with the public safety segment accounting for a 9% share and the aerospace and defense accounting for a 12% share of these sales during the fourth quarter of 2019. Meanwhile, the Americas (North and South) hold a 41% share of this segment.
  • Hexagon does not report any expenses at the segmented level.

The Response Group:

  • The Response Group is a privately held company and does not have an annual report publicly available that can be analyzed for this research. However, it appears that this company's business focuses entirely on providing products and services for the emergency response industry.
  • The company's LinkedIn profile lists their employee count at 51-200 employees, while Crunchbase reports the employee count in the 101-250 range.
  • Crunchbase does not have any funding/investment data for this company.
  • Rocket Research states that this company has a revenue of $16.80 million, however, it is unclear how Rocket Research came to this conclusion. Zoominfo has the company's revenue much lower, at $9.7 million. Likewise, Dun & Bradstreet also reports this company's revenue at around $9.7 million. Meanwhile, Glassdoor reports that revenue as 'unknown'.

Research Strategy

To compile this research, we first began by trying to identify thought leaders in the realm of crisis management and looking to see if they have made any comments with regard to the size or financial performance of the crisis management industry in the United States. While we were able to identify a number of individual thought leaders in this field, we did not find any who were specifically focusing on things like the financial performance of the market itself. Instead, these thought leaders were discussing things like best practices for the industry in general. Therefore, we ultimately decided to switch gears and dig for any available data and statistics that show the size and market shares that exist within this market. In doing so, we found that the publishers of this type of information tend to be market research organizations, rather than individual thought leaders. Although there do not appear to be any U.S.-specific market reports that address "crisis management" as a whole perspective, we were able to find fragments of data and statistics that address the various sub segments that make up this larger market. It should also be noted here that additional research could potentially uncover even more related insights.

When conducting the company analysis portion of this research, we analyzed the individual business segments, product lines, and available financial information as reported in each company's annual report in order to first identify which business segments/divisions are home to the company's crisis management-related products and services and then to see if the company had any individual financial breakdowns in their annual report that were relevant to each of these segments/product lines. While this research uncovered an abundance of insights, it should be noted here that due to the large, complex nature of these companies and the fact that the types of financial data they choose to make public in their reports vary from one company to the next, our team opted to focus on pulling out any relevant insights that were available for each company by doing a thorough analysis of each annual report.
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