Industry insights and figures Activities of head offices; management consultancy activities

Operating margin
14.6 %
▼ -0.1pp
2020
Companies
73435
2020

Key insights Activities of head offices; management consultancy activities

Actionable signals from current data
IT
Average operating result: 14.6% of revenue (2020).
Personnel costs: 27.9% of revenue (2020).
Number of companies: 73,435 (2020).

Sector outlook Activities of head offices; management consultancy activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Activities of head offices; management consultancy activities sector across Italy comprises approximately 73,435 enterprises employing about 129,391 people and generating €26.4 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a healthy operating margin of 14.6% of revenue in 2020, the sector reports €3.8 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Activities of head offices; management consultancy activities cost mix is reasonably balanced: cost of revenue at 61.5%, personnel at 27.9% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2008 to 2020 the operating margin moved from 21.6% to 14.6% (-7.0 percentage points), a deteriorating trajectory that warrants attention. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Activities of head offices; management consultancy activities

Sector average % of revenue
Log in to see the full 13-year history
Cost structure for Activities of head offices; management consultancy activities in IT, 2008 to 2020, expressed as percentage of revenue.
Revenue / costs 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 21.1% 27.8% 21.0% 21.6% 24.7% 26.2% 25.2% 28.7% 28.6% 26.5% 27.2% 26.0% 27.9%
Gross wages 15.0% 19.5% 14.9% 15.4% 17.9% 19.0% 18.0% 20.7% 20.7% 19.0% 19.7% 18.6% 19.8%
Social and pension contributions 6.1% 8.4% 6.1% 6.2% 6.9% 7.2% 7.3% 8.0% 7.8% 7.5% 7.6% 7.4% 8.1%
Other costs 57.3% 62.7% 65.8% 73.4% 65.3% 62.1% 62.4% 59.1% 56.2% 58.4% 58.0% 59.3% 57.5%
Gross operating surplus (EBITDA) 21.6% 9.5% 13.2% 5.0% 10.0% 11.6% 12.3% 12.2% 15.2% 15.1% 14.8% 14.7% 14.6%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 13 years

Sector average % of revenue
Average
13.1%
Peak
21.63%
2008
Low
5.01%
2011
Latest
14.6%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Activities of head offices; management consultancy activities (2020)

Recommended next steps

Based on the latest available data for Activities of head offices; management consultancy activities