Industry insights and figures Office administrative, office support and other business support activities

Operating margin
5.2 %
▼ -0.8pp
2019
Companies
589109
2020

Key insights Office administrative, office support and other business support activities

Actionable signals from current data
EU27_2020
Average operating result: 5.3% of revenue (2019).
Number of companies: 589,109 (2020).

Sector outlook Office administrative, office support and other business support activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Office administrative, office support and other business support activities sector across EU27 average comprises approximately 598,076 enterprises employing about 1,827,630 people and generating €200.0 bn in net turnover in 2019. 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 modest operating margin of 5.3% of revenue in 2019, the sector reports €10.5 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 Office administrative, office support and other business support activities cost mix is reasonably balanced: cost of revenue at 65.0%, personnel at – 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 2011 to 2019 the operating margin moved from 11.3% to 5.3% (-6.0 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 Office administrative, office support and other business support activities

Sector average % of revenue
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Cost structure for Office administrative, office support and other business support activities in EU27_2020, 2011 to 2019, expressed as percentage of revenue.
Revenue / costs 2011 2012 2013 2014 2017 2018 2019
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 26.0% 26.1% 27.1% 26.3%
Gross wages 20.0% 20.0% 20.9% 20.0%
Social and pension contributions 6.0% 6.1% 6.2% 6.1% 5.8% 5.5%
Other costs 62.8% 63.9% 63.0% 72.1% 60.0% 65.0%
Gross operating surplus (EBITDA) 11.3% 10.0% 9.9% 1.6% 6.0% 5.2%

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

Operating result over 6 years

Sector average % of revenue
Average
7.3%
Peak
11.26%
2011
Low
1.58%
2017
Latest
5.25%
2019

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Office administrative, office support and other business support activities (2019)

Recommended next steps

Based on the latest available data for Office administrative, office support and other business support activities