Jack Honomichi, America’s most respected market research observer, yesterday revealed that the world economic slowdown has hit the nation’s fifty largest indigenous research organizations.
In his annual review of the market, Honomichi reported that the averaged annual growth rate for the fifty companies rose by 7.4% in 2000, down on the 8.5% achieved in 1999 and 8.9% in 1998. Of the top fifty, thirteen last year experienced either falls in revenue or insufficient growth to negate inflation.
Contributing to this trend, says Honomichi, is the growing strength of the US dollar against other currencies. This creates a negative effect on revenues accruing from overseas subsidiaries. Averaged across the top fifty firms, 37% of all revenues derive from non-US operations.
Mergers and acquisitions, another bellwether of prosperity, languished in 2000 compared with the preceding year, with only five of the elite making a research acquisition during the year – none of which involved a fellow top fifty-ranker.
Across all US research organizations, $5.1 billion was earned last year on national marketing/advertising/public opinion research services. But Honomichi highlighted a declining trend: allowing for acquisitions and divestments 2000 revenues were 9% up on 1999, although that year was 10.7% ahead of 1998 – itself 11.6% better than 1997.
Averaged over a thirteen year period to 2000, spending on profit-only research services grew by 9% annually which, adjusted to take account of inflation, reveals a real growth rate of 5.7% per year.
This, said Honomichi, confirms that research within the USA remains a growth industry.
News source: Daily Research News Online