The US business services sector consists of about 400,000 establishments (single-location companies and units of multi-location companies) with combined annual sales of about $810 billion. Major services provided include employment services (about 40% of US sector revenue); services to buildings and dwellings, including landscaping, pest control, and janitorial services (15%); and waste management and environmental remediation services (10%). Other revenue sources include travel arrangement, investigations and security, and office administrative services. Demand largely hinges upon the level of business spending, which in turn depends upon the overall health of the economy.
Despite government policy uncertainties, executive promises of deregulation and substantial tax cuts amid positive labor and equity market trends have led to sustained upticks in the business sentiment index above the index value of 50 – a great sign for companies in the business services space looking to deploy capital for expansion. Moreover, the percentage of services conducted online is expected to increase to 14.8% from 14.2% in 2016, and by 2022 that figure is expected to reach 23.2% of total services. In addition to increased utilization of digital media for more efficient, streamlined services, companies in the business services space will increasingly need to build the value-add of data analytics within their operations as more sophisticated customers begin to undertake these activities in-house. Leaders in the space are now beginning to invest in “people analytics,” employee learning systems, and omni-channel marketing in order to drive employee productivity and streamline consumer experiences.