Despite the credit crunch in the US, year-end net revenue for the global executive search industry rose 22% from Q4 2006 to Q4 2007. According to the Association of Executive Search Consultants (AESC) State of the Industry Year-End Report, it is the fourth consecutive year of positive industry growth, with compounded growth equalling 86% since 2004.

The AESC quarterly analysis showed a flattening out from Q3 to Q4 2007, but year-on-year trends showed an increase in all industry sectors.  Annual growth was seen in the number of executive searches started (+8%), the fee per search assignment (+24.8%) and the average revenue per search consultant (+13.5%) by the end of 2007.

AESC president Peter Felix said: "The performance of the executive search industry over the past four years has been exceptional. It reflects the tremendous need for executive talent which is being experienced around the world as the baby boomers retire in western countries and major new markets such as China, India and Russia evolve into dynamic market economies."

Financial services only saw a 1% increase in searches started from Q3 to Q4 2007, but it was the industry with the highest year-on-year growth (+11%).  The industrial segment saw a 2.5% quarterly drop, but was up 10% for the year.  The number of searches started in professional services was up 2.2% for the fourth quarter, and 7% for the year.  Life sciences/healthcare saw a quarterly rise of 4.5% with year-on-year growth of 6%.  Technology saw very little quarterly change (+.5%) but saw an annual increase of 4%.  The number of searches started in the consumer segment was down 3.7% in the fourth quarter but remained steady with 2% growth for the year.  The Non-profit segment saw the highest quarterly change (+5%) and an annual increase of 59%, based on a small sample.

The market breakdown by industry changed very little in both quarter-to-quarter and year-on-year analysis.  In Q4 2007, Financial Services held the largest market share with 24%, followed by Industrial (23%), Consumer Products (17%), Technology (15%), Life Sciences/Healthcare (12.4%), Non-Profit (5%), and Professional Services (3.4%). 

The data was collected from a sample of AESC member search firms representing the activity of over 1,500 executive search consultants in 46 countries worldwide.