QUESTION:
What impact would all the analyst firms closing down have on the economy?
ANSWER:
“While the immediate impact of all analyst firms closing would include job losses and temporary disruptions in decision-making, the long-term effects would depend on how quickly businesses and industries adapt. The void left by these firms could drive innovation in how market research, consulting, and benchmarking are conducted, but it would likely lead to a short-term slowdown in efficiency and strategic clarity across sectors.”
What are your thoughts regarding the above answer?
ONE FINAL THOUGHT:
Based on the annual revenues of the top three analyst firms, it would sure free up a lot of money and resources to “drive innovation in how market research, consulting, and benchmarking are conducted.”
Gartner:
- Annual Revenue: Approximately $6.14 billion for the trailing 12 months ending September 30, 2024. WallStreetZen
McKinsey & Company:
- Annual Revenue: Approximately $16 billion in 2023. Craft
Kearney:
- Annual Revenue: Estimated at $1.4 billion. RocketBlocks
30
Procurement Insights 
Tahj Bomar
December 3, 2024
I feel it would have more of an impact
piblogger
December 3, 2024
When you say more of an impact, Tahj please elaborate.
Tahj
December 3, 2024
I feel it would have more of an impact on large businesses, as my hunch and research shows they rely more and/or influenced more by the big analyst firms (your revenue stats below are a clear indicator there).
Furthermore, in my experience, I’ve never fully utilized analyst firms due to working at small and midsize companies and prefer to do my own research and gather peer feedback. The analyst firms help generate a shortlist to start (but, I notice smaller and more niche tech solutions are not included in the ‘pay for play’ model to make it on the big boy analyst firm roster). Frankly, small and mid size companies aren’t going to put resources into these firms.
I’d imagine if no analyst firms, independent analysts would see a spike in the requests for their services and expertise or larger firms trying to recruit the best of the best from the analyst firms.
piblogger
December 3, 2024
What I find interesting about the results of the research into this question is that the positives of their disappearance seem to br gateways to to and better ways. Here is an excerpt that stands out:
Potential Mitigation Strategies
Government or Industry Initiatives:
Governments or industry bodies could step in to establish public or semi-public research entities to provide critical market insights.
Collaboration Platforms:
Online platforms and forums for industry professionals to share best practices and insights could grow in importance, democratizing access to information.
Increased University and Academic Collaboration:
Businesses might turn to academic institutions for research partnerships and insights traditionally provided by analyst firms.