Executive search in europe up 9% from Q4 2005 to Q1 2006

Continuing the trend in growing revenues within the retained executive search industry, the latest quarterly Association of Executive Search Consultants (AESC) State of the Executive Search Industry report revealed an overall global increase of 9 percent in new searches and 5 percent in net revenues from Q4 2005 to Q1 2006. Additionally, a year over year comparison showed that average net revenues were 13 percent higher in Q1 2006 than in Q1 2005.

The number of searches in Europe also increased by 9 percent from Q4 2005 to Q1 2006, in comparison to the same period the previous year searches in Europe were 4 percent lower in Q1 2006 than in Q1 2005. UK searches accounted for 32 percent of the total European market, a 20 percent increase from Q4 2005 to Q1 2006 and a noteworthy shift from the previous quarter on quarter decrease of 11 percent. The number of searches started in Germany also increased from the previous quarter by 23 percent, capturing 14 percent of the total market. Similarly, the number of searches in France increased from Q4 2005 to Q1 2006 by 7 percent, following a previous quarterly drop of 4 percent. France accounted for 10 percent of the European market share in Q1 2006.

Commenting on these trends, AESC President Peter Felix noted, ìWe are seeing significant executive search activity throughout Europe. In our discussions with hundreds of AESC members we hear that the influence of the Alternative Investment Markets and the interest in M&A outside the U.S. is unquestionably impacting executive search in Europe. Our members are very upbeat about the outlook for executive search in Europe for the remaining three quarters of 2006. When Warren Buffet focuses on targets outside the U.S. others are sure to follow, which can bring a significant change in the executive suite.î

In Q1 2006 Europe captured the second largest market share in number of searches started worldwide with 35 percent, as compared to North America which held 45 percent. Asia/Pacific accounted for 13 percent of the global market, a decrease of 4 percent from the previous quarter.

Consistent with previous quarters, the Financial sector captured the largest share of number of searches started with 24 percent of the market. The Industrial sector followed with the second largest share, 23 percent. Consumer Products (17%), Technology (16%), Life Sciences and Healthcare (12%), Non-Profit (4%), and the Professional Services (2%) sectors round out the industry breakdown.

The data from this report was collected from a sample of AESC member search firms representing the activity of over 1,200 executive search consultants in 215 offices, located in 42 countries worldwide. AESC access to quarterly job search data positions this report as a leading indicator of the future worldwide job market and a barometer of hiring trends in key market sectors.

A full copy of the Q1 2006 State of the Executive Search Industry report is available upon request for all AESC member firms and the press. Please contact Natasha Renton at nrenton@aesc.org for more information.