Market assessments up in the Norwegian
PR consultancy business on the background of continued general
economic upturn.
Norway Editorial Hollis Europe 2006
The Norwegian economy continued to exhibit high growth in 2005. So far in the economic upturn, the mainland economy has grown by an average of about 3.5 per cent quarterly, measured as an annualised rate. Economic growth in Norway has generally been strong over the past 15 years, although with some cyclical variations. A clear upturn in the years from 1993 to 1998 was followed by a period of more moderate growth and a mild downturn in 2002 and into 2003.
The expansion has gradually broadened. Low interest rates have contributed to a relatively sharp rise in household demand throughout the upturn. At the same time, solid global growth has led to increased demand for many Norwegian export goods and high prices. Fixed investment in the petroleum sector has increased sharply, resulting in growing demand for goods and services supplied by mainland enterprises. Mainland fixed investment has also picked up.
The general economic development is reflected in The Norwegian Public Relations Consultants Association's (NPRCA) latest quarterly forecast survey. More than 70 percent of the member agencies report an increase in order intake and revenues above budget. More than 50 percent of the members expect revenues to increase in the months ahead and more than half of the agencies foresee recruitment demand this year.
A recent, very broadly based survey conducted by the The Norwegian Communication Association confirms the basis for a positive outlook. More than 68 percent of the membership reported that their organisation had purchased consultancy services during the last three years. Not less than 70 percent reported that they were satisfied or very satisfied with the services rendered. The survey included both private and public sector, and an interesting point is that public sector demand increases and surpasses private sector. This development is confirmed in the NPRAC's membership forecast survey, where half the agencies reported public sector demand growth.
Analysing the service portfolio, some distinct developments are easily recognisable. Media contact, including media training, is the discipline showing the sharpest growth. Closely connected is an increased demand for crisis management training and crisis management advisory services.
On the backdrop of Norway's general economic development, it is not surprising that investor relations is on the increase, alongside general strategic consultancy services.
Among the business sectors, IT/telecom and wholesale/retail trade is expected to show the sharpest growth in 2005, a development of course closely related to the increase in household demand.
The Confederation of Norwegian Enterprise (NHO) reports that most sectors have adjusted their market assessments upwards for 2006. Profitability expectations and market outlook among NHO's membership are very positive, to the extent that NHO finds reason to warn against the possible effects of the krone (NOK) remaining strong or even stronger.
However, the general positive outlook is shared by the Norwegian PR agencies. All analyses indicate that the market growth will continue, but the business has matured over the last years and most agencies focus on profitable growth, rather than the explosive development up to the sharp downturn at the turn of the century.
Structurally the PR business in Norway is developing along familiar lines. The bigger agencies, several of them internationally affiliated, experience a stronger growth than most of the smaller ones, even if the smaller or medium sized players partake in the general market increase and some of them increase their market share significantly. During the last months, some agencies have split up and new partnerships have been formed. On the background of the general growth, recruitment is however mostly from outside the business, adding to the overall competence base of the PR sector.
Over the years, the ethical standard of the PR business in general and the relationship between PR consultants and the media in particular are from time to time subject to public debate. This has resulted in a strong focus on adherence to sustainable business ethics among NPRCA's members and the general market demand, not least in public sector, bears witness to the fact that this has been recognised and appreciated in the market place and in the general opinion.
Hauk Lund
Managing Director Sjo & Lund AS
Chairman of the Board NPRCA (NIR)
Norway Editorial Hollis Europe 2006
The Norwegian economy continued to exhibit high growth in 2005. So far in the economic upturn, the mainland economy has grown by an average of about 3.5 per cent quarterly, measured as an annualised rate. Economic growth in Norway has generally been strong over the past 15 years, although with some cyclical variations. A clear upturn in the years from 1993 to 1998 was followed by a period of more moderate growth and a mild downturn in 2002 and into 2003.
The expansion has gradually broadened. Low interest rates have contributed to a relatively sharp rise in household demand throughout the upturn. At the same time, solid global growth has led to increased demand for many Norwegian export goods and high prices. Fixed investment in the petroleum sector has increased sharply, resulting in growing demand for goods and services supplied by mainland enterprises. Mainland fixed investment has also picked up.
The general economic development is reflected in The Norwegian Public Relations Consultants Association's (NPRCA) latest quarterly forecast survey. More than 70 percent of the member agencies report an increase in order intake and revenues above budget. More than 50 percent of the members expect revenues to increase in the months ahead and more than half of the agencies foresee recruitment demand this year.
A recent, very broadly based survey conducted by the The Norwegian Communication Association confirms the basis for a positive outlook. More than 68 percent of the membership reported that their organisation had purchased consultancy services during the last three years. Not less than 70 percent reported that they were satisfied or very satisfied with the services rendered. The survey included both private and public sector, and an interesting point is that public sector demand increases and surpasses private sector. This development is confirmed in the NPRAC's membership forecast survey, where half the agencies reported public sector demand growth.
Analysing the service portfolio, some distinct developments are easily recognisable. Media contact, including media training, is the discipline showing the sharpest growth. Closely connected is an increased demand for crisis management training and crisis management advisory services.
On the backdrop of Norway's general economic development, it is not surprising that investor relations is on the increase, alongside general strategic consultancy services.
Among the business sectors, IT/telecom and wholesale/retail trade is expected to show the sharpest growth in 2005, a development of course closely related to the increase in household demand.
The Confederation of Norwegian Enterprise (NHO) reports that most sectors have adjusted their market assessments upwards for 2006. Profitability expectations and market outlook among NHO's membership are very positive, to the extent that NHO finds reason to warn against the possible effects of the krone (NOK) remaining strong or even stronger.
However, the general positive outlook is shared by the Norwegian PR agencies. All analyses indicate that the market growth will continue, but the business has matured over the last years and most agencies focus on profitable growth, rather than the explosive development up to the sharp downturn at the turn of the century.
Structurally the PR business in Norway is developing along familiar lines. The bigger agencies, several of them internationally affiliated, experience a stronger growth than most of the smaller ones, even if the smaller or medium sized players partake in the general market increase and some of them increase their market share significantly. During the last months, some agencies have split up and new partnerships have been formed. On the background of the general growth, recruitment is however mostly from outside the business, adding to the overall competence base of the PR sector.
Over the years, the ethical standard of the PR business in general and the relationship between PR consultants and the media in particular are from time to time subject to public debate. This has resulted in a strong focus on adherence to sustainable business ethics among NPRCA's members and the general market demand, not least in public sector, bears witness to the fact that this has been recognised and appreciated in the market place and in the general opinion.
Hauk Lund
Managing Director Sjo & Lund AS
Chairman of the Board NPRCA (NIR)