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IMA ANNUAL SUMMARY REFLECTS DIFFICULT TRADING CONDITIONS IN 2010

 
IMA ANNUAL SUMMARY REFLECTS DIFFICULT TRADING CONDITIONS IN 2010
 
The Interim Management Associations Annual Ipsos MORI Market Summary for 2010 reports mixed findings, for the sector over the last year.
 
The research shows a slow down in the number of new assignments started, which fell throughout 2010 by 25%, potentially in response to the changing economic climate, and the freeze in recruitment.
 
Interestingly, despite a surge in Private Sector placements in Q4, the gap between Private/Public Sector demand continued to narrow, with an average annual ratio of 52:48 in 2010 a dramatic change from when the survey began in 2006, which saw Private Sector demand at 70%. 
 
In the Private Sector, use of Interim Management remained consistent with financial services continuing to outperform other industries.  Manufacturing saw an increase over the past year (from 8 per cent), commanding 13 per cent of overall use.  Health saw the largest increase in its use of Interim Management taking a quarter of all Public Sector assignments.
 
Jason Atkinson, IMA Chair comments on the annual report:
2010 has been a difficult year across Private and Public Sectors, with new assignments dipping due to uncertainty over political changes and the resulting budget cuts.  However, whilst Interim appointments were undoubtedly affected over the year the market also proved relatively resilient.  According to the Ipsos results, encouragingly, particular industries have shown a marked increase in use Manufacturing in the Private Sector and Health in the Public Sector.
 
With Public Sector bodies increasingly under pressure to deliver cost savings and with the latest budget cuts putting further pressure on organisations to deliver more for less, it could be argued the case for Interim Management has never been stronger.  Especially in Healthcare, with reform pending, there is a very real need for senior, specialist Interim resource for projects which Trusts do not have the resource internally to utilise.  As PCTs look to planning for the future it is possible we could see the Healthcare sector continue to use, if not increase its use of Interim Managers over the coming year, as the Trusts turn to Interims to manage this significant change and deliver cost savings in accordance with the Government demands. 
 
After a difficult 2010, we hope (and are cautiously optimistic) that we will see growth in the Interim Management industry this year.   It will continue to be our priority to find ways to support and champion the use of Interim Managers, promoting the use of only quality assured, IMA firms.  After all Interim is a flexible, strategic resource which offers value for money, especially as Interims do not come with the lifetime pension liabilities and the other costs associated with permanent staff.

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