Sector Trends Tracker Findings Winter 2025

Winter 2025 Quarterly Sector Trends Tracker of CEOs and C-Suite members at mainly mid-sized professional firms

Completed by 92% of the 79 members of the Forum’s Tracker Research Panel between 22 Dec 2025 and 22 Jan 2026

Commentary

1. The Winter 2025 Sector Trends Tracker was completed between 22 December 2025 and 22 January 2026 by an impressive 92% of the 79 members of the tracker research panel of CEOs and C-Suite members at mainly UK mid-sized professional services firms.

2. The Confidence index shows a modest improvement (82% – up from 79%). The current index is made up of 89% of firms projecting expansion over the next 12 months and 7% contraction. Projected net expansion in new workflow is down from 86% to 84%. Net Headcount projections have is unchanged at 44% – this quarter 58% projecting expansion and 14% contraction.

3. ‘Finance & cash flow’ continues to carry most weight at partner/director discussions (64% up from 60%), followed by ‘Marketing and new business generation’ at 56% up from 51%; Operational performance’ at 50% down from 53%; ‘People and the firm as an employer’ at 41% down from 56%. By contrast, ‘Operational efficiency’ remains the top priority for management (61% up from 56%), followed by ‘Developing people’s skills and capabilities’ (55% up from 46%); and ‘Use of technology’ (53% up from 44%). As regards the constraints
that are preventing firms from achieving optimal growth performance in the current economic climate, ‘Margin erosion’ (64% up from 48% in two quarters); ‘Poor economic outlook’ (56% down from 61%); followed by and ‘Fee pressures’ (53% up from 48%). ‘Political uncertainty’ has back to 27%. ‘Employee turnover’ is back to 14% from 23%, compared with over 70% for much of 2022.

4. ‘Making change happen’ (66% up from 58%) is the management activity that is seen as contributing most to helping a firm achieve its goals. This is followed by ‘Getting the best from the team’ (63% down from 67%) and ‘Communicating effectively’ (53% down from 61%). As regards the dominant management style, 80% (up from 72%) chose ‘Challenge & support’ with 0% selecting ‘Command & control’.

5. As regards being on track for success, the scores for own firm and key clients have both fallen – 55% from 63% for clients; 72% to 70% for own firm, with the gap increasing from 9% to 15%. 25% of firms believe that remote working has increased productivity, with 19% saying that it has decreased. By contrast, over 50% said that remote working had increased productivity in the Autumn 2021 tracker.

6. Client sectors representing more than 10% of revenues include professional services (46% of firms); financial services (40% of firms); technology (23% of firms) and local/central Government (17% firms).

7. 72% (down from 74%) of firms are looking for about the same amount of office space over the next 12 months, with 13% looking for more, and 18% for less space. Only 5% of employees work full time at the office, with 91% working between a quarter and half the time at home.

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