Consulting Firms See Surge in Demand as Businesses Seek Guidance on Trump's Tariffs

Consulting firms like PwC, McKinsey & Company, Boston Consulting Group (BCG), KPMG, and SIB have experienced a surge in demand since President Donald Trump announced tariffs aimed at narrowing the $1.2 trillion trade deficit in goods imported in 2024. While the tariffs have roiled financial markets and triggered consumer stockpiling, they have yet to significantly impact the services sector, positioning these consultancies to assist businesses navigating the new trade dynamics and cost increases. Kristin Bohl, a PwC partner for customs and international trade, noted that the firm has seen a noticeable increase in demand since Trump’s tariff announcement on April 2. The challenges are multifaceted, involving finance, tax, logistics, and technology, leading to a doubling or even tripling in client interest. PwC is advising both established and new clients, particularly those who lack experience in strategic trade matters. McKinsey & Company, which launched a “Geopolitics” practice over a year ago, is experiencing similar demand. Cindy Levy, a senior partner at McKinsey, explained that the firm is seeing interest from long-standing and new clients, with a focus on scenario planning, cross-functional responses, and adapting to an unpredictable global environment. Semiconductors, advanced manufacturing, automotive, and electronics industries are highly exposed to trade shifts, and consumer sectors are also becoming increasingly concerned about pricing and sourcing. BCG’s global chair, Rich Lesser, reported several new conversations with existing clients, noting that trade and tariffs were not high-priority topics a year ago. The current demand is helping counterbalance potential losses from the cost-cutting measures led by the DOGE Office under Elon Musk, which threaten consultancy firms’ government contracts. Clients are seeking insight on the potential trajectory of the trade war and how to adapt their operations, with a particular emphasis on productivity improvements and AI adoption. SIB, a specialized cost-reduction consultancy, saw a 43% increase in inquiries after Trump took office and a further uptick following the April 2 announcement. CEO Shannon Copeland highlighted that businesses are bracing for price volatility and its cascading effects across supply chains and vendor contracts. There is a clear sense of urgency, as business leaders aim to stay ahead of the curve rather than reactively manage issues. KPMG’s national operations lead for advisory, Paul Hencoski, emphasized that although demand typically rises with government changes, the recent increase has been particularly pronounced. KPMG is witnessing double-digit growth in revenue and bookings, with its tax and trade, supply chain, and risk and regulatory compliance practices seeing the strongest demand. The industrial manufacturing and consumer retail sectors are particularly active, as companies seek to find alternative sources for materials and components and manage product supply chains effectively. The primary concern among clients is immediate disruption and longer-term strategic adjustments. Many larger companies are focusing on their investment strategies, hiring decisions, and manufacturing footprints, while smaller firms fear the tariffs could jeopardize their operations. Bohl pointed out that smaller businesses are eagerly trying to understand the impacts and develop potential strategies to mitigate risks. Both KPMG and SIB noted a strong push for immediate action, with C-suites, boards, and shareholders demanding comprehensive plans to address the evolving situation. In this context, consulting firms are playing a crucial role by offering guidance on how to navigate the complex tariff landscape, optimize supply chains, and explore new market opportunities. Their expertise in scenario planning and strategic adaptation is essential, helping businesses prepare for both short-term challenges and long-term shifts in the global economy. Industry insiders like Bohl, Levy, and Lesser agree that while the tariffs pose significant challenges, the current demand for consultative services highlights the value these firms bring in times of economic uncertainty. By providing targeted solutions and strategic insights, consultancies are helping their clients remain competitive and resilient. These firms are well-positioned to thrive in the current environment, given their diverse expertise and client base. For instance, PwC, founded in 1849 and headquartered in London, offers integrated solutions across various domains, making it a versatile choice for clients facing multifaceted tariff issues. McKinsey & Company, established in 1926 and based in Chicago, has built a robust practice in geopolitics and trade, enabling it to provide nuanced advice on navigating the complex trade landscape. BCG, founded in 1963 and headquartered in Boston, leverages its global network to offer insights on productivity enhancement and technological integration. KPMG, formed in 1987 and also based in London, is renowned for its expertise in tax and regulatory compliance, making it an invaluable resource for businesses looking to stay legally sound while optimizing operations. SIB, though younger, has quickly gained recognition for its specialized cost-reduction services, addressing the immediate financial pressures faced by businesses. This surge in demand is a silver lining for the consulting industry, which has faced potential headwinds from cost-cutting initiatives within federal agencies. Despite the challenges, these firms are demonstrating their relevance and flexibility in responding to the needs of their clients in an ever-changing economic climate.