Business services industry outlook: Winter 2025

A possible trade war will likely compound uncertainty if the U.S. administration moves ahead with plans to hike tariffs. According to GroupM, global ad spending is projected to grow 7.7% in 2025, compared to 9.5% in 2024. This normalization in spending highlights the need for agencies to work harder for top-line gains, particularly without the benefit of significant events such as the Olympics or a presidential campaign.

Agencies are increasingly focusing on performance advertising and shifting budgets toward sales activation rather than brand building. The industry’s historical single-digit expansion is expected to continue, with organic sales poised to grow 2% in 2025, according to Bloomberg.

Environmental and facility services companies 

Environmental and facility services companies are tackling strategy by investing in two key areas: operational efficiencies and sustainability initiatives.

Firms are focusing on implementing AI tools that enable predictive maintenance and optimization of energy consumption. The sector is also at the forefront of implementing Internet of Things devices that allow facilities to engage in real-time monitoring and data collection. These measures enhance decision making and enable the reallocation of resources within facilities to maximize labor efficiency.

Some companies within this sector are focusing more on sustainability initiatives, including renewable energy or recycling projects designed to increase energy efficiency. Embracing circular economy principles involves minimizing waste and promoting the reuse and recycling of resources, which is becoming increasingly important in facility management.

As the sector shifts its focus, it will need workers skilled in predictive analytics and other areas that leverage AI.

Workforce solutions companies

Labor is crucial for business services companies, and while technology continues to be disruptive, such as the potential for AI to replace the workforce, the real opportunity is how technology can enable the workforce if the right strategy is put into place.

Workforce solutions companies are in a prime position to embrace technology. As labor costs continue to increase, and the demand for labor with specific skill sets also increases, companies may be more inclined than ever to hire outside firms to produce workers for them, whether that’s through staffing firms or by outsourcing human capital management activities.

But this scenario hasn’t come to fruition yet. As shown below, temporary help has continued to decline when compared to the same time last year.