Business To Business Services Industry

The business services industry is exactly as it sounds: companies provision of business-related services to other businesses as well as final consumers. The basic characteristic of this sector is the production services instead of end Product. Variety of Business services are offered by companies in this industry, these professional business services includes advertising and marketing, legal services, consulting, shipping and logistics, human resources and staffing, security, leasing, outsourcing, and facility management.

The professional and business services industry is made up of three parts: the scientific, professional, and technical services industry (sector 54), the management of companies and enterprises industry (sector 55), and the administrative and waste management and remediation and support industry (sector 56). 

• The professional, scientific, and technical services industry consists establishments that specialize in carrying out professional, scientific, and technical activities for others. 

•  The management of companies and enterprises industry consists (1) establishments that handles the securities of (or other equity interests in) organization and enterprises for the purpose of owning a controlling interest or influencing management decisions or (2) establishments (except government establishments) that administer, oversee, and manage establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decision making role of the company or enterprise.

•  The administrative and waste management and remediation and support industry consist establishments carrying out routine support activities for the day-to-day operations of other organizations. 

The United States business services industry consists of about 340,000 companies with combined annual sales of approx. $580 billion. Major companies include staffing services providers Manpower and Kelly Services; facilities service companies ABM Industries and Rollins Inc; and solid waste handlers Waste Management and Republic Services.

Other key player in this industry include office administrative service firms such as Automatic Data Processing and Iron Mountain; ADT Security Services, and the travel division of American Express. The business services industry is highly fragmented: the 50 largest companies account for less than 25 percent of sector revenue.