The Business Services Industry
The business services industry is a category of businesses that perform professional support activities to companies. These activities may be related to subjects such as consulting, accounting, transportation, cleaning, hospitality or traveling. This type of business can be found at both large and small scales. Some companies have in-house services, while others contract with external service providers to improve efficiency and reduce costs. Outsourcing services can also allow the internal team to concentrate on core functions while retaining expert skills and allowing companies to adapt to changing demand.
Companies in the business services industry provide a wide range of support functions to other businesses, such as marketing, advertising, accounting and staffing. In addition, they may offer a variety of goods to other companies, such as office equipment and supplies, packaging, and transportation. Services to customers and clients may be provided in person or remotely.
These industries are part of the larger Service-providing industries supersector. The industry comprises about 420,000 companies in the U.S., with a combined annual revenue of nearly $950 billion. This sector has grown significantly as a result of the expanding international market for these types of services, which has increased the need for firms to maintain competitive and innovative products in order to remain profitable.
For example, a service-based company may help a manufacturing firm develop a new product line by conducting research and testing prototypes. Another example is a consulting firm that provides advice to companies on how to become more efficient and competitive. The industry may also include a variety of other services, such as those that assist with a company’s IT infrastructure, which is included in the information technology (IT) sector, or logistics and shipping, which are classified in Transport Manufacturing.
Unlike goods, which can be stored and sold for use in the future, services are intangible and cannot be inventoried. As a result, a service is only available when it is needed. This is why it is important for a company to provide the best possible service, as it can influence a customer’s satisfaction and loyalty.
The qualifications for a career in this field vary according to the industry. Some jobs in this field require only a high school diploma or GED certificate, while others may require a bachelor’s degree or higher. Those who want to work in the customer-facing industries should have strong interpersonal and communication skills. This is especially true for positions in the retail and food service industries, where customer satisfaction is paramount. In some cases, a job in this field can be obtained through an internship. This will give the candidate an opportunity to gain hands-on experience and determine if this is the right career path for them.