Research Firm Predicts ARM Industry Growth Near 10% in 2008
According to a recent industry report on the collection business, ARM firms stand to bring in nearly 10 percent more in revenue in 2008 as the industry expands due to increased business outsourcing and soaring consumer debt loads.
The report, released by Los Angeles-based business intelligence research publisher IBISWorld, projects that revenues for collection firms will grow 9.5 percent in 2008 to approximately $15.5 billion after growing at about the same rate in 2007.
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The 36-page report covers standalone collection and debt purchasing firms.
But Van Horn did say the economy was definitely a factor in the projections. He noted that for all of the industries IBISWorld covers – the company offers statistics, analysis and forecasts on 700 industries – the external business environment is taken into account when formulating projections. The current economy, specifically the consumer credit situation, will definitely impact the business.
“We see this year as the bottom year for the housing crisis,” said Van Horn, “but it will take a while for all that debt to work through.”
The report also projects that after two straight years of near double-digit growth, the ARM industry will cool a bit, growing at 3.9 percent in 2009 and then 5 percent in 2010.
IBISWorld also provides an in-depth snapshot of the industry in its debt collection report. According to their analysts, the industry is most highly-concentrated in the Southeast region of the country, with 23.1 percent of collection agencies located there. The report noted that “the spread of collection agencies is virtually identical to the geographical distribution of all business support services as well as the geographical spread of all administrative and support and waste management and remediation services in the US.”
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