Education & Training Services
Companies in this industry include business and secretarial schools; technical and trade schools; and providers of tutoring, exam preparation, and other instruction. Major companies include Adtalem Global Education, Apollo Education Group, Career Education Corporation (CEC), K12, and Kaplan (all based in the US); as well as New Oriental Education & Technology Group (China), NIIT Limited (India), and Benesse Corporation (Japan).
Global education and training services companies are increasingly looking to emerging economies for new growth opportunities. Developing nations such as China and India often rely on education and training services to help support economic growth.
The US education and training services industry includes about 67,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $43 billion.
Companies in this industry may offer job-specific certification; professional training; and classes emphasizing self-fulfillment, leisure, and hobbies. Many of the industry's services fall under the category of career and technical education (CTE). High schools, community colleges, universities, and educational support services are not included in this industry.
The education and training services industry is in a transitional phase, as tighter government regulation of for-profit career schools has forced several institutions to close in recent years. At the same time, other career and technical education providers have benefited from growing support for vocational training from high schools, businesses, and government grant programs.
Advancements in education technology are also transforming the industry. Companies are improving their online course offerings with features that make distance learning more accessible and interactive. However, there are also a growing number of consumer products that make it easier to learn at home. For example, mobile applications like Duolingo and Rosetta Stone allow users to learn foreign languages at their own pace without enrolling in a formal program. Education and training service companies compete with traditional community colleges and four-year bachelor's degree programs. The industry also loses business when prospective students choose to enter the workforce directly without pursuing specialized vocational training.
Large companies have advantages in marketing and offering a wide range of classes and services. Small companies can compete effectively through personalized service and customized instruction. The US industry is highly fragmented: the 50 largest companies account for about 25% of revenue.
Meeting Job Market Demand — Trade and technology schools continually update their course offerings and curriculums to align with regional hiring trends. Providers that offer certificates for medical assistants and health information technology professionals, for example, are benefiting from rising demand for workers in those fields.
Instructional Technology — Education and training companies can increase enrollment by offering online courses with a range of modern education technology tools. Some providers offer blended classes that incorporate both online and classroom instruction. Companies regularly update software and features to maintain a high-quality experience for students.
School and Business Partnerships — Education and training providers are partnering with high schools, community colleges, and private employers to create programs that help students develop skills that prepare them to enter the workforce. Some technology and manufacturing firms offer scholarships and instructional support for programs that provide advanced training in their fields.
Regulatory Compliance — For-profit career schools with high job placement rates and good track records of minimizing student debt have avoided government penalties that have forced many of their competitors to shut down. Certificate-granting programs in particular are heavily regulated by the federal government and risk losing accreditation if they do not meet specified benchmarks.
Companies to Watch:
Apollo Education Group provides educational programs through a number of subsidiaries, including the University of Phoenix, which accounts for about 80% of the company's sales. Apollo offers a wide range of certificate and degree programs in the US, the UK, South Africa, and other countries.
Career Education Corporation (CEC) is a for-profit provider of education and training in areas including information technology, health education, business studies, culinary arts, and visual communication and design. The group's operating names include Colorado Technical University, Sanford-Brown Institutes, Le Cordon Bleu, and American InterContinental University.
Kaplan, owned by Graham Holdings, is best known for courses and publications that prepare students for exams such as the SAT, GRE, LSAT, and MCAT.
Benesse Corporation is the Japan-based owner of language training provider Berlitz International, which owns and franchises more than 500 language centers in 70 countries. Berlitz also serves schools, military, and government clientele, and it offers study-abroad and cultural-awareness training and online programs for all ages.
Products, Operations & Technology
Major services include technical and trade schools (about 25% of industry revenue) and business schools and computer training (also about 25%). Technical
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms