The education and training services industry includes about 45,000 companies and 300,000 self-employed individuals with combined annual revenue of nearly $30 billion. Major companies include Kaplan; Career Education Corporation (CEC); ITT Technical Service; and Sylvan Learning. The industry is highly fragmented: depending on the segment, the 50 largest companies represent only 15 to 40 percent of total revenue.
Education and training services is a broad category that encompasses job-specific certification; professional training; and classes emphasizing self-fulfillment, leisure, and hobbies. Many of the industry’s programs, classes, and training services fall under the category of Career and Technical Education (CTE), historically known as vocational education, or "vo-tech.” High schools, community colleges, universities, and educational support services aren't included in this industry.
COMPETITIVE LANDSCAPE
Demand for certification classes is driven by employment trends in the medical, high technology, and manufacturing industries. Demand for classes emphasizing self-fulfillment is driven by personal income. The profitability of individual companies depends on maintaining low operating costs and recruiting enough students. 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 industry is highly labor-intensive: average annual revenue per worker is around $80,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include management development and training (16 percent of industry revenue); technical and trade schools (15 percent); and computer training (13 percent). Other services include fine arts schools, sports ...
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