Industry Analysis & Industry Trends
Technical and trade schools have experienced fluctuations during the past five years, largely due to the recession and stagnant growth in federal funding. High unemployment has caused individuals to seek out further education, while employers are increasing their training requirements to remain competitive. Overall revenue and online enrollment growth has caused profit margins to remain relatively strong, and an increase in online enrollment will likely drive profit growth further... purchase to read more
Industry Report - Industry Investment Chapter
As with most industries in the education sector, the level of capital intensity for the industry is generally low. Accounting for 33.3% of industry revenue, wages represent the primary expense for most industry providers as most instructors are skilled and trained and most teaching is done on a face-to-face basis. This percentage includes wages for employees teaching classes, developing courses, and carrying out administrative and management duties.
The level of capital intensity varies considerably between segments of the industry. For example, flight training schools provide an exception to the rule of high labor intensity. These schools use expensive equipment in training, such as flight simulators, which increases the capital investment required by this segment... purchase to read more