Class dismissed: External competition and declining government funding has stifled industry revenue growth

As an industry that relies on grants and appropriations from government agencies, the Community Colleges industry has suffered in recent years from prolonged government budget deficits that have constrained funding for higher education. Moreover, total enrollment in industry institutions has declined over the past five years as the rising cost of tuition has been compounded by steady improvements in the US labor market, which has encouraged many potential students to pursue full-time employment instead of paying for community college courses. Over the next five years, the industry is projected to return to growth due to renewed government education funding...read more.

Industry Statistics & Market Size
Revenue
$63bn
Annual Growth 12-17
-0.9%
Forecast Growth 17-22
Profit
Employment
656,885
Businesses
1,593
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Industry operations have been restricted by prolonged state budget deficits and shifting fiscal priorities
  • Industry institutions have been forced to make up for lost government revenue through higher tuition fees
  • Federal tuition assistance to students will boost demand for education services
  • Industry Report - Industry Investment Chapter

    The Community College industry has a moderate level of capital intensity. In general, industry services are labor intensive due to the substantial cost of attracting and retaining a well-qualified teaching staff. Community colleges also provide advising for careers and transfers to four-year institutions, resulting in a large number of counselors and support staff members. Additionally, industry capital costs are low because capital expenses are typically covered by local and state government appropriations. As a result, industry institutions typically spend just $0.13 on capital investments for every dollar spent on wages. This trend is consistent with the overall education sector of the economy. Ove...purchase to read more.

    Additional Insights for the Community Colleges Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Community Colleges Industry are

  • Accessibility to students
  • Ability to attract local support
  • Ability to educate the wider community
  • IBISWorld analysts also discuss how external factors such as Government funding for universities and Number of college students in the Community Colleges industry impact industry performance..

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    What is the Community Colleges Industry?

    Community colleges are postsecondary educational institutions offering college transfer courses and programs (including the first two years of college instruction); vocational, technical and semiprofessional occupational programs; and general educational programs. Community colleges confer associate degrees, certificates or diplomas below the baccalaureate level. This industry includes public, private nonprofit and for-profit community colleges.

    Industry Products
  • Liberal arts and sciences associate degrees
  • Healthcare profession associate degrees
  • Business management associate degrees
  • Other associate degrees
  • Certificates and non-degree programs
  • Computer and information sciences associate degrees
  • Engineering associate degrees
  • Protective services associate degrees
  • Industry Activities
  • Providing associate degree education
  • Providing technical and vocational certificate education
  • Preparing students for transfers to four-year colleges and universities
  • Providing continuing and adult education
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government funding for universities
  • Number of college students
  • High school retention rate
  • National unemployment rate

  • Current Performance
  • Limited funding government funding
  • Tuition hikes and enrollment declines
  • Online growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Government assistance grows
  • Rising demand for skilled professions
  • Online education continues to grow
  • Table: Community Colleges Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Community Colleges Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Healthcare and Social Assistance
  • Colleges & Universities
  • For-Profit Universities

  • Key Selling Industries
  • Book Publishing
  • Book, Magazine & Newspaper Wholesaling
  • Computer & Packaged Software Wholesaling
  • Computer Manufacturing
  • Janitorial Services
  • Municipal Building Construction
  • Office Stationery Wholesaling

  • Products & Services
  • Certificates and non-degree programs
  • Liberal arts and sciences associate degrees
  • Other associate degrees
  • Healthcare profession associate degrees
  • Business management associate degrees
  • Protective services associate degrees
  • Computer and information sciences associate degrees
  • Engineering associate degrees
  • Chart: Community Colleges Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students aged 18 to 21
  • Students aged 22 to 29
  • Students aged 30 and older
  • Students aged 17 and younger
  • Chart: Major Market Segmentation for the Community Colleges Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent and utilities
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Community Colleges

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Community Colleges Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Community Colleges Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Community Colleges Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Government funding for universities (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    High School Retention Rate
  • The percentage of 18- to 24-year-olds no longer enrolled in high school with a high school diploma or equivalent.
  • Online Education
  • A method of learning where student take courses off campus, such as via the internet.
  • Title Iv
  • A program authorized under Title IV of the Higher Education Act that is the major source of federal student aid. Programs include loans, grants and federal work study programs.
  • Why buy this report?

    IBISWorld’s Community Colleges Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Community Colleges:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Community Colleges market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Community Colleges, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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