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. The industry has experienced mitigated growth over the five years to 2018, as 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 steady growth due to renewed government education funding...purchase to read more.

Industry Statistics & Market Size
Revenue
$67bn
Annual Growth 13-18
0.2%
Forecast Growth 18-23
Profit
Employment
683,250
Businesses
1,637
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry operations have been restricted by prolonged state budget deficits and shifting fiscal priorities
  • Community college tuition varies between states, but these fees are considerably lower on average
  • State and local government education appropriations are forecast to gradually increase
  • Industry Report - Industry SWOT Analysis Chapter

    The Community Colleges industry is in the mature stage of its economic life cycle. The industry's contribution to the overall US economy, as measured by industry value added, is projected to increase at an annualized rate of just 0.5% over the 10 years to 2023. Comparatively, US GDP is expected to grow at an annualized rate of 2.1% during the same period. While the contrast between these two growth rates generally indicates that an industry is in the midst of decline, the full market acceptance of industry services and the industry's modest rate of expansion indicate this industry's ongoing maturity.Community colleges play a critical role in US society, and therefore, demand for industry services is generally stable. As ...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's in this report

    What is the Community Colleges Industry?

    This industry includes public, private nonprofit and for-profit community colleges. These postsecondary educational institutions offer college transfer courses and programs, occupational programs and general educational programs. Community colleges generally confer associate degrees, certificates or diplomas below the baccalaureate level. This industry does not include trade and technical schools (IBISWorld report 61151) or business certification and IT schools (61144).

    Industry Products
  • Liberal arts and sciences associate degrees
  • Healthcare profession associate degrees
  • Business associate degrees
  • Other associate degrees
  • Certificates and non-degree programs
  • Computer and information sciences 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
  • Liberal arts and sciences associate degrees
  • Certificates and non-degree programs
  • Other associate degrees
  • Healthcare profession associate degrees
  • Business associate degrees
  • Protective services associate degrees
  • Computer and information sciences 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 under the age of 18
  • 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
    ProfitWagesRent and utilitiesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Community Colleges

  • Basis of Competition
    Internal competitionExternal 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Government funding for universities (2009-2023)

  • 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.
  • What Our Customers Say

    Why buy this report?

    The Community Colleges industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    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
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    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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