Overview

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

IBISWorld’s industry research report on Community Colleges contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

REPORT SNAPSHOT

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

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 Analysis & Industry Trends

    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.

    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 0.2% over the 10 years to 2022. 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

    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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 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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