Colleges and Universities

The US colleges and universities industry includes about 4,300 degree-granting institutions with combined annual revenue of approximately $400 billion. Sixty percent of industry revenue is generated by state-operated public schools, 40 percent by private schools.

Some 1,700 schools are public, another 1,600 are private nonprofit institutions, and about 1,000 are for-profit private schools. Close to 75 percent of students are enrolled in public schools. Mainly because of big state universities, the industry is concentrated: 50 percent of all students are enrolled in the 400 largest schools. About 60 percent of students (including graduate students) are enrolled in four-year schools, 40 percent are in two-year (junior or community) colleges.

COMPETITIVE LANDSCAPE

Demand for higher education services is largely driven by population dynamics, but also by employer requirements. The financial success of schools is closely related to the number of students enrolled, because many costs are fixed. Public schools have the advantage of public funding and are typically larger than private schools. Small schools can compete effectively by providing a superior education.

PRODUCTS, OPERATIONS & TECHNOLOGY

Colleges and universities provide educational instruction leading to the granting of a degree that testifies to the student's competence. Many also provide room and board for students and a variety of other services. Some schools also operate hospitals and research facilities. About 18 million students are enrolled in colleges and universities, many on a part-time basis (nearly 40 percent of all undergraduates and 60 ...