Education and Training Services Industry Profile

The US education and training services industry includes about 45,000 companies and many more self-employed individuals with combined annual revenue of nearly $40 billion. Major companies include Kaplan; Career Education Corporation (CEC); ITT Educational Services; and Sylvan Learning (part of Educate). The industry is highly fragmented: on average, the 50 largest companies represent less than 30 percent of total revenue.

Education and training services is a broad category that encompasses job-specific certification; professional training; and classes emphasizing self-fulfillment, leisure, and hobbies. Many of the industry’s programs, classes, and training services fall under the category of career and technical education (CTE), historically known as vocational education, or "vo-tech.” High schools, community colleges, universities, and educational support services aren't included in this industry.

COMPETITIVE LANDSCAPE

Demand for certification classes is driven by employment trends in the medical, high technology, and manufacturing industries. Demand for classes emphasizing self-fulfillment is driven by personal income. The profitability of individual companies depends on maintaining low operating costs and recruiting enough students. Large companies have advantages in marketing and offering a wide range of classes and services. Small companies can compete effectively through personalized service and customized instruction. The industry is highly labor-intensive: average annual revenue per worker is around $80,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include technical and trade schools (30 percent of industry revenue) and business schools and computer training (25 percent). Other services include fine arts schools, sports and recreation instruction, ...