Colleges & Universities Industry Overview

Excerpt from Colleges & Universities Report

Institutions in this industry offer academic and professional courses and confer degrees. Major institutions include public university systems in states such as California and New York and private universities such as Harvard and Stanford.

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. The industry is labor-intensive: average annual revenue per worker is about $90,000.

Products, Operations & Technology

About 60 percent of industry revenue is generated by state-operated public schools, 35 percent by private schools, and 5 percent by for-profit operators. Some 1,600 schools are public, and 2,900 are private (not-for-profit and for-profit). Close to 70 percent of students are enrolled in public schools. A majority of students (including graduate students) are enrolled in four-year schools; about 40 percent are in two-year (junior or community) colleges.