Education & Training Services Industry Overview

Excerpt from Education & Training Services Report

The US education and training services industry includes about 50,000 companies and many more self-employed individuals with combined annual revenue of more than $35 billion. Major companies include Kaplan (a subsidiary of the Washington Post Company); Career Education Corporation (CEC); ITT Educational Services; and Sylvan Learning (part of Educate). The industry is fragmented: on average, the 50 largest companies represent 30 percent of total revenue.

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 about $70,000.

Products, Operations & Technology

Major services include technical and trade schools (nearly 40 percent of industry revenue) and business schools and computer training (20 percent). Other services include fine arts schools, sports and recreation instruction, exam preparation and tutoring, and driving schools.