Louisiana State University SystemBaton Rouge, LA, United States

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LSU System Competition

Now Viewing LSU System's competition in: Colleges and Universities (primary)

Recent Developments

Overbooking Freshmen - An increase in the number of college freshman is affecting many college campuses this fall. The number of high school graduates rose in 2008 and an increasing number of them are entering college. The University of Dayton had a 12 percent increase in its freshman class; the University of Missouri had a 16 percent increase; Marist College saw a 9 percent increase. Some colleges are hiring more staff or offering students gifts to live off campus to alleviate on-campus housing to deal with the increase.

Number of Graduates Steady - While college enrollments have risen over the past decade, the number of students graduating within five years has remained the same at about 52 percent, according to the College Board. Government policymakers increasingly look at graduation rates as an indicator of educational effectiveness, so the graduation numbers are of concern. With almost 25 percent of freshmen not returning for their sophomore year, many colleges are examining first-year students to determine why students leave and how to narrow the graduation gap.

Digital Textbooks may Not Be Cheaper - With the price of college textbooks rising to an average of between $700 and $1,000 per student per year, some students have turned to digital textbooks. But e-textbooks may not be cheaper if the student can't sell it back to the bookstore after use. According to a study at Portland State University and the City Colleges of Chicago, only a third of students are comfortable reading textbooks online and 75 percent say that they prefer a printed book to an electronic one. Another problem with online textbooks is that publishers sometimes set expiration dates on their use, which may not cover the entire academic year.

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.

Colleges and Universities Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures for higher education, a major driver for universities and colleges, are forecast to grow at an annual compounded rate of 6.1 percent between 2008 and 2013.

Consumer Spending Growth on Higher Education Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Demographics remain favorable
  • Fundraising skills required
  • Risk: Slow economy cuts public funding sources

Industries Where LSU System Competes

  • Education
    • Colleges & Universities (primary)
  • Foundations
  • Health Care
  • Leisure
  • Media