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Education Industry Analysis in the USA. (College and Universities)

An overview about the education industry in the USA.

Photo of Diana Romero Delvasto
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Over the past five years, the Colleges and Universities industry has studied up and industry revenue was expected to reach $501.8 billion in 2015.

The industry struggled in the wake of the recession due to sharp declines in donation levels and negative investment returns. 

To mitigate the negative effects of falling government funding, many schools increased tuition and reduced the number of courses offered. Consequently, the rise in online learning platforms is unlikely to draw many students away from industry institutions. In fact, industry institutions are expected to further implement online education programs to lower costs and compete with community colleges and for-profit universities.

Additionally, by increasing the number of courses available online, universities will be able to reach new markets, including students living in remote areas, students in low-income households and older students that are in the workforce.

Government funding for universities is projected to increase as the economy recovers, and high school retention rates are forecast to slowly increase, which will increase college enrollment over the next five years.

High unemployment forced many people to go back to school to improve their chances of finding a job; consequently, the number of college students is expected to increase in the following five years.

With regards to international students, Universities and colleges will likely make education more accessible to international students by expanding their use of distance education technologies, developing links with other colleges across the world and improving their marketing efforts.

Source: IBIS World. 

What is a provocation or insight that might inspire others during this challenge?

First, we need to understand what is actually happening in the Education Industry of the USA, then, we would be able to come up with alternative solutions about affording tuition cost.

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Photo of Shane Zhao

Thanks for the post Diana! This is very helpful to see what's been driving the cost of higher ed over the past 5 years.