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Colleges & Universities

Colleges & Universities

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Executive summary

The Colleges and Universities industry includes public and private nonprofit colleges and universities that offer academic courses and grant baccalaureate or graduate degrees. Over the five years to 2022, strengthened job markets and better employment prospects hindered industry demand, causing high school graduates to enter the workforce and forgo postsecondary education. However, this trend reversed as the COVID-19 (coronavirus) struck, bolstering industry demand. Nonetheless, the shift to fully remote learning amid the pandemic somewhat hinders demand for colleges and universities, especially among private universities. This caused enrollment at private non-
profit universities to decline in 2020 and this trend has continued into 2022. Overall, industry revenue is estimated to fall at an annualized rate of 0.4% to $558.1 billion over the five years to 2022, including a projected decrease of
0.6% in 2022 alone.
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Each report includes:

industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

Reference Wordlist

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $ 1 of labor; medium is $ 0.125 to $ 0.333 of capital to $ 1 of labor; low is less than $ 0.125 of capital for every $ 1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

Colloquial Terminology

ENDOWMENT
The sum of money and other assets that have been donated to an institution. These funds are typically used in financial investments to yield additional income.

GENERAL EDUCATIONAL DEVELOPMENT (GED)
Tests that certify the taker has high school-level academic skills.

MASSIVE OPEN ONLINE COURSE (MOOC)
An online course aimed at unlimited participation and open access via the internet.

TITLE IV PROGRAMS
Programs authorized under Title IV of the Higher Education Act that are the major source of federal student aid.
They include loans, grants and federal work-study programs.

Details

According to Federal Student Aid, US student loan debt reached $ 1.8 trillion as of 2022. Therefore, a vibrant job market encourages those with financial constraints to avoid student loans by joining the workforce. Even though many universities have tried to grant financial aids and scholarships to more students, the number of qualified students only accounts for a minor share of total college students. Nevertheless, using data from the National Center for Education Statistics, IBISWorld anticipates that student enrollment at public and nonprofit universities has marginally increased over the past five years. Besides tuition fees, the majority of public and private nonprofit universities rely on state funding, private donations and endowments for revenue, helping them to maintain stable
profit.

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