Improved corporate profit and online classes will revive industry growth
Los Angeles, CA (PRWEB) March 26, 2012
The Business Coaching industry experienced the effects of the recession, with revenue declining between 2008 and 2010. The industry relies largely on demand from its largest market, the middle and senior management of US corporations, which left it vulnerable to declining corporate profit. Businesses cut back on nonessential expenses, including employee business coaching programs, which reduced demand during the recession. According to industry analyst Kevin Culbert, “Many classes are also focused on real estate and finance markets, which were significantly affected by the recession.” Despite this recent decline, a return to growth in 2011 and 2012 has mitigated declines during the past five years. IBISWorld estimates that revenue will decline at an average of 0.9% annually to $9.3 billion in the five years to 2012.
The Business Coaching industry offers leadership and management training courses, including courses to update knowledge in particular areas, such as change management and information technology (IT) management. While the industry is highly fragmented, the Washington Post Company is the largest player; it operates in the industry through its Kaplan subsidiary. Prior to the recession, the industry benefited from growing acceptance of training seminars by large corporations and individuals. Businesses increased the use of training in response to globalization, and more individuals attended programs to learn about finance and real estate. Unfortunately for industry operators, training budgets diminished during the recession, causing revenue to decline. Culbert says, “Small operators, which represent the majority of industry firms, were particularly hurt by declining demand, with some being forced to leave the industry as a result of the poor operating conditions.” As a result, the number of industry enterprises is expected to decline at an average of 1.0% annually to 46,146 in the five years to 2012.
In 2012, industry revenue is expected to increase 4.8% as corporate profit improves, and this trend is expected to continue over the next five years. While some companies will use internal resources for training, industry revenue is expected to grow over the five years to 2017. In the future, the adoption of online training is expected to boost the industry. This alternative is a cheaper, more flexible option for customers and offers lower operating costs for the training provider.
For more information visit IBISWorld’s Business Coaching in the US industry page
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
This industry includes firms that offer short courses and seminars for management and professional development. Training is provided through public courses or through employers' training programs, and the courses can be customized or modified. Instruction may be provided at the training facilities of the establishment or client, educational institutions, the workplace or the home.
IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.