Companies will invest in employee training again, bolstering industry demand
Los Angeles, CA (PRWEB) August 13, 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. According to IBISWorld industry analyst Kevin Culbert, businesses cut back on nonessential expenses, including employee business coaching programs, which reduced demand during the recession. 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. This industry offers leadership and management training courses, including courses to update knowledge in particular areas, such as change management and information technology (IT) management. 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. The fall in demand, coupled with increased competition from similar industries, reduced profit margins during the recession, says Culbert. 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. The Business Coaching industry is highly fragmented, with a large number of small enterprises operating throughout the United States. The vast majority of firms in this industry are nonemployers that service only their local area. This low level of concentration causes most competition to occur on a regional basis; however, larger organizations in this industry operate in more than one location.
In 2012, industry revenue is expected to increase 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 increase in 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 has lower operating costs for the training provider. Because of this characteristic, many firms can increase profit margins as a result of greater audiences and reduced costs. For more information, visit IBISWorld’s Business Coaching in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
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.
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.