Companies will invest in employee training again, bolstering industry demand
Los Angeles, CA (PRWEB) March 25, 2013
The Business Coaching industry experienced the effects of the recession, with revenue declining from 2007 to 2010. The industry largely relies on demand from its largest market, the middle and senior management of US corporations, which left it vulnerable to declining corporate profit, says 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 the recession significantly affected. Despite this decline, the industry has started its recovery, given a return to growth since 2011. IBISWorld estimates that revenue will increase an average of just 0.1% annually to $9.9 billion in the five years to 2013. 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 large corporations and individuals' growing acceptance of training seminars. Businesses increased their 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. 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 an average of 0.7% annually to 47,624 companies in the five years to 2013. The Business Coaching industry is highly fragmented, with a large number of small enterprises operating throughout the United States, says Culbert. The vast majority of firms are nonemployers that service only their local area. Similarly, there are also a large number of firms that have a relatively small number of employees. This low level of concentration causes most competition to occur on a regional basis; however, larger organizations operate in more than one location.
In 2013, industry revenue is expected to increase 4.2% as corporate profit improves, and this trend is expected to continue over the next five years, despite some companies choosing to use internal resources for training. 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.
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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 firm 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.