Tutoring and Driving Schools in The US Industry Market Research Report from IBISWorld Has Been Updated

Funding under the No Child Left Behind program and greater competition among high school students for college admission have boosted demand for tutoring and test preparation services, while colleges’ move away from mandatory tests (e.g. SAT and ACT) have slowed demand in the test preparation segment. For these reasons, industry research firm IBISWorld has updated a report on the Tutoring and Driving Schools industry in its growing industry report collection.

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Less funding and demand for test-prep services has limited revenue growth

Los Angeles, CA (PRWEB) July 04, 2013

Tutoring services drew national attention with the 2001 passage of the No Child Left Behind Act (NCLB). The legislation implemented a government-subsidized program to tutor students who attend schools that failed to make adequate progress under the NCLB accountability requirements. As such, “the tutoring market grew rapidly as companies scrambled to make their states' lists of approved education providers and capitalize on these government funds,” says IBISWorld industry analyst Sally Lerman. With the influx of new enterprises entering the market, however, competition has mounted in recent years, limiting revenue and profit growth. Consequently, revenue for the Tutoring and Driving Schools industry is anticipated to decrease an annualized 0.8% to $9.1 billion over the five years to 2013.

The test-preparation market provided a needed boost to the Tutoring and Driving Schools industry following the recession as well. With high unemployment and a tight job market, many people decided to return to school to improve their chances of work, boosting demand for this segment. “Historically high numbers of high school graduates have also created intense competition for college placement,” says Lerman, “so many students have enlisted the help of tutors to boost their chances of admission.” Despite an expanding customer base, heightened competition is expected to push revenue down 0.6% in 2013.

In addition to academic services, this industry also includes driving schools and other instructional services (e.g. first aid, self defense and speed reading). Unlike tutoring and test preparation, these courses are discretionary, making them sensitive to changes in disposable income. During the recession, enrollment in these discretionary courses declined significantly as households cut nonessential expenses.

Over the next five years, potential changes in NCLB funding will largely dictate industry performance. The NCLB program has received widespread criticism since its passage, with calls for more regulation of funding disbursement. Also in question is the ability of standardized tests to accurately forecast student success. More colleges are making the tests optional, which will likely stifle the test-preparation segment's growth during the period. Because of potentially lower NCLB funding and the diminished importance of standardized tests, the industry is projected to experience relatively weak growth. For more information, visit IBISWorld’s Tutoring and Driving Schools in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes exam-preparation and tutoring services, automobile driving schools and other varied education services. Academic schools, colleges and universities are excluded, as are schools offering instruction in business, management, computers, technical and trade areas, fine arts, athletics and languages.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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.


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    IBISWorld
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