Companies will invest in employee training again, bolstering industry demand.
Los Angeles, CA (PRWEB) August 13, 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 begun recovering. IBISWorld estimates that revenue will increase at an average rate of 0.1% annually to $9.9 billion in the five years to 2013.
The Business Coaching industry offers leadership and management training courses, including courses to enhance knowledge in particular areas, such as IT and change management. “Prior to the recession, the industry benefited from large corporations and individuals' growing acceptance of training seminars,” says Culbert. “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 other industries, including the Colleges and Universities industry (IBISWorld report 61131), 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 in response to poor operating conditions. As a result, the number of industry enterprises is expected to decline at an average rate of 0.7% annually to 47,624 companies in the five years to 2013. The industry is highly fragmented, with a large number of small enterprises operating throughout the United States, with the largest players being Franklin Covey, Center for Creative Leadership, and American Management Association. The vast majority of firms are nonemployers that service only their local area.
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. Although some companies will use internal resources for training, industry revenue is expected to increase in the five years to 2018. In the future, the adoption of online training is expected to bolster 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
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