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Training Market Report 2002
Key Note Publications Ltd, Nov 2002
This report examines the UK training market, which falls into two sectors: public and private. The public sector covers government initiatives from the Department for Education and Skills (DfES) and the new Department for Work and Pensions (DWP). Government expenditure on these initiatives for the year 2001/2002 is estimated to be £4.2bn. In addition, the Government is also funding the Learning and Skills Council (LSC), which received £7.3bn for the year 2002/2003. This report looks mainly at the private sector. We estimate that the value of private-sector training was £18.1bn in 2002.
The market is served by a large number of suppliers, which in addition to the training organisations, includes companies and institutions across a variety of sectors, whose main business is outside the training arena.
Employer spending on training has hardly increased during 2002. Anecdotal evidence suggests that the market has become more competitive than ever, with employers keen to cut the costs of training and the amount of time that it consumes. Training is still focused around the young and younger professionals. Older people are not well served by training.
E-learning continues to be a hot topic in the industry. It has not been taken up as quickly or enthusiastically as some expected. The main issues now are how to make e-learning work and how to integrate it with other kinds of learning, which will take some time. This report includes the key conclusions of a survey on e-learning from the Chartered Institute of Personnel and Development (Cipd), plus insights from the Cipd's Training Advisor, Martyn Sloman, who was inteviewed by us for this report.
In the public sector, the key development has been the setting up of the LSC, which has just completed its first year. The LSC now has responsibility for sixth-form education and further education colleges, in addition to the responsibilities that it inherited from the Training and Enterprise Councils (TECs). Another Government-funded initiative is the launch of the Sector Skills Councils (SSCs), which are replacing the National Training Organisations (NTOs). Institutionally, therefore, there is a lot of change in the training market.
Another major development has been the withdrawal from the training market of The Work Foundation, formerly known as The Industrial Society. The vast majority of its courses have been sold to The Capita Group PLC.
We forecast modest growth in this market to 2007, reflecting pressure on companies to reduce the time spent on training. A reduction in the volume of training will almost certainly have an impact on the value of the market.
Also available
Training Market Report 2003
Training Market Report 2004
Training Market Report 2006
Training Market Report 2007
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