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Colleges & Universities
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US colleges and universities industry includes about 4,400 degree-granting institutions with combined annual revenue of about $360 billion. About 80 percent of industry revenue is generated by state-operated public schools, 20 percent by private schools. Some 1,600 schools are public, and 2,800 are private. Close to 75 percent of students are enrolled in public schools. A majority of students (including graduate students) are enrolled in four-year schools; about 40 percent are in two-year (junior or community) colleges, which are covered in the Community Colleges industry profile.
About 30 percent of people of traditional college age worldwide are enrolled in a college or university, according to the World Bank. North America boasts the highest percentage of enrolled college-age students at 84 percent, followed by Europe and Central Asia (58 percent).
COMPETITIVE LANDSCAPE
Demand for higher education services is largely driven by population dynamics, but also by employer requirements. The financial success of schools is closely related to the number of students enrolled, because many costs are fixed. Public schools have the advantage of public funding and are typically larger than private schools. Small schools can compete effectively by providing a superior education. The industry is labor-intensive: average annual revenue per worker is about $90,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Colleges and universities provide educational instruction leading to the granting of a degree that testifies to the student's competence. Many also provide room and board for students and a variety of other...
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