Contents:

Executive Summary 1. Market Definition report coverage MARKET SECTORS The Public Sector The Connexions Service Investors in People Welfare to Work Work-Based Learning for Adults Work-Based Learning for Young People The Private Sector Training Delivery Training Locations Market Trends The Public Sector The Private Sector Time and Cost Informal Training E-Learning Difficult Trading Conditions Economic Trends Gross Domestic Product Table 1: UK Gross Domestic Product at Current and Constant 1995 Prices (£m), 1998-2002 Inflation Table 2: UK Rate of Inflation (%), 1998-2002 Unemployment Table 3: Actual Number of Unemployed Persons (million and %), 1998-2002 MARKET POSITION The UK 2. Market Size The Public Sector Table 4: Total Central and Local Government Spending on Education and Training in England (£m), 1998/1999 to 2002/2003 the private sector Employer Expenditure on Training Table 5: Employer Expenditure on Training (£bn), 1999-2003 Number of Employees Receiving Training Table 6: Employees of Working Age Receiving Training (000 and %), 1999-2003 By Region Table 7: Employees of Working Age Receiving Job-Related Training by Region (%), 1998-2002 By Age Table 8: Employees of Working Age Receiving Job-Related Training by Age (%), 1998 and 1999 Table 9: Employees of Working Age Receiving Job-Related Training by Age (%), 2000-2003 By Occupation Table 10: Employees of Working Age Receiving Job-Related Training by Occupation (%), 1999-2003 By Sector Table 11: Percentage of Employees of Working Age Receiving Job-Related Training by Sector (%), 2000-2003 Location of Training Table 12: Location of Training (% of training), 2001-2003 By Age Table 13: Location of Training by Age (% of training), 2002 3. Industry Background RECENT HISTORY NUMBER OF PROVIDERS Table 14: Number of VAT-Based Enterprises Engaged in Training by Turnover Sizeband (£000), 2003 EMPLOYMENT Table 15: Number of VAT-Based Local Units Engaged in Training by Number of Employees, 2003 REGIONAL variations in the marketplace DISTRIBUTION how robust is the market? LEGISLATION key trade associations The Campaign for Learning The Chartered Institute of Personnel and Development The Learning and Skills Council The Sector Skills Councils UK online The University for Industry 4. Competitor Analysis THE MARKETPLACE Market Sectors Accountancy and Finance Training General Management Human Resources Management/Personal Development Information Technology Outdoor Training Presentation Skills Project Management Quality Assurance Sales and Marketing MARKET LEADERS Azlan PLC Company Structure Financial Results Barleythorpe Training and Conference Centre Company Structure Financial Results BPP Holdings PLC Company Structure Financial Results Brathay Development Training Company Structure Financial Results BSI Business Solutions Ltd Company Structure Financial Results Bureau Veritas Quality International Ltd Company Structure Financial Results The Capita Group PLC Company Structure Financial Results The Chartered Institute of Environmental Health Company Structure Financial Results The Chartered Institute of Marketing Company Structure Financial Results The Chartered Institute of Personnel and Development Company Structure Financial Results The Coverdale Organisation Ltd Company Structure Financial Results Croner.CCH Group Ltd Company Structure Financial Results Det Norske Veritas Ltd Company Structure Financial Results Dove Nest Management Training and Development Ltd Company Structure Financial Results Euromoney Institutional Investor PLC Company Structure Financial Results Fielden-Cegos Ltd Company Structure Financial Results Franklin Covey Europe Ltd Company Structure Financial Results FT Knowledge Ltd Company Structure Financial Results GBS Training Ltd Company Structure Financial Results Hawksmere PLC Company Structure Financial Results Hemsley Fraser Training Group Ltd Company Structure Financial Results Huthwaite Research Group Ltd Company Structure Financial Results Impact Development Training Ltd Company Structure Financial Results Informatics CTEC Company Structure Financial Results Invicta Training Ltd Company Structure Financial Results John Matchett Ltd Company Structure Financial Results KnowledgePool Ltd Company Structure Financial Results The Leadership Trust (Training) Ltd Company Structure Financial Results Learning Tree International Ltd Company Structure Financial Results Lloyd's Register Quality Assurance Ltd Company Structure Financial Results Marcus Bohn Associates Ltd Company Structure Financial Results Midland Group Training Services Ltd Company Structure Financial Results Monadknock International Company Structure Financial Results National Education Training Group Incorporated Company Structure Financial Results NCC Education Services Ltd Company Structure Financial Results The Oxford Publicity Partnership Company Structure Financial Results Parity Training Ltd Company Structure Financial Results Pera Integrated Training Company Structure Financial Results Pitman Training Group PLC Company Structure Financial Results QA PLC Company Structure Financial Results Rievers of Tarset Company Structure Financial Results RRC Business Training Company Structure Financial Results RSM Marketing Improvements Ltd Company Structure Financial Results Smallpeice Enterprises Ltd Company Structure Financial Results Spearhead Training Group Ltd Company Structure Financial Results Spring Group PLC Company Structure Financial Results Steps Company Structure Financial Results Structured Training Ltd Company Structure Financial Results Survive Ltd Company Structure Financial Results TACK International Ltd Company Structure Financial Results Woodland Grange (Stafford) Management Company Ltd Company Structure Financial Results WTI Training Group Company Structure Financial Results Xansa PLC Company Structure Financial Results Outside Suppliers 5. Strengths, Weaknesses, Opportunities and Threats STRENGTHS WEAKNESSES OPPORTUNITIES THREATS 6. Buying Behaviour INTRODUCTION FORMS OF TRAINING Table 16: Training Methods Used in Organisations (% of respondents), 2003 MANAGERIAL INFLUENCES Table 17: Drivers of Training (%), 2003 E-LEARNING Table 18: Types of Staff for Whom E-Learning Accounts for 10% or More of Training Time† (% of establishments), 2002 and 2003 TRAINING IN THE CONTEXT OF DIVERSITY Table 19: Kinds of Workplace Diversity Training (% of respondents†), 2003 EVALUATION Table 20: Proportion of Training Programmes that Finish with a Written Statement of the Trainees' Intention Following Training (% of respondents), 2003 THE BUSINESS CASE FOR TRAINING Table 21: Issues Considered Important When Making the Business Case for Training (% of respondents), 2003 7. Current Issues THE SKILLS DEBATE CHANGES AT THE LSC E-LEARNING THINKING ABOUT OUTSOURCING 8. The Global Market 9. Forecasts INTRODUCTION ECONOMIC FORECASTS Table 22: Government Economic Forecasts (000, % and million), 2003-2007 forecasts 2004 to 2008 Table 23: Forecast Employer Expenditure on Training by Value (£bn), 2004-2008 Future Trends From Training to Learning Flexibility and Informality 10. Company Profiles Bpp Holdings Plc Fielden-cegos Ltd Impact Development Training Ltd Learning Tree International Ltd Parity Training Ltd Qa Plc Spring Group Plc Xansa Plc 11. Further Sources Associations Publications Bonnier Information Sources Government Publications Other Sources

Summary:

This market report examines the UK training market, which can be divided into the private and public sectors. It is estimated that private-sector spending on training was £17.37bn in 2003, a decrease of 1.5% on 2002. This represents a drop in spending for the second year running and although expenditure has not significantly declined, it has been enough to start sending tremors through the industry. In the public sector, it is estimated that expenditure on training initiatives was £11.3bn in the financial year 2002/2003. The training market is becoming a much more difficult one. Profitability appears to be declining and clients are cautious about how much time they allow their employees to attend training courses. In-house training appears to be growing, which has been partly aided by the growth in e-learning and corporate intranet learning programmes. Significant barriers to market growth are the lack of client time and money, and the prevailing trend for small and medium-sized enterprises (SMEs) to take training seriously. In addition, training remains largely geared towards those aged around 35 or younger; there is a lot of training effort installed for those in their 20s and early 30s, although commitment to training is reduced for older employees — those who receive training over the age of 50 are considered lucky. However, training does appear to be gaining more acceptance. A number of interviews were conducted of training specialists and Martyn Sloman — training advisor at the Chartered Institute of Personnel and Development (CIPD) — commented that the case for training seems to have been accepted and the next challenge is to follow this acceptance through. Sloman, who has experience practising as a trainer in major organisations, co-authored Training in the Age of the Learner and in it, he outlines the need for training to be more learner-focused than it often is today. In the public sector, the emphasis is on the need to develop the right skills for UK industry. Essentially, the Learning and Skills Council (LSC) will be responsible for this over the next 5 years. In July 2003, the White Paper on Skills Strategy, which is a focal point for national policy, was published and this is going to be the subject of debate throughout 2004. Extremely slow growth is expected in employer expenditure on training between 2003 and 2008, as a result of slow economic growth in 2004 and 2005, and employers becoming increasingly cautious about spending money on training.