Technical difficulties: Reduced government funding causes industry revenue to decline

Over the past five years, the Technical and Vocational Education industry has faced a number of challenges. Government cutbacks following the economic crisis led to a drop in training that was four times greater than any other European country, according to the Institute for Public Policy Research. However, the growing internet-based economy and the strong recovery of construction markets have created a serious shortage of skills within the UK workforce. This has resulted in a renewed focus on vocational training from the government and has fuelled demand for courses specialising in new skill sets.A number of policy changes have aided the industry’s more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Reduced public-sector funding for higher level education is expected to weigh on revenue
  • An increase in the number of apprenticeship starts has not been enough to counter falling industry revenue
  • Government initiatives to reduce the current skills gap are expected to support industry demand
  • Industry Report - Starting a New Business Chapter

    The industry currently has moderate barriers to entry, although these are expected to decline over the next five years. There is a high level of legislative regulation surrounding technical and vocational education that has been set out in laws such as the Education Act 2011, the Further and Higher Education Act 1992, and the Higher Education Act 2004. This is partially because many industry operators are funded by the government, so it is necessary to provide a high and uniform standard of education to all students to ensure that UK businesses have access to appropriately skilled workers. Additionally, industry players have to comply with a high level of health and safety regulation due to the hands-on nature of technical and vocational training. The...purchase to read more.

    Additional Insights for the Technical & Vocational Education Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Technical & Vocational Education Industry are

  • Qualified work force
  • Ability to vary services to suit different needs
  • Accessibility to consumers/users
  • IBISWorld analysts also discuss how external factors such as Participation of 16-18 year olds in full-time education and Demand from universities in the Technical & Vocational Education industry impact industry performance..

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    What's in this report

    What is the Technical & Vocational Education Industry?

    Operators in this industry provide courses and apprenticeships at post-secondary non-tertiary levels. These courses are typically offered through further education institutions, sixth-form colleges, secondary schools and other specialist colleges. Operators also work closely with individual employers to offer on-the-job traineeships. The industry does not include education for recreational purposes.

    Industry Products
  • Preparation for life and work courses
  • Health, public services and care courses
  • Arts, media and publishing courses
  • Language, literature and culture courses
  • Retail and commercial enterprise courses
  • Business administration, finance and law courses
  • Information and communication technology courses
  • Industry Activities
  • Providing vocational training
  • Providing apprenticeships
  • Teaching NVQ and BTEC qualifications
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Participation of 16-18 year olds in full-time education
  • Demand from universities
  • Population aged 16 to 25 years
  • Public-sector funding for higher level education
  • National unemployment rate

  • Current Performance
  • Skills shortage
  • Policy and legislation
  • Positive performance
  • Employment and enterprises
  • Chart: Revenue Growth

  • Industry Outlook
  • Government support
  • Education versus employment
  • Profit performance
  • Table: Technical & Vocational Education Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Technical & Vocational Education Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Book Publishing
  • Computer & Peripheral Equipment Wholesaling
  • General Building Cleaning
  • Paper Stationery Manufacturing

  • Products & Services
  • Preparation for life and work courses
  • Other
  • Health, public services and care courses
  • Arts, media and publishing courses
  • Language, literature and culture courses
  • Retail and commercial enterprise courses
  • Business administration, finance and law courses
  • Information and communication technology courses
  • Chart: Technical & Vocational Education Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students aged between 19 and 24
  • Students aged 18 and under
  • Students aged between 25 and 49
  • Students aged 50 and over
  • Chart: Major Market Segmentation for the Technical & Vocational Education Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Technical & Vocational Education

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Technical & Vocational Education Industry

  • Industry Globalization
    Learndirect Limited, Seetec Business Technology Centre Ltd,
  • Table: Learndirect Limited - financial performance
  • Table: Seetec Business Technology Centre Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Technical & Vocational Education Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Technical & Vocational Education Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blended Learning
  • A combination of both online and traditional face-to-face instruction.
  • Distance Education
  • Education delivered to students who are not physically present in a traditional classroom or campus.
  • National Vocational Qualification (Nvq)
  • Work-based awards awarded across the United Kingdom.
  • Technical Baccalaureate
  • Educational qualification awarded to students who take an approved technical level qualification, a Level 3 maths qualification or an extended project.
  • University Technical College
  • An educational institution for 14- to 19-year-olds that is partnered with a university, which helps direct the curriculum and support the students.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Technical & Vocational Education market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

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    This report on Technical & Vocational Education:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Technical & Vocational Education market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

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