Fine Arts Schools

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 15,200 fine arts schools in the US provide instructional services in the arts, including dance, art, drama, and music. Fine arts schools include a broad range of educational providers, including art schools (except commercial and graphic arts), dance studios, drama and theater schools, and music schools. Degree-granting institutions are not considered fine arts schools. Most firms are small, independent organizations that operate within a local market.

Vulnerability To Economic Conditions

Demand for fine arts education is sensitive to economic conditions and typically drops during periods of financial uncertainty.

More Dancing

Demand for dance instruction has benefited from the popularity of dance-inspired TV shows and interest in dance as an alternative to exercise.

Industry size & Structure

The average fine arts school firm employs between 8-9 workers and generates $330,000 in annual revenue.

    • The fine arts education industry consists of about 15,200 firms that employ 126,000 workers and generate $5 billion annually.
    • The industry is highly fragmented; the top 50 companies account for 11% of industry revenue.
    • Degree-granting institutions are not considered fine arts schools. Most firms are small, independent organizations that operate within a local market.
    • Franchises are popular in the fine arts industry. Franchises offer pre-made curriculum and lesson plans to franchisees to ease the start-up process. Arthur Murray International and Fred Astaire Dance Studios are large dance studio franchises. The School of Rock music school franchise has over 280 locations.
                                    Industry Forecast
                                    Fine Arts Schools Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    May 19, 2024 - Moderate Sales Growth Expected
                                    • Fine arts school sales are forecast to increase at a 4.59% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Fine art school industry employment rebounded from early 2021 lows to moderately exceed pre-pandemic levels in late 2023, then decreased to pre-pandemic levels during the first quarter of 2024, according to the US Bureau of Labor Statistics.
                                    • Federal pandemic funding paid for an expansion of arts funding at schools across the US but the 2023-24 school year is the last full year in which districts can spend down what remains of the $180 billion in federal Covid-19 aid. Fine arts schools may benefit in the short term if families turn to them for fine arts education due to funding cuts for school-based arts education, but long-term demand may decrease if fewer young people are introduced to the arts at school. New York City’s public schools are currently using $41 million in federal stimulus for the arts, school officials said. That money, including $16 million that during the pandemic replaced a local tax levy, is about to expire. The New York City Education Department has not publicly released plans to save the programs.
                                    • Disposable personal income, an indicator of demand for fine arts training, increased 0.5% month over month in March 2024 while consumer spending increased 0.8%, according to the US Commerce Department's Bureau of Economic Analysis (BEA). Real disposable personal income, what Americans make after adjusting for inflation and taxes, was unchanged during the period. Consumer spending growth was 2.5% annualized in Q1 2024 (down from 3.3% in Q4 2023). Most of the quarterly strength came from spending on services.
                                    • Art is an important contributor to physical and mental well-being, according to Susan Magsamen, co-author of an upcoming book on the new field of neuroaesthetics, which studies the brain’s responses to art. There are some similarities to mindfulness and meditation, and to a flow state, Magsamen told The Washington Post. Part of what’s happening in those kinds of very focused spaces where you’re not thinking about 100 other things is that you’re letting your mind go, and that brings you to a stress-free state.
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