Technical and Trade 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 7,200 technical and trade schools in the US offer vocational and technical training for a variety of subjects and trades, such as cosmetology, aviation, or heavy equipment operation. Companies typically prepare students for a particular type of job and often provide job-specific certification. Companies generate the majority of revenue through tuition and fees. Non-profit organizations may receive funding from contributions, gifts, and grants.
Dependence On Employment Rates
Demand for technical and trade school education is partially dependent on overall employment rates because workers often look to improve their skill set when unemployed.
Dependence On Government Funding
Technical and trade schools are highly dependent on student financial aid programs through federal (Title IV) and state programs.
Industry size & Structure
The average technical and trade school operates out of a single location, employs 16-17 workers, and generates $2 million annually.
- The technical and trade school industry consists of about 7,200 firms that employ 120,000 workers and generate $15.6 billion annually.
- The industry includes technical and trade schools, cosmetology and barber schools, flight training schools, and apprentice training.
- Cosmetology and barber schools account for 19% of firms and about 12% of industry revenue. Flight training schools account for 12% of firms and 25% of industry revenue. Apprenticeship training programs account about 16% of firms and 13% of revenue. A variety of trade and technical schools account for the remaining 53% of firms and 50% of revenue.
- The overall industry is somewhat concentrated; the top 50 companies account for 38% of industry revenue. The flight training school sector is concentrated; the top 50 companies account for 83% of revenue.
- Large companies include Lincoln Education Services, Fortis College, and Universal Technical Institute.
Industry Forecast
Technical and Trade Schools Industry Growth
Recent Developments
Jan 19, 2025 - Enrollment Increases
- The number of students enrolled in vocation-focused community colleges increased 16% from 2022 through 2023, according to the National Student Clearinghouse Research Center. Attending a four-year university is out of reach for many Americans. The average cost of higher education in the US has more than doubled in the 21st century to $38,270 per student per year, according to the Education Data Initiative.
- Trade occupations tend to have fewer layoffs than other industries, according to data from the Bureau of Labor Statistics. Those in a high-paying profession like tech or business are four times more likely to experience a layoff than those in building, manufacturing, and similar jobs. Trade and vocational programs vary widely in cost. The average tuition at two-year institutions ranges from $4,000 per year at public institutions to $19,500 at private ones, according to The National Center for Education Statistics.
- Hiring rates for workers in their 20s for roles that tend to require a bachelor’s degree decreased from 2019 to 2024 while hiring rates for roles requiring a vocational or associate’s degree increased, according to data from national payroll processing company ADP. “The promise of quicker entry into the workforce, lower educational costs and the ability to earn higher wages earlier in their careers are compelling reasons for this trend,” said Bart Taylor, a professor at Texas A&M University who teaches curriculum development for career and technical education programs. Earnings growth rates for workers with vocational or associate’s degrees are on par with those of bachelor’s degree recipients, according to the Atlanta Federal Reserve’s Wage Growth Tracker.
- Technical and trade school revenue increased significantly during the coronavirus pandemic, peaked during the second quarter of 2023, and has decreased slightly since. Technical and trade school industry employment has rebounded to pre-pandemic levels following a steep drop in 2020, according to the US Bureau of Labor Statistics. Technical and trade school revenue is forecast to increase at a 4.57% 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. Institutions generate the majority of revenue by charging tuition and fees for technical and trade educational programs. Schools may also receive contributions, gifts, or grants from public or private sources.
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