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.
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
Jul 16, 2024 - Employment Growth Continues
- 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.
- Americans’ confidence in colleges and universities has hit an all-time low at 28%, according to a 2024 survey conducted by the Foundation for Individual Rights and Expression (FIRE) and NORC (previously the National Opinion Research Center) at the University of Chicago. Technical and trade school enrollment may increase if fewer people apply to colleges and universities. About 57% of Americans had a “great deal” of confidence in US colleges and universities in 2015, according to Gallup. That number decreased to 36% 2023.
- Enrollment at vocational-focused community colleges increased 61% in 2023, according to the National Student Clearinghouse (NSC). It was the highest growth since the NSC began tracking that figure in 2018. There was a 23% increase in students studying construction trades and a 7% increase in HVAC and vehicle maintenance and repair programs in 2023 compared to the year before. The trend reflects the increasing allure of high-paying technical jobs. Data from payroll services provider ADP shows that the median pay for new construction hires was $48,089 in 2023, compared to $39,520 for professional services new hires. The fastest-growing job in America today is a wind turbine service technician, who can make up to $103,000 without a college degree.
- Technical and trade schools are likely to benefit from ongoing reshoring of manufacturing and other business activity. Construction spurred by reshoring is coming from a wide array of industries including life sciences, hospitals, and technology, according to construction firm Sterling Infrastructure's Chief Executive Officer Joe Cutillo. American firms’ mentions of nearshoring, reshoring and onshoring — synonyms for moving manufacturing back or closer to a company’s home country — increased an average of 216% year over year since the start of 2022, data compiled by Bloomberg showed. Many experts say that the coronavirus pandemic revealed the fragility of the globalized supply chain, spurring companies to accelerate their nearshoring plans in earnest. Backlogged ports and high-profile shipping blockages in the all-important Suez and Panama canals illustrated the risks of relying on cheap production in Latin America and Asia, while advances in automation and rising freight costs have made it more economically attractive to move production back to the US.
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