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 6,900 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 6,900 firms that employ 118,000 workers and generate $14 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 8, 2024 - Moderate Revenue Growth Expected
                                  • Technical and trade school revenue is forecast to increase at a 5.17% compounded annual rate from 2022 to 2027, 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. Industry employment has rebounded to pre-pandemic levels following a steep drop in 2020, according to the US Bureau of Labor Statistics.
                                  • The US is projected to face a shortage of 67,100 technicians throughout the semiconductor industry by 2032, according to a report from the Semiconductor Industry Association and Oxford Economics. The US might fail to achieve the full potential of the capacity growth, supply chain resiliency, and technology innovation leadership without action to address the talent gap, the report stated. “Expanding certification boot camps, apprenticeships and other training programs at community and technical colleges located near new and expanding semiconductor fabs would, therefore, be an effective means to help close the workforce gap for technicians. Curricula and education solutions tailored to the semiconductor industry will ensure students are prepared for future employment,” the report added.
                                  • There will be about 14,800 openings for technical education teachers annually for the next decade, according to the US Bureau of Labor Statistics. The openings will primarily be to replace retiring teachers or those leaving the profession. The Bureau also projects a need for 28,000 diesel technicians and mechanics annually over the decade.
                                  • 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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