O-H…I-O! It’s that time of year again!
Jennifer Nietz - Manager of Operations
August 2013 – August! When August comes around in most parts of our land, you find that attitudes change towards the heat of the summer. August weather conversation in Ohio usually includes talks about the temperature cooling down and there is often excitement about the change in seasons and ….Game Day! As I think about August and the weather cooling down (I hope) I can’t help to think about my days at college. After a little reminiscing I thought I would take a look at the Higher Education Industry. Our client base serves colleges and universities in a number of ways from engineering support to signage manufacturing.
Let’s take a look at 2011. In 2011, this industry experienced a steep decline in government funding and was affected by higher interest rates of student loans. During this decline, universities implemented cost cutting measures and staffing changes. However, just as quickly as we saw the decline in funding we have experienced rapid growth from 2012-2013. There are a couple of factors that are currently positively impacting this market. Increased unemployment rates and larger high school graduation rates are increasing the demand for higher education. Lower interest rates for student loans taking effect this fall will allow more students to receive their education for less. Another area that is expected to help with the growth would be access to older students looking to enroll in online education courses that allow for flexible scheduling that previously wasn’t available in a traditional school setting.
The graph below represents the turnaround in government funding as well as the expected increase in high school graduation rates:
Currently the key selling industries, as indicated by IBISWorld, into this industry include: Book Publishing, Caterers, Computer Manufacturing, Janitorial Services, Office Stationary Wholesaling, and Computer Peripheral Manufacturing. Another area that we are currently seeing through our research at COACT is IT Infrastructure Solutions. Organizations that are looking to increase efficiency of information transfer and improve wireless connectivity are doing well in this market.
For additional information regarding the selection of strategic industries for your new growth initiatives please feel free to contact me at firstname.lastname@example.org.