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Higher education: Improving household income and school-choice credits will aid revenue



Abstract

Private Schools in the US

The Private Schools industry comprises independently funded primary and secondary educational institutions. As a result of decreasing enrollment and higher tuition, revenue is expected to remain relatively flat in in the five years to 2016. Mounting competition from charter schools and an unstable economy are largely the cause of this industry's slow growth. To compensate for lowered enrollment, private schools have opted to increase tuition; nevertheless, these tuition increases were barely enough to offset rising operating costs, tempering industry profitability. Uncertain household income levels also weigh on the industry because it is difficult for families to afford higher tuition costs during times of fiscal uncertainty. Vouchers and other school-choice initiatives have provided some financial aid to parents, but these programs were insufficient in stopping the plunge in industry enrollment. As a result, enrollment has consistently declined over the past five years. The industry is forecast to grow at the same rate over the next five years. Ultimately, as the economy continues to recover, household income levels are anticipated to increase, making it easier for families to afford private school tuition. Industry institutions are forecast to continue raising tuition to sustain revenue. Fortunately for the industry, enrollment will decline at a slower rate, resulting in more stable demand for private schools.

The Private Schools industry is composed of primary (kindergarten through sixth grade) and secondary (seventh through 12th grade) educational institutions that are predominantly funded through tuition fees and other private sources. Government or public agencies do not fund private schools; however, these schools may receive indirect assistance through certain programs or policies. Government-funded schools are included in the Public Schools industry (IBISWorld report 61111a).

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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Table Of Contents

Private Schools in the US - Industry Market Research Report

TABLE OF CONTENTS

ABOUT THIS INDUSTRY
Industry Definition
Main Activities
Similar Industries
Additional Resources

INDUSTRY AT A GLANCE

INDUSTRY PERFORMANCE
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

PRODUCTS and MARKETS
Supply Chain
Products and Services
Demand Determinants
Major Markets
International Trade
Business Locations

COMPETITIVE LANDSCAPE
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalization

MAJOR COMPANIES

OPERATING CONDITIONS
Capital Intensity
Technology and Systems
Revenue Volatility
Regulation and Policy
Industry Assistance

KEY STATISTICS
Industry Data
Annual Change
Key Ratios

JARGON and GLOSSARY

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