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Private Schools in the US - Industry Market Research Report

  • October 2016
  • 36 pages
  • Ibisworld
Report ID: 199133

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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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