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After taking a hit during the recession as consumers and companies cut nonessential spending, demand for business coaching is forecast to pick up. Consumers will update their skill sets to reenter the work force and companies will look to provide better training programs for their staff. Online courses will continue to grow in popularity, as providers look to them to save money and obtain a larger audience. For these reasons, industry research firm IBISWorld has updated a report on the Business Coaching industry in its growing industry report collection.
Los Angeles, CA (PRWEB) November 27, 2012
The Business Coaching industry experienced the effects of the recession, with revenue declining between 2007 and 2010. The industry relies largely on demand from its largest market, the middle and senior management of US corporations, which left it vulnerable to declining corporate profit. Businesses cut back on nonessential expenses, including employee business coaching programs, which reduced demand during the recession. Many classes are also focused on real estate and finance markets, which were significantly affected by the recession. “Despite this recent decline, a return to growth in 2011 and 2012 has mitigated declines during the past five years,” says IBISWorld industry analyst Kevin Boyland. IBISWorld estimates that revenue will decline at an average of 0.9% annually to $9.3 billion in the five years to 2012. This industry offers leadership and management training courses, including courses to update knowledge in particular areas, such as change management and information technology (IT) management. Prior to the recession, the industry benefited from growing acceptance of training seminars by large corporations and individuals. Businesses increased the use of training in response to globalization, and more individuals attended programs to learn about finance and real estate.
Unfortunately for industry operators, training budgets diminished during the recession, causing revenue to decline. The fall in demand, coupled with increased competition from similar industries, reduced profit margins during the recession. Small operators, which represent the majority of industry firms, were particularly hurt by declining demand, with some being forced to leave the industry as a result of the poor operating conditions. As a result, the number of industry enterprises is expected to decline at an average of 0.9% annually to 46,146 in the five years to 2012. In 2012, industry revenue is expected to increase 4.8% as corporate profit improves, and this trend is expected to continue over the next five years. While some companies will use internal resources for training, industry revenue is expected to increase in the five years to 2017. In the future, the adoption of online training is expected to boost the industry. According to Boyland, this alternative is a cheaper, more flexible option for customers and has lower operating costs for the training provider. Because of this characteristic, many firms can increase profit margins as a result of greater audiences and reduced costs.
In 2012, IBISWorld estimates that the four largest companies in the Business Coaching industry account for about 6.0% of industry revenue. As such, the Business Coaching industry is highly fragmented, with a large number of small enterprises operating throughout the United States. The vast majority of firms in this industry are nonemployers that service only their local area. It is estimated that nonemploying businesses represent about 91.1% of all firms operating in this industry. In spite of this, sole proprietors generate only 12.8% of industry revenue. Similarly, there are also a large number of firms that have a relatively small number of employees. About 75.7% of employing firms have fewer than five employees, while companies with fewer than 10 employees represent some 87.1% of all industry offices. This low level of concentration causes most competition to occur on a regional basis; however, larger organizations in this industry operate in more than one location. For more information, visit IBISWorld’s Business Coaching in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes firms that offer short courses and seminars for management and professional development. Training is provided through public courses or through employers' training programs, and the courses can be customized or modified. Instruction may be provided at the training facilities of the establishment or client, educational institutions, the workplace or the home.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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