Brain drain: Changes to government funding arrangements have negatively affected revenue

Regulations in the Technical and Vocational Education and Training industry are constantly changing. Student numbers and industry revenue surged with the implementation of the VET FEE-HELP scheme in 2009 and the National Partnership Agreement in 2012. The increase in government funding reduced the financial barrier for students seeking to access vocational education and increased the number of private vocational education providers entering the market. However, course quality concerns and budgetary constraints led to changes to funding for the industry, including the VET Student Loans scheme implemented in January 2017. Industry revenue is expected to fall at an annualised 2.8% over the five years through 2018-19, to $9.0 billion. This includes an anticipated rise of 2.1%...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 14-19
-2.8%
Forecast Growth 19-24
Profit
Employment
68,664
Businesses
4,175

Industry Threats & Opportunities

  • Course quality concerns and budgetary constraints have affected industry funding arrangements
  • The introduction of the VET FEE-HELP scheme led to a spike in student enrolments
  • A competitive job market is forecast to encourage people to enrol in tertiary education
  • Industry Report - Industry SWOT Analysis Chapter

    The Technical and Vocational Education and Training industry is in the mature stage of its life cycle. Industry value added (IVA) is forecast to contract at an annualised 0.3% over the 10 years through 2023-24. IVA is a measure of an industry's contribution to the overall economy. Real GDP is anticipated to grow at an annualised 2.7% over the same 10-year period. As a result, the industry is expected to underperform the wider economy. However, as government funding provides a significant portion of industry revenue, this underperformance reflects changes in government policy more than industry performance...purchase to read more.

    Additional Insights for the Technical and Vocational Education and Training Industry

    IBISWorld has determined the most important Key Success Factors for the Technical and Vocational Education and Training are:

  • Must comply with government regulations
  • Production of goods currently favoured by the market
  • Company's product is user/consumer friendly
  • IBISWorld analysts also discuss how external factors such as Public funding for tertiary education and Number of vocational students in the Technical and Vocational Education and Training industry impact industry performance..

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    What's in this report

    What is the Technical and Vocational Education and Training Industry?

    The industry offers technical and vocational education and training that is delivered by registered training organisations (RTOs). RTOs include TAFE institutes, dual-sector institutions and other private and community providers.

    Industry Products
  • Diploma and above
  • Certificate IV
  • Certificate III
  • Certificate II
  • Certificate I
  • Other courses and programs
  • Industry Activities
  • Apprenticeship training program operation
  • Business college and school operation
  • Information technology training centre operation
  • Institute of technology operation
  • Professional and management development training
  • Secretarial training
  • Technical and further education college operation
  • Technical college operation
  • Vocational computer training
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Public funding for tertiary education
  • Number of vocational students
  • Trade-weighted index
  • National unemployment rate

  • Current Performance
  • Government funding and reform
  • Private providers
  • Student enrolments
  • Chart: Revenue Growth

  • Industry Outlook
  • Private providers
  • Government funding and reforms
  • Student enrolments
  • Table: Technical and Vocational Education and Training Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Technical and Vocational Education and Training Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Book and Magazine Wholesaling
  • Central Government Administration
  • Computer and Computer Peripheral Wholesaling
  • Paper Product Wholesaling
  • Printing
  • State Government Administration
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Certificate III
  • Other courses and programs
  • Diploma and above
  • Certificate II
  • Certificate IV
  • Certificate I
  • Chart: Technical and Vocational Education and Training Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Students aged between 25 and 44
  • Students aged 45 and over
  • Students aged between 15 and 24
  • Chart: Major Market Segmentation for the Technical and Vocational Education and Training Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Technical and Vocational Education and Training

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Technical and Vocational Education and Training Industry

  • Industry Globalization
    Department of Education and Training Victoria, Technical and Further Education Commission, TAFE Queensland,
  • Table: Department of Education and Training Victoria - financial performance
  • Table: Technical and Further Education Commission - financial performance
  • Table: TAFE Queensland - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Technical and Vocational Education and Training Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Technical and Vocational Education and Training Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Australian Qualifications Framework (Aqf)
  • The Australian Qualifications Framework is the national policy that underpins the system of regulated qualifications for schools, vocational education and training and higher education in Australia.
  • National Centre For Vocational Education Research
  • Compiles statistics and researches the vocational education market.
  • Tafe
  • Technical and Further Education. This can refer to courses or the institutions that provide them.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Technical and Vocational Education and Training market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Technical and Vocational Education and Training:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Technical and Vocational Education and Training market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Technical and Vocational Education and Training, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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