Learning difficulties: Industry revenue falls as student enrolment numbers continue declining

Operators in the Technical and Vocational Education and Training industry have endured multiple challenges over the past five years. Revenue derived from domestic student fees has declined over the period due to falling domestic enrolments. Falling enrolments have also reduced government funding linked to the number of students enrolled. The lack of funding has forced some industry operators to merge to remain viable. However, the depreciation of the New Zealand dollar over the past five years has boosted international student enrolments, supporting industry revenue. Industry revenue is expected to fall at an annualised 0.7% over the five years through 2018-19. This result is largely due to the annual maximum fee movements imposed by the government...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
-0.7%
Forecast Growth 19-24
Profit
Employment
4,626
Businesses
16

Industry Threats & Opportunities

  • Strong economic conditions have allowed people to obtain employment without tertiary education
  • Difficult conditions have forced some industry players to merge, reducing enterprise numbers
  • The fees-free study scheme is anticipated to increase demand from domestic students
  • Industry Report - Starting a New Business Chapter

    The Technical and Vocational Education and Training industry exhibits moderate barriers to entry. Following a series of mergers, market share concentration has grown strongly over the past five years, making it difficult for new entrants without an established reputation for delivering post-schooling education to gain new enrolments. As the Tertiary Education Commission prioritises funding for Crown tertiary education providers, it is extremely difficult for new private enterprises to source government funding for course provision. Over the past five years, the portion of public funds for education allocated to ITPs has declined, making it increasingly difficult for new entrants without a proven record in course delivery to secure government financing. Dev...purchase to read more.

    Additional Insights for the Technical and Vocational Education and Training Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Technical and Vocational Education and Training Industry are

  • Having contacts within key markets
  • Access to highly skilled workforce
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Public funding for tertiary education and Population aged between 15 and 45 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 in New Zealand Industry?

    Industry operators primarily provide technical and vocational education and training. The industry includes institutes of technology and polytechnics, as defined by the New Zealand Qualifications Authority. The industry excludes private and government training establishments that offer technical or vocational courses.

    Industry Products
  • Certificate level 1
  • Certificate level 2
  • Certificate level 3
  • Certificate level 4
  • Certificates and diplomas levels 5 to 7
  • Other qualifications
  • Industry Activities
  • Apprenticeship training program operation
  • Business college and school operation
  • Institute of technology operation
  • Technical and further education college operation
  • Vocational 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
  • Population aged between 15 and 45
  • National unemployment rate
  • Trade-weighted index

  • Current Performance
  • Qualification regulations
  • Student numbers
  • Fee restrictions
  • Consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Minimal fee increases
  • Enrolment trends
  • Funding reliance
  • 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 in New Zealand

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling in New Zealand
  • Internet Service Providers and Web Search Portals in New Zealand
  • Paper Product Wholesaling in New Zealand
  • Printing in New Zealand

  • Products & Services
  • Other qualifications
  • Certificate level 4
  • Certificates and diplomas levels 5 to 7
  • Certificate level 3
  • Certificate level 2
  • Certificate level 1
  • Chart: Technical and Vocational Education and Training Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic students aged 15 to 24
  • Domestic students aged 25 to 39
  • Domestic students aged 40 and over
  • International students
  • 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
  • Internal competition
  • External competition

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

  • Industry Globalization
    Unitec Institute of Technology, Ara Institute of Canterbury, Manukau Institute of Technology, Toi Ohomai Institute of Technology,
  • Table: Unitec Institute of Technology - financial performance
  • Table: Ara Institute of Canterbury - financial performance
  • Table: Manukau Institute of Technology - financial performance
  • Table: Toi Ohomai Institute of Technology - 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
    Industry Training Organisation (Ito)
  • These organisations coordinate structured training for employees, both on-job and off-job.
  • Institute Of Technology Or Polytechnics (Itp)
  • A government-owned education institution that delivers technical, vocational and professional education.
  • Private Training Establishment
  • A private organisation that provides education and training in specific areas.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Technical and Vocational Education and Training in New Zealand market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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
    • Quickly build competitive intelligence
    This report on Technical and Vocational Education and Training in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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