A for effort: Revenue has risen despite reductions to the annual maximum fee movement

The Universities industry has performed modestly over the past five years. This is partially due to revenue growth constraints put in place by the New Zealand Government, which sets an annual maximum fee movement (AMFM) each year for tertiary education institutions. This constrains industry revenue growth. Prior to 2016, the AMFM was capped at 4.0%, meaning that universities could increase their course fees by up to 4% each year. However, the government reduced the AMFM to 3.0% in 2016, with a further reduction to 2.0% announced for 2017 due to persistent low inflation. Consequently, industry revenue is expected to increase at a lacklustre annualised 1.4% over the five years through 2017-18...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
1.4%
Forecast Growth 18-23
Profit
Employment
34,164
Businesses
8

Industry Threats & Opportunities

  • International student enrolments are anticipated to increase over the next five years
  • Industry Report - Industry Products Chapter

    Universities provide a range of educational services and accredited qualifications. The New Zealand Qualification Framework (NZQF), administered through the New Zealand Qualification Authority (NZQA), determines what individual qualification should convey to a holder. The NZQF is primarily responsible for quality assurance of tertiary education programs.Bachelor degree and other graduate qualificationsBachelor degrees, graduate certificates and graduate diplomas are level seven qualifications based on the NZQF. The...purchase to read more.

    Additional Insights for the Universities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Universities Industry are

  • Use of specialist equipment or facilities
  • Market research and understanding
  • Ability to raise revenue from additional sources
  • IBISWorld analysts also discuss how external factors such as Population aged between 18 and 25 and Public funding for tertiary education in the Universities industry impact industry performance..

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    What's in this report

    What is the Universities in New Zealand Industry?

    The industry includes accredited tertiary education providers that provide undergraduate and postgraduate teaching, as defined under the Education Act 1989.

    Industry Products
  • Bachelor's degree and other graduate qualifications
  • Other postgraduate qualifications
  • Master's and doctorate degrees
  • Certificates one-through-six
  • Research
  • Industry Activities
  • Postgraduate school operation
  • Research school operation
  • Undergraduate school operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population aged between 18 and 25
  • Public funding for tertiary education
  • Secondary school retention rate
  • Trade-weighted index

  • Current Performance
  • Annual fee movements
  • Student enrolments
  • Government funding
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Fees and enrolments
  • Workforce challenges
  • Funding dependence
  • Table: Universities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Universities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Scientific Research Services in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling in New Zealand
  • Newspaper and Book Retailing in New Zealand
  • Paper Product Wholesaling in New Zealand

  • Products & Services
  • Bachelor's degree and other graduate qualifications
  • Research
  • Master's and doctorate degrees
  • Other postgraduate qualifications
  • Certificates one-through-six
  • Chart: Universities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic students aged 18-25 years
  • Research
  • Domestic students aged over 25
  • International students
  • Chart: Major Market Segmentation for the Universities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Surplus
  • Wages
  • Depreciation
  • Purchases
  • Rent
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Universities

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Universities Industry

  • Industry Globalization
    University of Auckland, University of Otago, Massey University, Victoria University of Wellington, Auckland University of Technology, University of Canterbury,
  • Table: University of Auckland - financial performance
  • Table: University of Otago - financial performance
  • Table: Massey University - financial performance
  • Table: Victoria University of Wellington - financial performance
  • Table: Auckland University of Technology - financial performance
  • Table: University of Canterbury - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Universities 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 Universities Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Full-Time Equivalent
  • A measure that equates part-time students to full-time students. Full time students undertaking a full year of study are counted as one unit.
  • International Students
  • Students from overseas that travel to New Zealand for the purpose of study.
  • Student Allowance
  • Government grants that are designed to assist students from low-income backgrounds with living expenses while studying.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Universities in New Zealand 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:
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    • Identify threats and opportunities
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    This report on Universities 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 Universities 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 Universities 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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