NVI Technical College Information

Market Feasibility

Volatility

Unemployment has a mixed effect on vocational schools

What influences industry volatility?

• In times of economic woes, the unemployed often turn to trade

and technical schools to sharpen their skillset and make

Government funding strongly influences demand for

themselves more marketable to potential employers.

universities

• Government funding represents federal, state and local grants

• When unemployment rises, education and training become less

and appropriations for public and nonprofit private degree

urgent, as finding a job becomes the main priority for consumers

A

granting institutions.

with bills to pay. Still, rising unemployment boosts competition

for existing jobs and encourages those with the ability to enroll in

• Before the current period, cuts in funding resulted in a sharp

a trade school to do so.

decline in industry revenue as loans and financial aid became less

available to students and reduced their ability to attend a trade

• The mixed effect of unemployment reduces the volatility it elicits

or technical school.

on the industry's revenue, though a drop in unemployment can

still bring a net decline in revenue in a given year.

• In general, nonprofit institutions tend to be hit hardest by drops

in government funding as they rely almost entirely on the

government for income sources. For-profit universities are still

vulnerable to this shift, though, as they can receive up to 90.0%

of their revenue from government funding.

Source: Wert-Berater Feasibility Studies, LLC and IBISWorld

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