Vocational Training Industry

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Vocational Training Industry

Key Takeaways

Introduction

In order to provide an understanding into the competitive landscape for vocational training, we've provided information and insights into the demand for vocational training globally, including a focus on enrollment in vocational trade schools, key players' competitive strategies, and collaborations or acquisitions in the vocational training market. We found the following insights and trends in the space; rapid growth in response to pandemic related business challenges, a shift in age and experience levels of students, industry partnerships driving tailored training alongside increased career opportunities, challenges in student retention, shifts in funding models, and increased demand for multi-channel and online training delivery.

Rapid Growth

Shifting Student Ages

  • Another trend in the vocational training space is that students are enrolling at both earlier and older ages than in the past, with an distinctive increase in enrollment amongst students who are later in their life.
  • In many global regions, older workers require new skills to keep up in the modern workforce, which has increased vocational training amongst those over 50.
  • Similarly, as the value of vocational training as a student pathway to reliable employment becomes more apparent, there has been an increase in enrollment of students between ages 15 to 19 in many regions.
  • Specific to the advancements in HVAC technology. HVAC training space, the increase in age of those seeking vocational training has increased alongside experience of those seeking training, as older techs seek to keep up with
  • Providing training to older, existing employees helps company owners working on a smaller training budget reduce the higher cost of hiring and training inexperienced or new technicians.

Industry Partners

Student Retention

  • Due to an increasing range skill training options both online and offline, addressing challenges in student retention is a trend in the vocational training space right now.
  • One source even calls student retention "the new battleground" in the vocational training space.
  • Because the cost of acquiring and training each learner is significant, vocational training providers are highly focused on avoiding losing students mid training program.
  • Key factors vocational training providers are focused on to improve student retention include gaining a richer understanding of student risk factors for program dropout, tracking external student circumstances such as financial challenges, and more rapid and attentive response to students at risk for dropping out of a vocational training program.

Shifts to Funding & Cost Models

  • Vocational training institutions and organizations have had to rethink their funding models in recent years.
  • The need to shift funding approaches for vocational training is related to revenue uncertainty due to challenges forecasting future skills, as well as increased competition in the space cutting into profit margins.
  • In order to avoid overinvesting in training programs, institutions have begun to redesign their infrastructure to incorporate more use of low cost technologies to minimize expense.
  • For example, online collaboration tools and virtual simulators have allowed vocation training programs to reduce costs of physical instruction.
  • Cost-sharing arrangements for instructional services have also been a funding model that has increased for vocational training in recent years.
  • New models for profitability by organizations offering vocational training are being created through more scalable programs, and diversified revenue streams.

Delivery Model

Research Strategy

For this research on the demand and competitive landscape for vocational training we leveraged the most reputable sources of information that were available in the public domain, including industry reports, business media sources, and market reports, focusing on information that would be the most relevant ofr trade schools offering HVAC, plumbing, and electrician training.

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