IBISWorld Report Indicates Business Coaching Industry Experience a Return to Growth
After experiencing regular revenue decline between 2008 and 2010, as a result of the global recession and shrinking corporate profits, the business coaching industry has returned to growth and more than offset its losses over the past five years. Industry revenue is currently expected to continue experiencing significant growth through 2017 as the migration of its training services onto the Internet continues apace. Not only does the heavier reliance on web-based services lower costs for providers but also creates more flexible payment options for customers which make acquiring external coaching services more attracting than relying on internal training methods.
Broadly, the business coaching industry provider management training courses including specialized knowledge such as change and IT management. As training budgets shrank during the recession the industry’s primary market, middle and senior management areas of U.S. corporations, what had been an expanding sector began a several years decline. Industry analyst Kevin Culbert comments, “Small operators, which represent the majority of industry firms, were particularly hurt by declining demand, with some being forced to leave the industry as a result of the poor operating conditions.” The IBISWorld report estimates that revenue declined 0.9 percent annually over the five year period to 2012.
However, the report also predicts a reversal of fortune as industry revenue is expected to increase by nearly 5 percent in 2012, primarily due to increased corporate profit and more reliance on web-deliverable services. Quoting from the report, “Improved corporate profit and online classes will revive industry growth.”