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The general outlook for the higher education sector has been negative for a number of years, according to Moody’s industry reports for the past several years. Nonetheless, for selected revenue streams, the first half of 2018 experienced better growth than was expected. For the industry as a whole, this optimistic news is due in part, at least, to the following factors:
Although the above is good news for higher education, a comprehensive challenging business environment lies ahead for the industry sector at large. Some key realities of higher education, from a revenue perspective, are as follows:
In this harsh higher education environment, it’s imperative institutions do their best to diversify revenue streams and develop metrics and other tools to measure and implement proactive strategies for today’s modernization. There’s a reason why the 2017 Inside Higher Education Survey of College and University Business Officers showed that 71 percent of chief business officers believe higher education is in the midst of a financial crisis. Maneuvering these challenging times requires careful planning, review of the existing model, and developing or modifying strategic plans to respond to an evolving market.
If your institution would like assistance in navigating your industry sector’s business conditions, we invite you to contact us and visit the Schneider Downs Educational Services Industry Group. For additional information, visit the Our Thoughts On blogsite.
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