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KN80021 KEY NOTE TRAINING NOVEMBER 2001

Editor: Emily Pattullo
ISBN: 1-84168-269-1

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This report covers: public sector training, work-based training for young people, WBTYP, Connexions Service, Work-based learning for adults, WBLA, Investors in People, IiP, Welfare to Work, Youth Cards, Advanced Modern Apprenticeships, Foundation Modern Apprenticeships, Private Sector training, Training Locations, on-the-job training, face-to-face training,coaching,mentoring,formal education, conferences, non-electronic open learning, CD-ROM, DVD, video, intranets, combuter based learning, CBT, internet, action learning, audio, extranets, accounting and finance, general management, human resources, personal development, information technology, outdoor training, presentation skills, project management, quality assurance, sales and marketing,

Companies covered include: BPP Holdings, Bureau Veritas Quality International, The Coverdale Organisation, Croner Training, Croner CCH Group, Det Norske Veritas, Euromoney Training, Euromoney Institutional Investor, Fielden-Cegos, Forum Europe, Franklin Covey Europe, Hawksmere, Hemsley Fraser Training, Huthwaite Research Group, Impact Development Training, Informatics CTEC, Informatics Investments, Invicta Training, John Matchett, Learning Tree International, Lloyd's Register Quality Assurance, Marcus Bohn Associates, Midland Group Training Services, NCC Education Services, PA Consulting Group, Parity Training, Pera Integrated Training, RRC Business Training, The Rapid Results College, RSM Marketing Improvements, Skillsgroup, Spring Group, Survive, TACK International, WTI, Brathay Development Training, BSI Business Solutions, Chartered Institue of Environmental Health, Chartered Institute of Marketing, Chartered Institute of Personnel and Development, Dove Nest Management training and Development, FT Knowledge, GBS Training, The Industrial Society, Knowledge Pool, The Leadership Trust (Training), Monadknock International, National Education Training Group, Oxford Publicity Partnership, Pitman training, Rievers of Tarset, Smallpeice Enterprises, Spearhead Training Group, Structured Training, Woodland Grange,Xansa,

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EXECUTIVE SUMMARY

This report looks at the UK training market. There are two sectors: public and private. The public sector covers the many government initiatives that have been put in place to improve the number of skilled people in the UK, especially among the young. Government expenditure on public-sector training for the year 2000/2001 is estimated to be between £3.5bn and £4bn. This report, however, focuses primarily on the private sector of the training industry. Key Note estimates the value of the private-sector training market to be £17.9bn in 2001.

Although the market remains relatively strong, expenditure per employee by private-sector companies fell slightly during 2001. Meanwhile, government statistics show that, between 1995 and 2000, the percentage of employees receiving training steadily increased. This is also likely to have been the case during 2001. The fall in the growth rate of the training market during 2001 is indicative of employers' greater concern about training costs. It also represents a slight move towards more in-house training, which tends to be cheaper than outsourced training.

The popularity of technology-based training, such as online learning, is lower than expected. Traditional classroom-based training, including team assignments, structured games and role playing, is still the favoured method of training. E-learning is gradually expanding but is used for more specific purposes.

In the public sector, the most important development was the launch of the Learning and Skills Council (LSC) in April 2001, which has replaced the Training and Enterprise Councils (TECs). The LSC will eventually be responsible for a large education-and-training budget, which will include the funding of further education. One of the aims of the LSC is to improve and increase the skills of young people entering the job market. This will have an impact on the employment market and should redress the problem of poor literacy and numeracy skills.

Employers are most interested in how to evaluate training, how to create 'blended' programmes of training (blending technology-based learning with classroom-based training) and how to tailor training to individual needs, which demands a better understanding of the process of training. For some employers, the creation of their own 'corporate university' is a prime priority.

Key Note forecasts that the training market will decline in value in 2002, and that the market's value will be static in 2003. Even before the attacks on the World Trade Center and the Pentagon in September 2001, there were growing doubts about the health of the global economy. Current international uncertainties make the likelihood of a recession a stronger possibility. If this does happen, it may be short-lived. Key Note forecasts a return to growth in 2004.

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TABLE OF CONTENTS

Executive Summary


1. Market Definition

REPORT COVERAGE
MARKET SECTORS
The Public Sector
Work-Based Training for Young People
Youth Cards
Advanced Modern Apprenticeships
Foundation Modern Apprenticeships
The Connexions Service
Work-Based Learning for Adults
Investors in People
Welfare to Work
The Private Sector
Training Delivery
Training Locations
MARKET TRENDS
The Public Sector
The Learning and Skills Council
Apprenticeships
Education and Skills
The Private Sector
MARKET POSITION
TRADE ASSOCIATIONS
The Campaign for Learning
National Training Organisations
The Learning and Skills Council
The University for Industry
UK Online
Learning Partnerships
The Connexions Service


2. Market Size

THE PUBLIC SECTOR
Table 1: Total Central and Local Government Spending on Education and Training in England in Cash Terms (£m), 1996/1997 to 2000/2001
THE PRIVATE SECTOR
Employer Expenditure on Training
Table 2: Employer Expenditure on Private-Sector Training (£bn), 1996-2000
Figure 1: Employer Expenditure on Private-Sector Training (£bn), 1996-2000
percentage of Employees Receiving Training
Table 3: Employees of Working Age Receiving Training (000 and percent of workforce), 1996-2001
By Region
Table 4: percentage of Employees of Working Age Receiving Job-Related Training by Region, 1998-2000
By Age
Table 5: percentage of Employees of Working Age Receiving Job-Related Training by Age, 1996-1999
Table 6: percentage of Employees of Working Age Receiving Job-Related Training by Age, 2000 and 2001
By Occupation
Table 7: percentage of Employees of Working Age Receiving Job-Related Training by Occupation, 1996-2001
By Economic Sector
Table 8: percentage of Employees of Working Age Receiving Job-Related Training by Sector, 2000 and 2001
Training Methods
Table 9: Training Methods Used ( percent of employers), 2001
Location of Training
Table 10: Location of Training by Employee Age Group ( percent of training), 2000


3. Industry Background

RECENT HISTORY
NUMBER OF PROVIDERS
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
HOW ROBUST IS THE MARKET?
LEGISLATION


4. Competitor Analysis

THE MARKETPLACE
Academic Institutions
Distance-Learning Providers
Independent Training Organisations
In-House Trainers
IT Companies
Management Consultancies
Professional Institutes
Sole Practitioners
SUBJECT LEADERS
Accountancy and Finance Training
General Management
Human-Resources Management/Personal Development
Information Technology
Outdoor Training
Presentation Skills
Project Management
Quality Assurance
Sales and Marketing
MARKET LEADERS
BPP Holdings PLC
Bureau Veritas Quality International Ltd
The Coverdale Organisation Ltd
Croner Training
Det Norske Veritas Ltd
Euromoney Training
Fielden-Cegos Ltd
Forum Europe Ltd
Franklin Covey Europe Ltd
Hawksmere PLC
Hemsley Fraser Training Group Ltd
Huthwaite Research Group Ltd
Impact Development Training Ltd
Informatics CTEC
Invicta Training Ltd
John Matchett Ltd
Learning Tree International Ltd
Lloyd’s Register Quality Assurance Ltd
Marcus Bohn Associates Ltd
Midland Group Training Services Ltd
NCC Education Services Ltd
PA Consulting Group
Parity Training Ltd
Pera Integrated Training Ltd
RRC Business Training
RSM Marketing Improvements Ltd
Skillsgroup Ltd
Spring Group PLC
Survive Ltd
TACK International Ltd
WTI
OTHER COMPANIES
Barleythorpe Training and Conference Centre
Brathay Development Training
BSI Business Solutions
The Chartered Institute of Environmental Health
The Chartered Institute of Marketing
The Chartered Institute of Personnel and Development
Dove Nest Management Training and Development Ltd
FT Knowledge
GBS Training Ltd
The Industrial Society
KnowledgePool Ltd
The Leadership Trust (Training) Ltd
Monadknock International
National Education Training Group Incorporated
The Oxford Publicity Partnership
Pitman Training
Rievers of Tarset
Smallpeice Enterprises Ltd
Spearhead Training Group Ltd
Structured Training Ltd
Woodland Grange
Xansa PLC


5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS


6. Buying Behaviour

INTRODUCTION
STRATEGIC ROLE OF TRAINING
TRAINING BUDGETS
Table 11: Annual Training Budget per Head (£ and percent of organisations), 2001
TRAINING MATERIALS
TECHNOLOGY
Table 13: The Results of Computer-Based Training ( percent of organisations), 2001


7. Current Issues

THE FINANCIAL BENEFITS OF TRAINING
E-LEARNING
CORPORATE UNIVERSITIES
EXTERNAL AND INTERNAL TRAINING
NON-EXECUTIVE TRAINING
THE FUTURE OF LEARNING FOR WORK


8. The Global Market

PARTICIPATION RATES IN TRAINING
EFFECTIVENESS OF TRAINING
Table 14: percentage of Organisations Monitoring the Effectiveness of Training ( percent), 2001


9. Forecasts

INTRODUCTION
FUTURE TRENDS
FORECASTS 2002 to 2006
Table 15: Forecast Employer Expenditure on Private-Sector Training (£bn and percent), 2002-2006


10. Company Profiles

BPP Holdings PLC
Croner CCH Group Ltd
Euromoney Institutional Investor PLC
Fielden-Cegos Ltd
Learning Tree International Ltd
Parity Training Ltd
Pera International
Spring Group PLC


11. Further Sources

Associations
Publications
Directories
General Sources
Bonnier Information Sources
Government Publications
Other Sources

Key Note Research

The Key Note Range of Reports

Text © 2001Key Note

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Last updated by Jacob van Eldik 26th November 2001