You may be surprised...
As you wrap up the year and look at your business and all that you’ve accomplished, how did you do? What are the plans for the upcoming year? No, this isn’t another end of the year goal setting post, there are plenty of those out there. This is a did you know and are you aligned with the learning and development industry.
I was looking at the 2015 Training Magazine Industry Report. This reports has been produced for the 34 years and is a trusted 
source of data. The survey includes small (100-999 employees), medium (1000-9,999 employees) and large (10,000 or more employees) organizations across a wide variety of industries. I don’t want to go into all the specifics of the report as it has a lot of information but if you are interested, you can find the full report here.
Here is some of the data you should know as you plan for 2016.
Overall key points:
- Total training expenditures reached $70.6 Billion in 2015, up from $52.8 Billion in 2010
- Training staff payroll was $33.9 Billion in 2015, dropping from $42.4 Billion in 2014. However, it is up from $25.7 Billion in 2010. This is interesting, staff payroll went up every year from 2010 until 2015 when it dropped. (Hint: If you have an outsourcing company, congratulations!)
- Spending on training products and services is $8 Billion up from $6.9 Billion in 2010.
Average Budgets:
- Large organizations – $12.9 million
- Midsize – $1.4 million
- Small – $350,301
The top categories for spending in 2015
Each of these categories received over a 30% response:
- Authoring Tools and Systems
- Content Development
- Learning Management Systems
- Online Learning Tools and Systems
Each of these categories received over a 20% response:
- Assessment and Analysis testing
- Audio and Web Conferencing Products and Systems
- Business Skills
- Classroom Tools and Systems
- Consulting
- Games and Simulations
- Mobile Learning
- Support/On-Demand Learning Tools and Systems
- Presentation Software and Tools
Other Thoughts and Next Steps
There is a lot of additional information and breakdowns of the data in the report, but you get the picture. This is great news for the industry and should help in your planning. If you are an internal department manager or CLO you can see where you stand compared to other organizations. If you are an outside supplier or vendor, this should really help do an analysis on your who your clients are, the products and services you are offering them and your pricing compared to their budgets.
Some questions you should be asking to get clear on moving forward, What size organizations do I was as my clients? Where does their budget fall? Do I have a product or service that aligns with one of the top categories? And the big question, am I getting my share of an almost $71 Billion industry? What else can I do or offer to increase my market share? And finally, am I entrenched in the industry as an expert and positioned as a client’s first call? There is a lot of competition and you need a competitive edge. Hopefully, this will give a start on that.
Let me know what you think. Leave a comment below.
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If you need to increase revenue, breakthrough barriers, generate goals, identify team strategies and strengths, or establish accountability, contact David at The Hofstetter Group. We are a coaching and advisory company working with Learning and Organizational Development Companies and Leaders.
To learn more about David Hofstetter and The Hofstetter Group you can visit www.TheHofstetterGroup.com or on LinkedIn.
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