by Bob Berkman
May 22, 2024
Companies Must Cut Operating Costs While Still Investing in New Programs and Markets
A just published report by education market analyst firm Simba Information, PreK-12 Instructional Materials Industry Competitive Analysis, analyzes the market and financial health of the educational materials industry found a very positive 2023 and early 2024 for vendors in this industry, but this state of affairs may not last.
An index of education companies tracked by Simba found that education companies’ revenues were up an average of almost 7%; and that stock prices for six publicly tracked businesses grew an average of 43.74% in calendar year 2023. That growth continued into the first quarter of 2024.
However, Simba’s study also states that, for two major reasons, these gains are going to be difficult if not impossible to carry through beyond the second half of 2024. The first is the long-term decline in student enrollment; and the second is the drying up of ESSER pandemic funds provided to schools by the federal government, and potential reductions in state funding.
The challenge for the industry is that even as these trends present financial challenges it is also imperative that those in that companies in the sector continue to invest in new technologies—primarily AI and personalized learning systems—as these are driving new activity and purchases among schools. Education companies also will need to keep up with new offshore challengers who are introducing their own technology enabled PreK-12 learning products and features to get a foothold in the US market.
In addition to analyzing these financial factors, Simba’s PreK-12 Competitive Analysis 2024 report also examines larger industry and market trends and profiles the strategies and financials of leading companies. Key market trends reviewed include the growth in career and technical education (CTE) programs; interest in dual enrollment programs and products and growing political and parental pressure as another market force.
The following companies, all leaders in the PreK-12 educational materials market are fully profiled in this extensive competitive analysis: Boxlight; Cambium Learning; Cengage; Discovery Education; Goodheart-Wilcox; Houghton Mifflin Harcourt; Kahoot!; McGraw Hill; Pearson, PowerSchool; Renaissance Learning; Scholastic and Stride.
Also covered in this report are other financial forces and activity in this market, including the key mergers and acquisitions as well as data on private investment and the continued trend of public PreK-12 education companies going private.
About Simba Information
Simba Information is widely recognized as the authoritative source for market intelligence in the media and publishing industries. The company’s extensive information network delivers thoughtful, independent perspectives on the people, events and alliances shaping the industry. In addition, Simba Information assists clients and the press with analysis of publishing and media industry trends.
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