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Supplemental Content, Assessment, Tutoring And Test Prep Drive Spending in K-12 Education Market

(PRWEB) April 4, 2006 -- This year, the Assessment, Tutoring and Test Preparation Services, and Supplemental Content markets saw the most dramatic revenue acceleration in response to “No Child Left Behind” (NCLB) mandates, according to Eduventures’ recently released annual state-of-the-industry report, entitled K-12 Solutions Learning Markets & Opportunities. These segments were a driving force in an industry where supplier revenues jumped 6% in the 2004-05 academic year over the previous year, amounting to $21.9 billion.

 “  The 2005-06 school year marks the first time that schools that have failed to achieve performance standards were required to provide supplemental education services to student...  
“As expected, NCLB continues to define spending patterns nationwide,” said Tim Wiley, a senior analyst in Eduventures K-12 Solutions Program, a member-based research service for suppliers to K-12 districts and schools. “The 2005-06 school
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 year marks the first time that schools that have failed to achieve performance standards were required to provide supplemental education
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 services to students. This situation has driven demand for third-party tutoring services and other remedial solutions.”

Administrators continue to seek to boost school performance through increased assessment linked to targeted delivery of supplemental materials and tutoring. This trend is resulting in:

• A move to greater interest in web-based products and services

• Accelerated adoption rates of content and assessments designed to serve English-language
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 learners (ELL)

• Focus on the provision of professional development with an attempt to correlate spending to student learning outcomes

• Increasing collaboration among state education departments

Other highlights from the K-12 Solutions Learning Markets & Opportunities report include:

• Improving state budgets have resulted in greater availability of state funding for existing and new K-12 initiatives. With state funding accounting for nearly 48% of total K-12 spending, stronger state budgets are having far-reaching effects on the K-12 sector.

• Benefits of virtual schools and distance learning were highlighted in the aftermath of Hurricane Katrina, as more than 100,000 K-12 students were displaced at the beginning of the school year in the Gulf Coast region.

• Schools and education agencies continue to adopt new technologies, including one-to-many classroom computing devices such as virtual classroom platforms, digital video projectors and interactive assessment devices.

“Looking to the future, we expect that providers that support professional development and school restructuring will ride the next big NCLB wave as the impact of requirements around those areas are triggered in 2006 and 2007, respectively,” continued Wiley.

Growth in those segments of the market are expected to be significant contributors to the expansion of the K-12 supplier market through the 2008-09 school year, at which point Eduventures estimates that the sector will total more than $28 billion.

About Eduventures, LLC
For more than a decade, Eduventures LLC has been the most trusted name in the education market for market research, consulting services, and peer networking. Its clients include senior administrators and executives from leading educational institutions and companies serving the K-12, higher education, and corporate learning markets, as well as decision-makers in government agencies and the investment community. For more information, visit www.eduventures.com.


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