Executive Summary

The UK training market is a complex and lively one. It meets the needs of a disparate group of customers, from government departments and public-service organisations to large corporations and small firms. The market breaks down into two sectors: the private sector and the publicly funded sector. This report looks primarily at the private-sector market.

Key Note estimates that the private-sector training market was worth around £17.1bn in 2000, having grown by 4.9% during the year. The provision of courses in sales and marketing, interpersonal effectiveness, communication and electronic commerce (e-commerce) grew significantly in 2000. Short courses — especially those lasting for just 1 or 2 days — were the most popular of all. Spending on training was highly variable in 2000, in that around 37% of firms increased their spending, approximately 23% of firms did not increase their spending at all, and around 40% of firms reduced their spending. Spending was highest among public-service organisations, including health and educational institutions, and it was also very high in the financial services sector.

The industry is very fragmented, with suppliers drawn from the worlds of training itself, information technology (IT), management consultancy, professional institutions, publishers and educational institutions. All the major players offer tailored courses, since customers increasingly want courses that will address their specific needs. Put very bluntly, customers buy training from outside when quality of training is uppermost in their minds, and they will provide it in-house — assuming that they have the capability — if cost is more important.

Customers buy training largely on the basis of personal recommendation — from colleagues who have been on a training course, from their own experience or from people they meet outside their own organisation. A high profile or a strong public reputation also weigh strongly in the minds of training buyers.

Video-based training materials have grown in popularity, as have CD-ROM packages. Books still command a large readership in the training market.

A growing number of organisations are now operating with a dedicated training budget, according to The Industrial Society. However, the effectiveness of that training largely depends on how well it dovetails with organisational objectives, and how well the trainee's manager is involved both before and after the training process. This report highlights some key research on training attitudes and training effectiveness.

The future is likely to see two changes: more training based around the Internet and intranets, and a more prescriptive and integrated approach to training adopted by the Learning and Skills Council than was the case with the Training and Enterprise Councils (TECs).

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