As Recession Worries Grow, Smart Education Investments Can Provide Growth And Resilience

Investors are stepping up their interest in the education sector recognizing it as a relatively safe harbor in any coming economic downturn that will continue to provide strong returns. Not all types of education businesses are created equal, though. It’s important for investors to differentiate between which market niches and which types of businesses will be more resilient in a recession. Although not totally immune from a recession, the $830 billion K-12 market in the U.S. will probably prove the most robust part of the education sector thanks to its reliance on public funding. However bad the downturn is, kids will still go to school and education districts will still demand services related to classroom learning and administration services. Providers that focus on meeting school districts’ targeted outcomes for students and those that have a strong technology component should prove to be the most attractive.