The 40th annual Training Magazine Industry Report offers valuable insights into U.S. training expenditures, staffing, and program trends. Conducted by an external research firm, the study surveyed U.S.-based corporations and educational institutions with over 100 employees across a variety of industries. The data, collected between April and July 2021, represents a broad cross-section of company sizes and industries.

Key Findings from the Survey

Survey respondents included:

• 61% were managers or above.
• 19% were developers or instructional designers.
• 19% were mid- to low-level associates.
• 67% were involved in purchasing products and services for training.
• 26% set the training budget, and 25% made final purchasing decisions.

Training Expenditures

In 2020-2021, U.S. training expenditures rose 12%, reaching $92.3 billion. The increase can be attributed to a 15% jump in the number of companies included in the analysis, driven by small businesses dominating the market. Payroll costs surged by 62%, yet spending on outside products and services dropped by 24%.

• Large companies: Average expenditures decreased from $22 million to $17.5 million.
• Midsize companies: Expenditures increased to $1.3 million.
• Small companies: Expenditures fell to $341,505.

Despite lower spending per learner ($1,071 vs. $1,111 in 2020), companies provided more training hours, with the average employee receiving 64 hours of training (up from 55.4 hours in 2020). Large companies provided the most training hours (78.1), while large retailers led with an average of 266 hours.

Budget Trends and Spending Priorities

• 47% of companies reported stable training budgets.
• 32% saw an increase, particularly in retail/wholesale sectors.
• Education institutions were most likely to face budget cuts.

The main reasons for budget increases included:

• Expanding the scope of training programs.
• Purchasing new technologies or equipment.
• Adding training staff and serving more learners.

Training Delivery Methods

The pandemic significantly impacted training delivery, with organizations increasingly adopting remote and blended learning approaches.

• 43% of training hours were delivered using blended learning, up from 33% in 2020.
• Virtual classrooms and webcasting accounted for 37% of training hours.
• Traditional in-person training dropped to 30% from 40% the previous year.

Despite the shift toward remote learning, 56% of organizations plan to return to some form of classroom training post-pandemic, while maintaining many remote options.

Looking Ahead

The report indicates growing interest in digital training tools, with the most anticipated purchases including:

• Authoring tools/systems (39%).
• Online learning tools and systems (35%).
• Learning management systems (34%).

While technology like virtual reality and artificial intelligence remains underused, large companies are increasingly experimenting with these new tools. Outsourcing of training services is expected to remain steady, with larger companies forecasting more reliance on external services compared to smaller firms.