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Education 30 2014 Economic Forecast www.wbjournal.com Worcester Business Journal 30 2014 Economic Forecast www.wbjournal.com Worcester Business Journal Here are five things to watch for in 2014: Slower Enrollment Growth While most sectors suffered through the recession, higher education experi- enced a rush of applicants interested in pursuing new degrees to make them more competitive in the job market. But the swell of new students has receded, now that the economy is steadily growing. In 2012, the National Student Clearinghouse reported a 1.8-percent decrease in higher education enrollment in fall 2012, with enrollment in every sector except private, non-profit institutions declining from 2011, followed by a 2.3-percent decrease in the spring semester, compared with the spring of 2011. At the same time, the number of students graduating from U.S. high schools has remained flat in recent years, and area colleges and universities are adjusting their strategic plans in light of slower post-recession enroll- ment growth. Anna Maria College President Jack Calareso, chairman of the board of direc- tors for the Higher Education Consortium of Central Massachusetts (HECCMA), said that traditionally, colleges and universities plan to get bigger. "I think many schools have modified that down a bit so the growth will be more incremental," Calareso said, adding that HECCMA's 12 member schools aren't concerned that enrollment will decline in 2014 and beyond. Rather, enrollment will experience lim- ited growth or remain stable, he said. A Shrewd Approach To Curriculum Investment With fewer students enrolling, Calareso said colleges and universities must also focus on offering education at a price students can afford. This may mean offering more financial aid, but it's also important to find ways to generate revenue at a lower cost, he said. A major aspect of this strategy is investing in online education. Anna Maria, for example, may add online business and health care management degree pro- grams, as delivering education online is less expensive than in the classroom. Calareso said online programs also allow schools to cast a wider net and enroll stu- dents from across the country, as well as from overseas. Colleges and universities are also putting more resources into designing certificate programs that enhance the resumes of professionals for less time and money than degree programs require. The majority of area institutions have begun offering such programs, and new ones are frequently announced. Framingham State University, for example, announced this fall it will offer certificate programs in accounting and pro- fessional speech communications. More Private-Sector Partnerships Colleges and universities that concen- trate heavily on the sciences are fre- quently finding opportunities to collab- orate with businesses, often in their own backyards. This is true especially at Worcester Polytechnic Institute (WPI) and University of Massachusetts Medical School (UMMS), both of which have ongoing research and licensing agreements with biotechnology companies that bring work that university faculty and students have done to market. Dr. Terence Flotte, executive deputy chancellor at UMMS, said that while the school has participated in such partnerships for several years, their importance will get an even greater focus in 2014 and beyond. That's because sequestration has decreased federal funding for research, so funding from private compa- nies to develop medical technology is more impor- tant. UMMS has contracts with pharmaceutical com- panies like AbbVie and Pfizer, and new partnerships will be announced in the coming year, Flotte said. "We have been trying to expand this activity for a number of years … and I think it's really just coming together with more urgency, with the desire to diver- sify research funding," Flotte said. Emphasis On STEM The United States has some catching up to do when it comes to directing stu- dents to education and careers in sci- ence, technology, engineering and mathematics — the STEM disciplines. While eastern countries such as China and India are exporting stu- dents that pursue such degrees in droves, U.S. educa- tion policy makers are trying to steer more students into STEM fields. Gov. Deval Patrick has made STEM education a goal, and programs designed to engage students are cropping up at public schools across Massachusetts. The state's community college system has responded, too, by creating STEM-related programs of study and actively recruiting students to pursue them. The numbers at Worcester's Quinsigamond Community College tell the story well. QCC President Gail Carberry said that in 2006, about 70 students were enrolled in the college's engineering program. Today, that number has increased to approximately 300. Now, QCC plans to build a new science and tech- nology building on West Boylston Street to accom- modate expanding STEM programs. Construction is scheduled to begin in late 2014. "I think increasingly, the liberal arts degree — while it's valuable still … as a broadening of the mind — in an entry-level capacity it's less easy to sell," Carberry said. Greater Focus On Workforce Preparation Some segments of the business com- munity have been lamenting the so- called skills gap in recent years, saying there aren't enough young workers to take the jobs of baby boomers who have retired or are approaching retirement, particularly in manufacturing. The Great Recession also served as a wake-up call to students, and their parents who pay tuition. More are asking whether traditional four-year degree programs are worth the investment. "I think since 2008, when the economy began to slide, (students) came to a stark realization that, with- out some key skills areas, their resumes aren't really marketable," Carberry said. Colleges and universities, particularly public insti- tutions, have responded in the same way they've responded to the need for STEM education. Schools have begun investing in programs that will almost certainly lead to employment in the real world. For example, QCC will be adding new oncology and imaging programs to its health care curriculum. Carberry said those programs are likely to lead stu- dents directly into the workforce. n By emily micucci Worcester Business Journal Staff Writer 5 Things To WaTch College At What Price? What Value? I n some ways, a bad economy has been good for education, particu- larly higher education. But the turmoil brought on by the Great Recession has forced colleges and universities to examine how to deliver the best value to students, while generating enough revenue to support sustainable growth and goals. In 2014, we will continue to see institutions adjust to a post-recession economy with a fresh approach to how they do business. 2 3 5 1 Falling College Enrollments Total enrollment at degree-granting institu- tions has fallen the last two years, although the numbers are up slightly at four-year, non- profit schools. Source: National Student Clearinghouse Anna Maria College President Jack Calareso predicts limited or stable college enrollment growth. 4 6 7 8 '11 '12 '13 4-year, public 4-year, private nonprofit 2 3 4 '11 '12 '13 7.8M 3.8M 1 2 3 4-year, for-profit 2-year, public 5 6 7 1.3M 6.5M '11 '12 '13 '11 '12 '13 Enrollment (In millions) Enrollment (In millions) Enrollment (In millions) Enrollment (In millions)