2010 was a turnaround year for many U.S training organizations. After double-digit spending cuts in each of the prior two years, training budgets began to stabilize – and even increase within many organizations . Overall, companies spent 2% more on training in 2010 than in 2009.
With budgets loosening up, many L&D organizations initiated learning infrastructure projects in 2010. The proportion of spending allocated to learning tools and technologies reached an average of 10% – nearly equaling its high of 11% in 2007. (See Figure 1 below.)
During the recession, many companies shelved their learning systems projects when finances became tight. Several companies we interviewed, including Amway, AutoNation, The Cheesecake Factory, and U.S. Oncology, resumed their technology projects in 2010 by either replacing their learning management systems or adding capabilities to their existing systems, such as talent management functionality or social learning modules.
The business services/consulting and tech sectors spent the highest percentage of training dollars on learning technology, at 13 to 14 percent. Health care companies also invested a sizeable portion of training funds to learning technologies, with 11% of their funds allocated to this category.
For more data and trends on training spending, read our Corporate Learning Factbook report.
Figure 1: Percent of Training Spending on Learning Tools & Technologies 2006-2010