Keiser will offer a bachelor's degree in automotive marketing and management to the current students of Northwood over the next four years in West Palm Beach so they can all finish out their degree, said Arthur Keiser, chancellor of Keiser University. He has no current plans to offer that degree beyond then.
Keiser has 17 campuses across Florida, serving roughly 20,000 students. In 2011, it converted to nonprofit status, having previously been a for-profit university. It offers 94 majors, including a “wide range of programs in business,” Keiser said.
Northwood filings with the government show the school has struggled with mounting losses in recent years. In 2013, the most recent year for which data are available, the university's total revenue minus total functional expenses produced a loss of $5.3 million, after a loss of $3.9 million in 2012.
On the revenue side, contributions, gifts and grants to Northwood dropped sharply in 2012, and then rebounded just slightly in 2013. The school's fundraising events also lost money in both 2011 and 2012, and made a scant $1,284 in 2013.
Northwood's numbers
(in millions)
Total revenues $99.10 (2011); $91.30 (2012); $94.50 (2013)
Total functional expenses $94.30 (2011); $95.20 (2012); $99.80 (2013)
Source: Northwood University
Mr. Gagliardi blamed the poor financials on a lagging recovery in higher education following the 2008-09 recession. He also noted that the school recently completed a five-year capital campaign that raised $73 million, topping the goal of $70 million.
Northwood plans to expand its corporate programs, Mr. Gagliardi said.
Since September 2013, it has had a program with General Motors Co. that allows GM's employees and their dealerships' employees to attend Northwood classes.
But last month it suffered a significant loss when FCA US chose to offer its dealerships' employees free online and in-person classes with Strayer University rather than Northwood. Strayer University, of Washington, D.C., is a private, for-profit university with an enrollment of 40,000. It offers classes online and at 77 campuses in 15 states and the District of Columbia.
Mr. Gagliardi said Northwood is looking to expand the number of schools around the world that it partners with, and it has more recruiters working to attract international students.
“We are in a growth phase,” he said. “Last year, our new students on the Michigan campus grew 10 percent and our graduate school attendance grew 10 percent. We're looking for growth again this coming fall.”
This report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.
