Universities scale back on campus development to focus on digital investment

Universities are scaling back on physical campus developments and shifting to digital investments which are “increasingly an either-or proposition”, research suggests.

Analysis conducted by the Nous Group management consultancy has revealed that university administrators are being forced to “choose between physical and digital environments”, with the principal of Nous, Zac Ashkanasy, claiming that “we are on a steam train as a society when it comes to digital”. “The steam train is going downhill and it’s getting faster.”

A survey of over 50 chief operating officers in Australia, Canada, New Zealand, and the UK revealed their concerns surrounding “spending big” on physical campus investments.

56% [of respondent COOs] claimed to have reduced their plans for capital investment, while only 25% intend to spend more on physical infrastructure

Only 31% of respondents considered “on-campus student experience” to be a priority, in contrast to 78% three years ago.

56% claimed to have reduced their plans for capital investment, while only 25% intend to spend more on physical infrastructure.

Warwick, however, has continued to drive ahead with new campus developments in recent years.

Several multi-million-pound investments have been made at the University, such as the ongoing £700 million ‘STEM Connect’ expansion which is set to provide more facilities for STEM and Social Sciences.

Nevertheless, in light of recent nationwide cyber-attacks in the sector, university administrators have shared their experience of “digital disappointment”, alongside the difficulty of integrating student management software with current systems and data.

Universities have begun to consider the true cost-effectiveness of physical infrastructure, with the report revealing that 5 out of 10 classroom seats in US universities and 9 out of 10 in Australian universities are empty.

UK universities are also considering scaling back on ‘low margin courses’ in order to further save money

In light of the mounting costs for universities, administrators are looking to increase student accommodation space while cutting academic offices in order to effectively utilise space.

UK universities are also considering scaling back on “low margin courses” in order to further save money.

Ashkanasy has warned that the days when universities could “grow their way out of trouble” are over, resulting in them having to “think much more carefully about mission and margin”.

“Academic identity and the delivery of a course are quite intertwined”, he said. “It’s not the same in other sectors. If we don’t deliver this course, who will?”