Museums and cultural institutions industry

Industry Snapshot

GENERAL INDUSTRY: Arts and Entertainment

CAREER CLUSTER: Arts, A/V Technology, and Communication

SUBCATEGORY INDUSTRIES: Aquariums; Art Museums; Botanical Gardens; Halls of Fame; Historical Museums; Historical Ships; Historical Sites; Military Museums; Natural History Museums; Nature Parks; Nature Preserves; Nonretail Art Galleries; Observatories; Science and Technology Museums; Sculpture Gardens; Zoos

RELATED INDUSTRIES: Libraries and Archives Industry; Outdoor Recreation Industry; Philanthropic, Charitable, Religious, Civic, and Grant-Making Industry; Themed Entertainment Industry; Travel and Tourism Industry

ANNUAL DOMESTIC REVENUES: US$16.9 billion (IBISWorld, 2023)

NAICS NUMBER: 712

Summary

As of August 2022, the International Council of Museums (ICOM) defined a museum as "a not-for-profit, permanent institution in the service of society that researches, collects, conserves, interprets and exhibits tangible and intangible heritage. Open to the public, accessible and inclusive, museums foster diversity and sustainability. They operate and communicate ethically, professionally and with the participation of communities, offering varied experiences for education, enjoyment, reflection and knowledge sharing.."

In the past, the American Alliance of Museums (AAM) has defined a museum as "an organized and permanent non-profit institution, essentially educational or aesthetic in purpose, with professional staff, which owns and utilizes tangible objects, cares for them, and exhibits them to the public on some regular schedule."

These definitions are also applicable to similar institutions, such as nonprofit art galleries, historical societies, zoos, and aquariums.

History of the Industry

The institution of the museum as a place of cultural significance finds its roots in the classical world. Ancient Greece and Rome constructed and valued various “musaeums” or “mouseions” (places of music or poetry)—the Museum at Alexandria being perhaps the most famous. Though these early cultural institutions were largely centers of philosophical thought rather than repositories of valuable objects, the ancient world still had public collections of objects that resembled the modern concept of a museum. Greek temples and Roman forums, for example, often displayed gold and silver offerings, sculptures, and paintings.

During the Middle Ages, churches and other religious institutions throughout Europe acted as cultural repositories, collecting vast numbers of religious artworks and manuscripts. During the fifteenth century, the more modern concept of museums came into fashion in Europe. Over the following few centuries, museums such as the Ashmolean Museum of Art and Archaeology, in Oxford, England; the Vatican museums; the British Museum in London; and the Louvre in Paris, France—considered the first art gallery—were founded. The first modern museums began as private collections of wealthy individuals who amassed extensive collections and then exhibited them to the public. These first museums were, however, rarely accessible to all members of the public, catering instead to the upper classes. In addition, though the ancient world is well known for its fantastic gardens, genuine botanical gardens began to appear at universities during the sixteenth and seventeenth centuries in the interest of scientific study.

Until the eighteenth century, museums were chiefly concerned with collecting the beautiful and the curious, and their collections were often motivated by personal interests. During the nineteenth and twentieth centuries, however, museums, cultural institutions, and public art galleries grew rapidly throughout Europe and the United States. It was during this intense period of proliferation that the concept of the museum as something more than just a storehouse for invaluable treasures was developed. In addition to perservation, museums began to dedicate themselves to conservation and, most important, research. Natural history, science, and art museums became scholarly centers of academic research and thought. Once museums and other cultural institutions became public, exhibition became a much more central concern. Prior museum goals, such as collection, conservation, and preservation, suddenly became the means to procure interesting and desirable exhibitions.

Museums developed slowly in the United States. American painter and naturalist Charles Willson Peale founded a natural history museum in the late eighteenth century in Philadelphia. He is considered the first great American museum director. In 1846, James Smithson, a British scientist, made a bequest to the United States “for the increase and diffusion of knowledge” that led to the development of the Smithsonian Institution. In its formative years, however, the Smithsonian remained devoted to research; it was not until 1873 that it widened its scope to include all areas of the arts and humanities. The United States finally made its mark on the development of the modern museum in 1870, with the founding of the American Museum of Natural History (AMNH) and the Metropolitan Museum of Art in New York, as well as the Museum of Fine Arts in Boston.

The influence and spread of the automobile also led to museums, historical sites, and cultural institutions being located outside major cities. Historic homes, battlefields, and other such sites became more popular, and sites that were maintained and opened for the public became more widespread. Throughout the twentieth century, museums and other cultural institutions began to focus on education. American museums, especially, became devoted to public education. Many such organizations also transformed themselves into cultural centers with performing arts, music, and film presentations.

The Industry Today

A 2007 AAM survey identified four critical challenges that museums would face over the coming years: obtaining increased public funding rather than relying on private funds and benefactors; adapting to changes in technology, including new educational technologies, while still maintaining current museum practices and standards; developing new leaders, particularly among recent graduates and young professionals; and maintaining their relevance in the face of rapid social and cultural change. The industry faces considerable challenges in the face of the changing cultural landscape. Whereas museums were once regarded as warehouses of knowledge and shrines to specific aspects of history or culture, they have come under fire as outdated, stale buildings devoted to antiquated ways of thinking. In response, many cultural institutions have dedicated themselves to updating their exhibitions, expanding their collections and gift shops, and refining and publicizing their research. They have attempted to become more accessible through alternative approaches, such as mobile and online exhibits, as well as adopting educational programs for adults and children alike, including guided tours, demonstrations, lectures, and study groups.

Germain Bazin (1901–1990), former chief curator of the Louvre, once commented,

Perhaps the most significant contribution America has made to the concept of the museum is in the field of education. It is common practice for a museum to offer lectures and concerts, show films, circulate exhibitions, publish important works of art. The museum has metamorphosed into a university for the general public—an institution of learning and enjoyment for all men. The concept has come full circle. The museum of the future will more and more resemble the academy of learning the “mouseion” connoted for the Greeks.

According to the Institute of Museum and Library Services, in 2022, the United States was home to more than thirty-five thousand museums. Rather than dusty storehouses of artifacts, these organizations have evolved into vital cultural institutions that strive to reach a wider population. They extend to classrooms, theaters, cinemas, performance halls, and the Internet. As they continue to evolve and adapt to the changing interests and habits of their visitors, museums have never been more exciting.

Industry Outlook

Overview

As a result of the economic downturn of 2007–2009, museums and cultural institutions experienced a decrease in revenue and donations (as well as a loss in the value of investments held in trusts), even though for many admissions have remained somewhat steady. For example, the American Folk Art Museum, located in midtown Manhattan, saw its revenue drop by half—from $6.4 million to $3.2 million—from fiscal 2008 to fiscal 2009. In addition, New York City’s Metropolitan Opera reported in 2009 that its $300 million endowment had decreased in value by one-third. More glaring, the Nevada Department of Cultural Affairs cut its budget in 2009, resulting in state museums being closed four days per week. Other museums and institutions, facing similar fiscal cutbacks, postponed exhibitions or suspended daily operations. At the same time, these institutions adjusted over the subsequent years to achieve more with less, focusing on incorporating more community connection and social programs to fill economic gaps.

According to the BLS, faster-than-average growth is expected in the museum industry, with employment expected to increase for archivists, curators, and museum workers by approximately 10 percent from 2022 to 2032. Occupational employment statistics indicate that the median hourly wages and annual salaries for these positions are also on the rise. A growing interest in establishing and maintaining museum collections, in preserving the growing volume of records and information, and in exhibiting various collections publicly are all contributing factors to this growth.

However, competition for museum positions is, and will continue to be, high. As more people choose to pursue museum studies as a career option, the number of qualified candidates will continue to outnumber vacancies. Students who establish themselves in a more competitive position tend to hold advanced degrees and have a keen ability to work in a digital environment. This is particularly true as cultural institutions are increasingly making their collections available online and offering education opportunities and exhibits on the internet and in other digital forms. (Digital media and skills are equally relevant and in demand in the for-profit art industry.)

Many museums and cultural institutions are highly dependent on outside funding to continue their operations. Budgets are largely based on fund-raising efforts, grant acquisition, and membership support, and museums generally generate revenue based on earned income, membership, and philanthropy. As a result, job security and institutional budgets can fluctuate with periods of strong and weak national economic growth. The number of visitors is also influenced by trends in the wider travel and tourism industries. When tourism is on the rise, museum visitorship and membership also increase. When tourism is on the decline, museums and other cultural institutions have fewer visitors, fewer members, and smaller funds from external sources.

Tourism and other leisure activities were strongly affected by the onset of the COVID-19 global pandemic in 2020. The American Alliance of Museums reported that on average, US museums were closed for twenty-eight weeks. About 12 percent were still closed to the public in January 2022. Museums that reopened reported they were seeing an average of 62 percent of pre-pandemic attendance, while about 25 percent were seeing 30 percent capacity. About 60 percent experienced financial losses averaging nearly $800,000 related to the pandemic. Such losses could be devastating to many facilities; 60 percent of the museums operated on budgets of $1 million or less. The pandemic's impact on workers was not universally felt. About 56 percent of museums furloughed or laid off some staff. Museum directors credited federal pandemic relief funding with helping them to keep their employees. Many museums began remote learning programs during to pandemic to assist schools and students; 39 percent of these museums reported they planned to maintain these programs and outreach efforts.

Employment Advantages

Most people who work in museums, zoos, galleries, and other cultural institutions find that their work combines learning and entertainment. Such organizations are natural fits for individuals with an interest in history, art, or the natural world. While academic environments are potentially static, museum work can be engaging and stimulating. Employees can work with subject material they enjoy in an environment that fosters appreciation of and interaction with that material on a variety of levels. Such work can also afford many opportunities for interaction with the general public. The number of small and midsize institutions is surprisingly large and growing. Job opportunities, though influenced by economic cycles, are usually available for a variety of roles in a variety of organizations.

Annual Earnings

According to a 2023 report from IBISWorld, museums and cultural institutions in the United States take in an annual revenue of $16.9 billion. Although museums and cultural institutions are widespread and successful throughout the United States and many European countries, the industry is in relative infancy elsewhere. Many developing nations are currently home to only a few state-funded national museums, but there has been tremendous growth in the number of new museums that target local history, arts, and issues. These institutions tend to be private, for-profit organizations, but, owing to the state of the industry, revenue and earnings statistics are unreliable.

Bibliography

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