Industry Analysis & Industry Trends
The economic recovery will greatly benefit this industry. As parents and guardians, particularly females, rejoin the workforce, demand for day care services will grow. Additionally, expected increases in disposable income levels will allow families to spend more on child care, including high-value services such as early education programs. One key area of growth for the industry is employer-sponsored child-care services, which will become increasingly important as companies ramp up their efforts to attract and retain staff... purchase to read more
Industry Report - Industry Investment Chapter
The Day Care industry has a low level of capital intensity. IBISWorld estimates that for every dollar spent on wages, industry operators will spend $0.05 in capital. Capital investment is mainly used in maintaining the business' central location. Over the past five years, capital intensity remained constant; in 2009, for every dollar spent on wages, industry operators spent about $0.05 in capital investment. Child day care requires little capital investment; however, firms in this industry may also lease their property or travel to the client's home, both of which mitigate this capital expense.
Child day care involves a high level of personal care and interaction; consequently, wages constitute the largest expense for industry operators... purchase to read more