Industry Analysis & Industry Trends
Although the Day Care industry grew rapidly in the 1990s, growth slowed in light of the economic downturn as costs exceeded what many families can bear. While high costs generated high profit margins for operators, tight state budgets combined with slow disposable income growth limited demand for industry services during the first half of the current five-year period. More recently, as per capita disposable income and government funding have been on the rise, the industry has once more returned to more rapid growth. Low accessibility to day care centers and preschools has prompted renewed attention to the subject, with the White House and Department of Education proposing new ways to expand funding to make day care services accessible to all US households... purchase to read more
Industry Report - Industry Products Chapter
Child day care services
The industry derives the majority of its revenue from standard child day care services, which account for 54.2% of industry revenue. These services are primarily offered outside the home in child care service centers, though some revenue is derived from in-house babysitting. This segment does not include private hire nannies, who are included in the Maids, Nannies and Gardeners industry (IBISWorld report 81411).
Child care centers are licensed facilities that offer relatively large numbers of enrollments. They are typically more expensive than babysitting services but less expensive than full-time private nannies. Geographic differences in affordability are also important... purchase to read more