Woah baby: Increases in the number of children in California and disposable income will benefit the industry

The Day Care industry in California has slowly gained ground despite some roadblocks, recovering due to favorable macroeconomic and demographic trends. With more women entering the workforce, demand for day care services has picked up. Furthermore, rising disposable income has provided families with more resources to afford the cost of day care. However, the stubbornly high cost of child care in California remains one of the primary factors that discourages families from seeking center-based day care. Over the next five years, the industry is expected to benefit, as the occupancy rates at day care centers are projected to rise in line with the growing number of children aged nine and younger in California...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
1.2%
Forecast Growth 17-22
Profit
Employment
181,460
Businesses
114,440

Industry Threats & Opportunities

  • The high cost of child care in California remains one of the primary factors discouraging families from seeking center-based day care
  • Operators have diversified their offerings by incorporating linguistically appropriate and culturally sensitive care
  • Despite an increasing number of entrants, industry consolidation is projected to continue
  • Industry Report - Industry Investment Chapter

    The Day Care industry exhibits a low level of capital intensity, measured as spending on capital versus labor. IBISWorld estimates that in 2017 operators will spend $0.04 on capital for every $1.00 spent on labor. Capital investment is mainly used in maintaining the business' central location and includes software and vehicles. Child day care involves a high level of personal care and interaction; consequently, wages constitute the largest expense for industry operators. IBISWorld expects capital intensity to remain low through 2022 while labor intensity remains high...purchase to read more.

    Additional Insights for the Day Care in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Day Care in California Industry are

  • Ability to take advantage of government subsidies and other grants
  • Ability to vary services to suit different needs
  • Ability to alter mix of inputs in line with cost
  • IBISWorld analysts also discuss how external factors such as Per Capita Disposable Income in California and Local and State Government Expenditure in California in the Day Care in California industry impact industry performance..

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    What's in this report

    What is the Day Care in California Industry?

    Industry operators provide day care services for children, primarily those under the age of five. Industry operators may also run preschool programs that prepare three- and four-year-olds for kindergarten. However, kindergarten education is excluded from industry services, as are in-home nanny services.

    Industry Products
  • Child day-care services
  • Preschool programs
  • Government contributions
  • Other services and receipts
  • Industry Activities
  • Providing child and infant day care
  • Providing preschool programs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per Capita Disposable Income in California
  • Local and State Government Expenditure in California
  • Unemployment Rate in California
  • Number of children aged nine and younger in California

  • Current Performance
  • Getting back on their feet
  • Industry landscape and diversity
  • Expensive child care
  • Chart: Revenue Growth

  • Industry Outlook
  • Sound investment
  • Industry support and assistance
  • Table: Day Care in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Day Care in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Orphanages & Group Homes
  • Family Counseling & Crisis Intervention Services
  • Community Housing & Homeless Shelters
  • Consumers

  • Key Selling Industries
  • Book Publishing
  • Computer Stores
  • Food Service Contractors
  • Household Furniture Manufacturing
  • Janitorial Services
  • Toy, Doll & Game Manufacturing

  • Products & Services
  • Child day-care services
  • Preschool programs
  • Government contributions
  • Other services and receipts
  • Chart: Day Care in California Industry Products and Services Segmentation

  • Major Markets
  • Households with income under $50,000
  • Households with income greater than $100,000
  • Households with income between $50,000 and $100,000
  • Chart: Major Market Segmentation for the Day Care in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesRent and utilitiesPurchases and other
  • Chart: Cost Structure Benchmarking – Sector vs Day Care in California

  • Basis of Competition
    Price of serviceBrands and marketingLocation of serviceReputation of the company
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Day Care in California Industry

  • Bright Horizons Family Solutions Inc., Kiddie Academy Child Care Learning Centers, KidsPark Inc., KinderCare Learning Centers Inc., Learning Care Group Inc., Goddard Systems Inc.,
  • Table: Bright Horizons Family Solutions Inc. - financial performance
  • Table: Kiddie Academy Child Care Learning Centers - financial performance
  • Table: KidsPark Inc. - financial performance
  • Table: KinderCare Learning Centers Inc. - financial performance
  • Table: Learning Care Group Inc. - financial performance
  • Table: Goddard Systems Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Day Care in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Day Care in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Child-To-Staff Ratio
  • Legal ratio mandated under state law for child care centers for the maximum number of children per staff member.
  • Employer-Sponsored
  • A day-care service that a company provides its workers through a contract with a local day-care center or facility.
  • Occupancy Rate
  • The rate of available spots at a day-care center that are filled. A rate of at least 70.0% is necessary for a center to be profitable.
  • What Our Customers Say

    Why buy this report?

    The Day Care in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Day Care in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Day Care in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Day Care in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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