Finding family: As federal funding and private donations increase, industry revenue will rise

Over the past five years to 2018, the Orphanages and Group Homes industry has risen slightly as demand for industry services increased after a long period of decline. Revenue is generated from federal government social services funding, state and local government contributions and private donations. Government spending on foster care increased to keep up with demand. Industry organizations have closed down large group homes in favor of opening more smaller facilities, enabling more individualized care for children. In turn, this has led to a decline in the number of employees because operators can achieve the same child-to-employee ratios with fewer employees. Over the five years to 2023, this industry is anticipated to decline despite increases in demand...purchase to read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 13-18
0.1%
Forecast Growth 18-23
Profit
Employment
130,610
Businesses
9,146
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Federal funding for Medicaid is anticipated to increase strongly and private donations will also increase
  • The federal government also extended support for youths in foster care until the age of 21, boosting foster care participation
  • The Orphanages and Group Homes industry is projected to contract over the next five years
  • Industry Report - Industry Investment Chapter

    The Orphanages and Group Homes industry has a low level of capital intensity. In 2018, for every $1.00 spent on labor, the industry is expected to spend $0.07 on capital investments. This industry primarily provides services that require a high degree of personal interaction between employees and clients. Typically, industry organizations employ social workers, counselors and therapists, which contribute to wage costs. The average industry operator has 18 to 19 employees, because child care is highly labor-intensive. Consequently, overall wages are the largest component of the industry's cost structure. Conversely, the industry has minimal capital costs, because many organizations can lease and rent facilities. Mod...purchase to read more.

    Additional Insights for the Orphanages & Group Homes Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Orphanages & Group Homes Industry are

  • Access to volunteer labor
  • Ability to receive private donations
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Federal funding for social services and Federal funding for Medicare and Medicaid in the Orphanages & Group Homes industry impact industry performance..

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    What's in this report

    What is the Orphanages & Group Homes Industry?

    This industry includes foster homes, group homes, halfway homes, orphanages and boot camps. The industry does not include substance abuse facilities, retirement homes, correctional institutions or temporary shelters. While the industry provides some services to adults, these facilities are primarily for children and youth.

    Industry Products
  • Residential facilities with counseling
  • Residential facilities without counseling
  • Residential facilities for the disabled and mentally ill
  • Contributions (private and from the government)
  • Industry Activities
  • Boys' and girls' residential facilities (e.g. foster homes, ranches and villages)
  • Camps, boot or disciplinary (except correctional) for delinquent youth
  • Delinquent youth halfway group houses and boot camps
  • Disciplinary camps for delinquent youth
  • Group foster homes for children and orphanages
  • Group homes for the mentally disabled without nursing care
  • Group homes for the visual and hearing impaired
  • Halfway group homes for delinquents and ex-offenders
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for social services
  • Federal funding for Medicare and Medicaid
  • Per capita disposable income
  • National unemployment rate
  • Number of adolescents aged 10 to 19

  • Current Performance
  • Legislation and participation
  • Decreased profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Trend toward foster homes
  • Profitability and participation
  • Table: Orphanages & Group Homes Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Orphanages & Group Homes Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Janitorial Services
  • Supermarkets & Grocery Stores

  • Products & Services
  • Residential facilities with counseling
  • Contributions (private and from the government)
  • Residential facilities without counseling
  • Other
  • Residential facilities for the disabled and mentally ill
  • Chart: Orphanages & Group Homes Industry Products and Services Segmentation

  • Demand Determinants
  • Number of children in foster care
  • Child abuse rates
  • Crime rate

  • Major Markets
  • Children aged 6 to 15
  • Infants up to age 5
  • Adolescents aged 16 to 18
  • Young adults
  • Chart: Major Market Segmentation for the Orphanages & Group Homes Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities, depreciation
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Orphanages & Group Homes

  • Basis of Competition
  • Government funding
  • Services
  • Staff and wages

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Orphanages & Group Homes Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Orphanages & Group Homes 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 Orphanages & Group Homes Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Federal funding for social services (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Deinstitutionalizing
  • The process of replacing long-stay mental institutions with less isolated community mental health services such as group homes.
  • Group Home
  • A private residence designed to serve as a non-secure home for unrelated persons who share a common characteristic.
  • Home And Community-Based Services Waiver
  • Medicaid waiver programs that assist people who have physical or mental disabilities.
  • What Our Customers Say

    Why buy this report?

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 Orphanages & Group Homes 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

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