Pay to play: Industry revenue will grow due to the state's high cost of child care

Over the five years to 2017, the Day Care industry in Illinois has struggled due to unfavorable demographics and a higher than the national average unemployment rate. Despite increasing disposable income levels, the unemployment rate in Illinois remains higher than the national average. The high cost of child care in Illinois remains one of the primary factors that discourages families from seeking center-based day care. According to a report published by Child Care Aware of America in 2015, Illinois ranks third for the most expensive child care in the United States. Additionally, Illinois currently does not offer child tax credit or child and dependent care tax credit...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-0.3%
Forecast Growth 17-22
Profit
Employment
79,937
Businesses
47,069

Industry Threats & Opportunities

  • The high cost of child care in Illinois can discourage families from seeking center-based day care
  • As a result of industry consolidation, the number of day care center operators has increased slowly
  • More players will enter the industry to take advantage of rising demand
  • Industry Report - Industry Locations Chapter

    The geographic distribution of enterprises in the Day Care industry in Illinois closely follows the distribution of children aged nine and under. Other factors that influence the dispersion of industry establishments include the cost and supply of child care, population concentration, income and housing affordability patterns and child care subsidy policies. As a result, Cook County, which is home to Chicago, holds the highest share of day care centers (48.6%) and accounts for 40.5% of the state population. This is followed by Lake County (7.9%), located along the shore of Lake Michigan and home to affluent communities such as Lake Forest and Highland Park. DuPage County accounts for 6.8% of the state's child care facilities and is considered a diverse socioeconomic region in Illinois. Fur...purchase to read more.

    Additional Insights for the Day Care in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Day Care in Illinois 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 Illinois and Local and State Government Expenditure in Illinois in the Day Care in Illinois industry impact industry performance..

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    What's in this report

    What is the Day Care in Illinois 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
  • 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 Illinois
  • Local and State Government Expenditure in Illinois
  • Unemployment Rate in Illinois
  • Number of children aged nine and younger in Illinois

  • Current Performance
  • Unfavorable demographics
  • Industry landscape and consolidation
  • Expensive child care
  • Chart: Revenue Growth

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

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Day Care in Illinois 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
  • Other
  • Government contributions
  • Chart: Day Care in Illinois Industry Products and Services Segmentation

  • Family trends
  • Government assistance

  • Major Markets
  • Households with income between $40,000 and $100,000
  • Households with income above $100,000
  • Households with income under $40,000
  • Chart: Major Market Segmentation for the Day Care in Illinois 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 Illinois

  • 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 Illinois Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Day Care in Illinois 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 Illinois 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?

    IBISWorld’s Industry Market Report on Day Care in Illinois is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 Illinois:
    • 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 Illinois 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 Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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