Child Care Services Industry Overview

Excerpt from Child Care Services Report

Companies in this industry provide supervision and educational programs for pre-school and school-age children. Major US companies include Bright Horizons Family Solutions, Knowledge Universe, and Learning Care Group; major companies based outside the US include Asquith Nurseries (UK), Kinderopvang Humanitas (The Netherlands), and PLASP (Canada).

Competitive Landscape

Demand is driven primarily by growth in the youth population, and secondarily by employment and income. The profitability of individual child care facilities depends on good marketing and efficient operations. Large companies have economies of scale in advertising and administration. Smaller companies can compete effectively in local markets by owning convenient locations. The industry is highly fragmented: the top 50 companies generate less than 20 percent of revenue.

Products, Operations & Technology

Most commercial child care services companies operate centers that are open to the public, but some operate employer-sponsored centers for employees’ children. Likely hosts of employer-sponsored centers include companies, universities, and military bases. In addition, some operators of traditional child care facilities have opened child care/entertainment facilities at shopping malls, gyms, and casinos to provide hourly care.