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, KinderCare Education, and Learning Care Group; major companies based outside the US include Asquith Nurseries (UK), Kinderopvang Humanitas (The Netherlands), and PLASP (Canada).
Demand is driven primarily by growth in the youth population, and secondarily by employment and income. Recognition of the importance of early education is also driving demand for high-quality care. The profitability of individual child care facilities depends on good marketing, reputation, and efficient operations, as well as how saturated the local market is. Large companies have economies of scale in advertising and administration. Smaller companies can compete effectively in local markets by owning convenient locations. The US industry is highly fragmented: the top 50 companies generate less than 20% 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. Employers typically support development, maintenance, and repair of onsite or nearby child care centers and provide subsidies to make them affordable to employees. 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. Nonprofit operators may be associated with schools, churches, and community organizations. Some small operators run child care centers from their homes.