Increasing research supporting the benefits of early childhood education is boosting demand for child-care services. As result, industry revenue rose despite tough economic conditions during the recession. Over the next five years, franchises will continue to benefit from rising demand, especially as more people return to work and require care for their children. For these reasons, industry research firm IBISWorld has added a report on the Child Education and Developmental Center Franchises industry to its growing industry report collection.
Los Angeles, CA (PRWEB) October 23, 2012
The Child Education and Developmental Center Franchises industry has posted strong growth over the past decade. According to IBISWorld industry analyst Caitlin Moldvay, an increasing body of research supporting the benefits of early childhood education has fostered rising parental interest in education-based child care. Industry franchises provide center-based child care for children under the age of six, with a primary focus on promoting mathematics, literacy and language-based skills. Increasing interest in early education combined with strong marketing has led the industry to outperform the wider Day Care industry (IBISWorold report 62441) over the past five years, even in the midst of the economic downturn. Although revenue growth remained positive during the recession, its rate of ascent slowed markedly as a result of heightened unemployment. Nevertheless, steadily rising child-care costs and an expansion in the industry's target market resulted in overall growth during the period. Over the five years to 2012, industry revenue is estimated to grow at an average annual rate of 3.3%, topping $1.6 billion; this includes estimated growth of 4.0% during 2012 as a result of slowly improving per capita disposable income.
According to the latest information from the US Census Bureau, there are currently 23.4 million children under the age of six, of which 10.9 million require child care. Demand for industry operators has been fueled by the long-term shift in women's workforce participation and support for early childhood development. Consequently, over the past five years, the number of franchise centers has grown at an average annual rate of 4.2% to an estimated 2,174 locations. The Child Education and Developmental Center Franchises industry exhibits a medium level of market share concentration. Goddard Systems Inc. currently licenses more than 388 franchised schools. Primrose licenses more than 247 franchised schools throughout the United States. Other major players include The Learning Experience and Kiddie Academy Child Care Learning Centers. Since 2007, market share has increased slightly as a result of the growing number of major companies' franchises across the United States. The industry is represented by many well-established franchises offering a variety of services, allowing the top companies to earn a significant share of revenue, says Moldvay. However, all of the industry's major players have franchise models that vary slightly in regard to royalty fees, start-up costs, training and marketing support, which makes them each suitable to certain potential franchisees
Over the five years to 2017, industry revenue is forecast to rise. The industry will benefit from the decline in the unemployment rate, which will foster greater demand for child care from working parents, and accelerate per capita disposable income growth. Over the next five years, industry franchises are expected to increasingly expand their array of technology-oriented activities for children, including using cameras, computers and the internet as interactive learning tools. For more information, visit IBISWorld’s Child Education and Developmental Center Franchises in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry includes franchises that provide educationally and developmentally-focused child care, primarily for children under the age of six. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude non-franchise data.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/10/prweb10045450.htm
This article (Child Education & Developmental Center Franchises in the US Industry Market Research Report Now Available from IBISWorld) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.