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| Countries covered: United States Brief Excerpt from Industry Overview Chapter: The US child care services industry includes about 53,000 commercial facilities with combined annual revenue of $20 billion, plus about 21,000 facilities run by nonprofit organizations with combined annual revenue of about $13 billion. Major companies include Bright Horizons Family Solutions, Knowledge Learning, and Learning Care Group. The industry is highly fragmented: the top 50 companies generate less than 20 percent of revenue. 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 labor-intensive: annual revenue per worker is about $35,000. PRODUCTS, OPERATIONS PRODUCTS, OPERATIONS & TECHNOLOGY TECHNOLOGY Child care centers provide supervision and educational programs for pre-school and school-age children. Most commercial companies operate child care centers that are open to the public, but some operate employer-sponsored centers for employees’ children. Likely operators 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. A typical facility occupies 12,000 square feet with kitchen, bathrooms, and play areas. In addition to the physical building, facilities typically include outdoor play space, often equivalent to half the square footage of the building. Hours may be... |
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