Important Trends In The Childcare & Nursery School Industry

If you are an executive director, or owner of a daycare/nursery school business it is important to be alert to important indicators within your industry. We found the following data through First Research, a provider of industry intelligence tools primarily to the private equity industry.


1. Demographics
The population of children in the target area for child care is anticipated to rise over the next 10 years. This will create a larger demand for child care services. It is predicted that the number of children under 5 will increase by 8 percent and the number of children between ages 5 and 13 will increase by 10 percent. ( Source: Bureau of Labor & Statistics )
2. Government Spending

Government spending has been increasing. Almost 35% of the child care industry revenue comes from government spending. ( Source: Bureau of Labor & Statistics )

3. Real Time Online Surveillance

Centers throughout the nation are now using online video to allow family members to watch their children from their computers. Parents are not able to hear what is happening but can see their children in real time. It is anticipated that more and more child care centers will implement this technology even though there are some privacy concerns. ( Source: Risk & Insurance Management Society)

4. Nannies Are Strong Competition

Nannies compete directly with child care centers. They typically work 40-60 hour weeks and make an average of $500 per week. They do not typically live on the premises. (Bureau of Labor & Statistics)

Consider Also The Following:
  • U.S Personal Income rose over 5% in March 2011 compared to the same month in 2010.
  • Employment at U.S child care facilities rose 1% in Feb. 2011 compared to the same period in 2010. This followed a 1.3% increase in January.
  • Overall U.S employment rose .7% in January and 1% in February.
  • Total revenue in the United States for child care services rose over 6% in the last quarter of 2010 compared to the same period in 2009.
  • The price of crude oil, which has an effect on the energy costs of child care facilities, rose 32% in the first week of May 2011 compared to the same week in 2010.

Employment (which is an indicator of demand) and revenue are rising. These are key indicators considering when more people are working that means more people need to send their kids to daycare which should  lead to increased demand for daycare & nursery school placement.

We hope you found this information helpful.  Of course none of this information is relevant if your facility suffers a loss that is not fully covered by your nursery school Insurance child care insurance and day care insurance . Contact Risk Advisor or visit our website at  Metropolitan Risk Advisory for a free coverage analysis. Chances are this review is years over due.

Related posts:

  1. Highest Paying States For Executives Directors of Nursery School & Day Care Facilities
  2. Quick Tips On How To Compete In The Nursery School Day Care Space