Industry Analysis & Industry Trends
The Elderly and Disabled Residential Care industry is expected to generate revenue of £6.1 billion in 2012-13, a decline of 1.6% on the previous year. This represents about 40% of total expenditure on residential care in the United Kingdom. Industry revenue is projected to fall by an annualised 1.8% over the five years through 2012-13, corresponding with the decline in the number of residential care places for the elderly and people with disabilities, and the personal and government preferences for people to stay in their own homes for as long as possible. There is a statutory duty on local authorities to provide residential accommodation for people in need of care but, in these straitened economic times, they are keen to do this in the most cost-effective way... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a low level of capital intensity. Labour costs account for about half the industry revenue, while depreciation accounts for about 5.0%. Therefore the industry has a labour-to-capital ratio of 10:1, more than twice the average for the UK economy ,and indicative of a labour-intensive industry.
Labour costs are high because of the level of personal care residents receive. There are few opportunities to use technology to reduce labour costs, other than for administrative tasks. Capital costs principally relate to the ownership, construction or upgrading of premises. The level of capital intensity can vary significantly according to the level of personal care residents require, and according to the type and level of outsourcing... purchase to read more