Industry Analysis & Industry Trends
Industry operators provide childcare services, primarily to children aged 12 and under. The industry is fragmented, with no players enjoying a market share of over 5%. The industry is anticipated to have grown over the past five years. Although relatively high levels of unemployment at the start of the period negatively influenced demand for industry services, the rise in childcare prices allowed revenue to grow during each of the past five years. An increasing number of children aged 12 and under and government schemes to support parents' ability to pay for childcare also contributed positively. As a result, revenue is projected to increase at a compound annual rate of 3.8% over the five years through 2016-17.
In 2016-17, revenue is anticipated to expand by 4.1% to £3.6... purchase to read more
Industry Report - Starting a New Business Chapter
There are only two significant obstacles to a new player entering the childcare industry. The regulatory environment requires that staff be properly qualified and there is an automatic wage burden on a new centre that has yet to build a client base, which is a cost that cannot easily be modified.
The second obstacle is the initial cost in setting up a centre and attracting parents' interest. Often, rents can be high in areas with many young families, particularly young families with higher incomes – the key market for the industry. The cost of purchasing or building centre accommodation, together with the cost of facilities and equipment can also be prohibitive to a new entrant. How.. purchase to read more