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Child’s Play IBISWorld estimates 2017 daycare industry revenues were $48.9 billion, and will increase 1.9% annually to reach $52.5 billion by Private.

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Presentation on theme: "Child’s Play IBISWorld estimates 2017 daycare industry revenues were $48.9 billion, and will increase 1.9% annually to reach $52.5 billion by Private."— Presentation transcript:

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2 Child’s Play IBISWorld estimates 2017 daycare industry revenues were $48.9 billion, and will increase 1.9% annually to reach $52.5 billion by Private pay generates most revenues, but employer-sponsored daycare is expected to increase. IBISWorld reported there were approximately 816,343 daycare operators during 2017 and this number is projected to increase 1.2% annually through The majority of these operators are non-employing, one- person entities (babysitters). US Census Bureau information as of 2016, however, shows 75,314 establishments for child day care services (NAICS code ), 37% of which had 1–4 employees; 19%, 5–9; 23%, 10–19; 18%, 20–49; and 3% had 50 or more employees.

3 Population of Young Children Slowly Increasing
The US birth rate has been decreasing since 2008, with a brief increase during During 2016, the fertility rate decreased to 60.2 births/1,000 women of childbearing age, a 3% decrease from The biggest decrease was among Hispanics, at -27%. During 2017, the US added 2,450,697 people to its population, 57.8% of whom were from net births (births minus deaths) and the remainder from immigration. As of 2030, immigration will account for more of the increase in the American population than net births, and the increase of population will slacken.

4 She Works Hard for a Living
According to the US Department of Labor, 69.9% of mothers and 98.2% of fathers with children younger than 18 are employed. Of mothers with a child younger than 6, 63.9% work, 61.1% with a child younger than 3 and 57.3% with a child younger than 1. Married-couple families account for 67.4% of families with children younger than 18 and 25.3% are single- mother and 7.3% single-father families. According to the US Congressional Budget Office, there will be no change in the projected labor force participation rate from 2017 to 2028 for both married females with young children and unmarried females with young children.

5 Company-Sponsored Childcare
A tight labor market has prompted many employers to add a childcare solution to retain and attract female employees. Solutions include onsite childcare, investing in childcare providers with employee priority admission and subsidies. During 2014 (the latest data), 39% of civilian workers had access to employer-sponsored childcare reimbursement accounts, and 11% to workplace- funded childcare. The largest percentage (67%) of US employers offering childcare assistance during 2017 did so with Dependent Care Assistance Plans (DCAPs) that help employees pay for childcare with pre-tax dollars.

6 Budgeting for Childcare
During 2016, the cost of childcare for an infant was more than the affordability threshold of 7% of the median income for a 2-income family in 49 states plus the District of Columbia. Some low-income families qualify for government subsidies or tax credits. For single-income households, childcare averaged more than 40% of median income, 33% higher than the federally recommended cost. Subsidies can increase the likelihood of single mothers being employed full-time. Millennials’ unemployment rate is 40% higher than the national average. For those who are employed, average infant care costs are more than 27% of Millennials’ median income, 20% higher than the federally recommended cost.

7 Finding Quality Childcare in the “Desert”
The Center for American Progress defines a childcare “desert” as any census tract with more than 50 children younger than 5 with either no providers or so few that there are more than three times as many kids as licensed spots for them. Nationwide, approximately half of Americans live in childcare deserts and the proportion ranges from 62% in California to 24% in Iowa. Suburban areas and Hispanic communities are the most affected. Almost 2 million parents of children age 5 and younger had to quit a job, not take a job or change their job because of childcare issues during Companies lost approximately $4 billion in productivity from absenteeism related to childcare.

8 Advertising Strategies
Childcare centers with a sufficient advertising budget may find early morning news to be a cost-effective choice, especially if their commercials drive viewers to their Website and/or social media pages.   Childcare facilities that accept government subsidy payments should emphasize this cost solutions when targeting prospective families as well as offering to help them obtain tax credits, reducing the overall cost. Highlight flexibility in scheduling for people with shift and other variable work schedules.

9 New Media Strategies If your childcare center is affiliated with an employer or consortium of employers or is located near a large employer, partner with the company to employees to inform them of the benefits you offer. Join moms’ groups on social media, especially Pinterest, Instagram and Snapchat, according to The Media Audit data on page 4 of the Profiler, and create relationships with local mothers. Video is the top content format among Millennials and Gen Xers, so ask parents to participate in short testimonials videos and show the activities at your center (with parents’ permission) and post these videos to your Website and social media pages.

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