In good hands: Increased government expenditure has driven demand for industry services

The Day Care industry in Canada provides care for infants or young children, typically under the age of five. Additionally, industry operators may care for older children when they are not in school and offer pre-kindergarten programs. Over the past five years, rising per capita income, increased government expenditure and the rising number of women in the workforce have driven demand for industry services. As the maternal labour participation rate increases, fewer parents are available to take care of infants, toddlers and preschool-age children. As the cost of child care has increased, the Government of Canada has implemented programs that provide non-need-based financial support to all families with young more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Government subsidies have been critical in enabling families to afford the cost of day care
  • The Canadian government allocated extensive funding to assist in the costs of day care
  • The industry will benefit from continued strength in the economy
  • Industry Report - Industry Key Buyers Chapter

    The Day Care industry in Canada has a low level of concentration. The three largest companies in the industry are expected to account for less than 5.0% of industry revenue in 2018. Further indicative of the industry's fragmented nature, over 75.0% of operators employ less than 20 employees, according to Statistics Canada. Many people supplement their income by babysitting or partaking in this industry when they are between jobs. However, new operations may arise out of long-standing relationships with many parents. IBISWorld estimates that only one in 10 employees in this industry have a fixed annual salary, with the majority working on an hourly basis instead.Increasing mergers and acquisitions among major players have led to a gradual shift toward larger establishments. Com...purchase to read more.

    Additional Insights for the Day Care Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Day Care Industry are

  • Ability to take advantage of government subsidies and other grants
  • Ability to vary services to suit different needs
  • Ability to alter mix of inputs in line with cost
  • IBISWorld analysts also discuss how external factors such as Government expenditure and investment and National unemployment rate in the Day Care industry impact industry performance..

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    What's in this report

    What is the Day Care Industry?

    This industry provides day care services for infants and children, primarily under the age of five. These establishments generally care for preschool children, but may care for older children when school is not in session such as during the summer or after school hours. Establishments may also offer some educational programs.

    Industry Products
  • Preschool-age day care centres
  • School-age day care centres
  • Regulated family child care
  • Industry Activities
  • Providing day care services for children
  • Providing preschool instruction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government expenditure and investment
  • National unemployment rate
  • Per capita disposable income
  • Number of children aged 19 and younger

  • Current Performance
  • Women in the workplace
  • Public funding and the costs of day care
  • Steady profit margins and industry growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Improved economic conditions
  • Public funding expands
  • Downward profit pressures
  • Table: Day Care Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Day Care Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services In Canada
  • Healthcare and Social Assistance In Canada
  • Consumers in Canada

  • Key Selling Industries
  • Book Publishing in Canada
  • Consumer Electronics Stores in Canada
  • Food Service Contractors in Canada
  • Household Furniture Manufacturing in Canada
  • Janitorial Services in Canada
  • Toy, Doll & Game Manufacturing in Canada

  • Products & Services
  • Preschool-age day care centres
  • School-age day care centres
  • Regulated family child care
  • Chart: Day Care Industry Products and Services Segmentation

  • Demand Determinants
  • Labour force participation rate of women
  • Disposable income
  • Government subsidies

  • Major Markets
  • Two-parent households without grandparents
  • One-parent households without grandparents
  • Households with grandparents
  • Other households
  • Chart: Major Market Segmentation for the Day Care Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesProfitRent and utilitiesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Day Care

  • Basis of Competition
  • Price and quality of care
  • Location
  • Reputation

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Day Care Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Day Care Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Day Care Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Government expenditure and investment (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Canada Child Benefit (Cbb)
  • A tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age.
  • Child-To-Staff Ratio
  • Legal ratio mandated under provincial law for child care centres for the maximum number of children per staff member.
  • Nursery
  • Operators that provide child care for children under the age of four.
  • Occupancy Rate
  • The number of available spots in a given child care centre that are filled by children requiring care. A rate of at least 70.0% is necessary for a centre to be profitable.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Day Care market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Day Care:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Day Care market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Day Care, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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