U.S.
CHILD DAY CARE SERVICES, NANNY & AU PAIR AGENCIES: AN INDUSTRY ANALYSIS
4th Edition (March 1998)
TABLE OF
CONTENTS
PAGE
Introduction - Study Scope, Methodology, Sources Used 1-5
Executive Overview & Major Findings ($175) 6-27
* Major report findings, the
demand for child care, key issues and trends affecting
the industry, quality indicators, fees, market size/growth
(1982-2003 forecast),
industry structure--discussion of and no. of major provider
groups, demographics,
employers’ role, political outlook, key operating ratios,
industry balance sheet/profits,
avg. expenses by kind, list of major competitors
The Political And Legislative Outlook For Child Care ($75) 28-34
* Current outlook & Clinton
proposal, federal spending on child care related services
for 1980-1992, welfare reform’s effects
* Table: top 10 states for
funding Pre-K programs
* IRS child care tax credits -
description and discussion of, table: 1980-1995 value
of credits, returns filed
* Summary/history of sudsidized
child care--Head Start, Social Services Block
Grants, Family Support Act, federal budget for child care,
reimbursement
accounts, proposed news standards
Day Care Quality Issues ($75) 35-40
* Discussion of recent studies and
indicators of quality, staff salaries and turnover,
staff/child ratios, best states for day care, safety - injury
rates by type center/provider
facility, top parent definitions of quality, supply of child
care, accreditation, (info.
from: Families & Work Institute, Working Mother mag.,
etc.)
* Table: Infant/Toddler
Environment Rating Scale (NAEYC)
The Cost of Child Care - Fees ($75) 41-47
* Gov’t. Census vs. private sector
data: 1993/1991 avg. fees, May 1996 weekly fees
in 7 major cities, by age of child (1991,94,96)), latest
Census survey findings (avg.
costs by: no. of kids, family income, race, city/suburbs, type
provider), avg. tuition
at major for-profit chains, NAEYC 1991 survey: hourly fees by
type facility
* Table: Weekly child care costs
for families with employed mothers (1985-1993)
PAGE
Demographic Factors Affecting The Industry ($150)
48-76
* Discussions of U.S. annual birth
rates and the "baby boomlet", social
trends, shifting family/work patterns, female workforce
participation
rates
Highlights of 1996 Census
survey: “Who’s Minding Our Preschoolers?” 49-55
Analysis & discussion of these
topics…
- Share of preschoolers cared for
by relatives while mothers at work
- How child care arrangements have
changed dramatically last few years
(family day care vs. for-profit centers)
- Mothers working night shifts
- Mothers working part-time
- Black & Hispanic vs.
White mothers’ use of relatives
- Relatives’ role providing care
in poor families
- Popularity of group centers
related to city/suburb and region
Tables:
* Primary child care arrangements
of preschoolers, by mother’s work status: 1993
* Child care arrangements for
preschoolers, by poverty status: 1993
* Primary child care arrangements
used by families with employed mothers: 1993
* Changes in child care
arrangements: 1988-1993
* Primary child care arrangements
used by families with employed mothers, by:
race, age of child, marital status, age/education of mother,
family income, city
vs. suburbs, region, etc.): 1993
Highlights of 1991 Census
Report: “Who's Minding The Kids? 55-63
* Summary & analyses of major
findings - preschooler trends, organized child care
arrangements, parents’ work schedules and care, costs,
1977-1991 long-term trends,
variations by marital status of mother, characteristics of
organized facilities, arrange-
ments by mother’s/father’s employment status, reasons for
changes in arrangements,
regional data
Table & Charts: 64-76
* Primary child care arrangements
used by employed mothers for children under 5
yrs., by age of child (Fall 1991)
* Reasons for changes in child
care arrangements (Fall 1991)
* Primary child care arrangements
used by employed mothers for children under 5 yrs.
(selected periods, 1977-1991)
* Primary child care arrangements
used by employed mothers for children under 15 yrs.
(Fall 1991)
* Primary child care arrangements
used by employed mothers for children under 5 yrs.,
by: mother’s race, education, occupation, family income,
region, etc. (1991)
* No. of children of employed
mothers using secondary child care arrangements, by
age of child & type primary care arrangement (1991)
Demographic Factors Affecting The Industry (continued) PAGE
Tables:
* Percent of kids reported to be
in self care while mother is at work, by age
of child (1991)
* Primary child care arrangements
of children under 15 yrs., by type work shift
of parent’s principal job - by mother’s employment
status (1991)
* Primary child care arrangements
used by dual-employed parents (1991)
* Weekly child care expenditures
paid by families (1991)
* Weekly child care costs of
employed mothers when payments are made separately
for each child (1991)
Industry Structure, Market Segments, Competition ($250) 77-97
* Summary & discussion of
provider groups (family day care homes, group centers,
gov’t. agencies, church & hospital & college-based
facilities, by military, YMCAs,
employer programs): no. of each in U.S. as of 1997, no. of
taxable/exempt services
* No. and characteristics of child
care workers - weekly and hrly. earnings, turnover
rates, definitions of 3 major kinds of workers
* Family day care--description of unregulated vs. regulated
homes/providers,
no. of licensed homes 1983-97 (Children’s Foundation), states
using
licensing/registration, reasons for recent growth, results of
NAEYC study,
no. of children served, competition with other provider
options, parents'
reasons for choosing family day care/specific home, etc. 79
* Descriptions of: government
programs, Military base programs, community groups,
colleges
* Organized center-based care: discuss. of for- and nonprofit
centers, top 6 chains
and estd. revenues relative to total industry, selected
findings of 1997 Furman Selz
study, franchising activity in the industry (reasons why not
more prevalent) 85
* Employer-provided child care - major unions with child care
programs 88
* Trends affecting competition & industry structure: factors
contributing to shift
toward more center-based care, , opinions of Merrill Lynch,
Labor Dept., states with
highest/lowest percentages of center-based care 89
* Typical center size,
operating expense breakdown, profit margins 91
* Role of venture capitalists and
entrepreneurs in the industry - today and early 1990s
vs. late 1980s, shifting requirements, name/address of venture
capital firms active in
day care, concerns over potential multi-tiered system (affluent
high-end services vs.
low-income markets)
92
Tables:
94
* Type of regulations/requirements
for group (large) family day care homes,
by state
* The Nation’s 50 Largest For
Profit Child Care Organizations
* The Nation’s 50 Largest
Child Care Facilities
PAGE
Nannies and Nanny Agencies ($175) 98-109
* Overview of the profession,
parents’ surveillance of nannies while working,
no. of nannies working in U.S., their salaries, no. of annual
placements by
agencies, typical experience/training vs. Au Pairs, weekly
salaries in 5 cities
sample, how nanny agencies operate, major trade
associations/networks, current
tax laws and regulations, address/description of: Intl. Nanny
Assn., Alliance of
Professional Nanny Agencies
* Company Profile: Starkey
Intl.
* Directory of 130 nanny agencies
listed in national Yellow Pages
Au Pair Agencies: A Business Under Fire ($150) 110-115
* Overview: evolution of a child
care niche, how the Au Pair agencies operate,
(hours worked, screening/selection process, sponsoring
organizations), fees,
industry growth since 1986, value of the market, problems
(Louise Woodward
abuse court case), the USIA, address list of the 8 certified Au
Pair placement
agencies
Employer-Sponsored Child Care Programs-Status Report ($125) 115-126
* Summary/discussion of no. of
firms offering programs in U.S, why demand is
increasing, industries most likely to have facilities,
description of American Business
Collaboration for Quality Dependent Care, typical benefits
offered, start-up costs
* Discussion/explanation of:
consortiums, reimbursements, voucher programs, info. and
referral, counseling, flexible work practices, reasons why
employers don’t have
programs--costs, fears about liability issues
* Labor Dept. 1994 survey on
employee benefits - no. of workers eligible for child
care assistance, by type occupation
* College/University-based day care:
estd. no. with on-site facilities in the U.S.,
services offered, costs, management of
* Top for-profit companies
competing in on-site employer day care (Kinder Care,
Corporate Family Solutions, others)
* Future trends: Projections to
2000 for benefits expected to be offered
Tables:
* The Nation's 15
Largest Employer Child Care Management Firms
(name, location, capacity, centers)
Church-Based Day Care Services ($50)
127-130
* Findings of Child Care Info.
Exchange status report: number of
churches
with facilities, operating characteristics, motives, type
children served,
states offering full/partial exemptions, restrictions &
obstacles
Table:
* The Top 20 Religious
Organizations Housing Early Childhood Facilities
(no. of: members, churches, centers)
PAGE
Hospital-Affiliated Day Care ($40) 131-133
* Discussion of findings of 1989
NAHACCP assn. survey (latest avail.) - number
of centers, states with greatest number, no. of kids enrolled,
avg. capacity,
population groups served, characteristics of centers
Size & Growth Of The Industry ($175) 134-142
* Summary of total market and its
subsegments, comparison of industry
revenue data by: Census Bureau, Service Annual Survey,
competitors, B.L.S.,
IRS, Scholastic Inc.--private vs. public sector sources),
historical “baseline”
figures and extrapolations
* Value of industry receipts
from annual Dept. of Commerce surveys (1986-95),
taxable & tax-exempt services, total
* IRS tax credits: no. of returns
filed & value of child care credits (1970-1995)
* Summary of 1994-97 sales growth
of top 5 for-profit chains, historical growth of
receipts as reported via gov’t. surveys
* Marketdata estimates of industry size from 1982-2003 forecast,
rationale
Economic Operating Performance & Key Ratios ($250) 143-173
(1982-92 Census data)
* Summary & Analyses (1992 vs. 1987 5-year changes) - discussions of day
care services by.... legal form of company, concentration levels, single
vs. multi-
site companies, centers by revenue size of facility, centers by
revenue size of
firm, national/state distribution of child care centers (top
states' share of
U.S. sales), growth in no. of services & receipts for top states,
5-year industry
composite balance sheet and profitability trends 143-50
Tables:
* Day care centers, by legal form of organization: no. of
centers, receipts,
payroll as % receipts (1992, 1987)--corporations,
proprietorships, partnerships
151
* Industry concentration (share of mKt.) -- top 50 firms (1992,
1987):
no. of centers, receipts, payroll as % sales, top 4, 8, 20, 50
firms 152
* Day care services, by single vs. multi-unit firms (1992,
1987): no. of centers,
annual receipts, payroll as % receipts, 1-10 or more
facilities (taxable, exempt) 154
* Day care services, by receipts size of facility (1992,
1987): classes under $10,000
to $10+ million, no. of centers, receipts, share of receipts,
payroll as % receipts
(taxable, exempt services)
156
* Day care services, by annual receipts size of firms (1992,
1987), receipts from
$100 million to less than $100,000: no. of firms, centers,
annual sales, payroll, no.
of employees (taxable, exempt) 160
Economic Operating Performance & Key Ratios (continued) PAGE
* Number of day care services by state (1992): no. of services,
receipts,
avg. receipts per service (taxable
services) 162
* Number of day care services by state (1992): no. of services,
receipts,
avg. receipts per service (tax-exempt)
164
* Top 300 metro areas: no.
of child care services & receipts (taxable) 166
* Top 300 metro areas: no.
of child care services & receipts (tax-exempt) 169
* Composite industry Balance Sheet
& Income Statement: 1990-94
172
Profiles Of The Leading For-Profit Day Care Center Chains ($195) 174-200
(In-depth profiles, covering:
5-year sales/profits, company structure, operation
of centers, description of programs offered, tuition rates,
marketing activities,
recent acquisitions, hdqtrs. address/website, etc. for each
company below)
* Children's Discovery Centers of America 174
* Children's World Learning Centers 179
* Childtime Learning Centers 181
* Kinder-Care Learning Centers 186
* LaPetite Academy
191
* Nobel Education Dynamics (formerly Rocking Horse C. C.
Centers) 196
Reference Directory Of Industry Trade Associations,
Journals,
Consultants, Other Sources ($50)
201-206
* List of child care and education
trade associations, journals -- address,
phones, contacts