Thursday, February 19, 2009

SBDCNet Research: Daycares

SBDCNet Research: Daycares

For many parents, crayola-covered walls and orchestras limited to pots and pans bring to mind the thought, "maybe daycare isn't such a bad idea after all." Besides providing parents with a little time off, day care centers offer children under five years of age, an educational and fun environment while parents are at work. These benefits have helped drive the demand for child care in recent years though the supply of quality centers has yet to catch up.

When the Clinton administration’s welfare-to-work program was passed, thousands of mothers entered the workforce in the late 1990s. The limited availability of child care became clear as resources were stressed. As time went by, many employers found that a lack of child care is a barrier for qualified workers. Companies soon discovered that providing benefits by sponsoring child care centers in or near the office was a worthwhile investment resulting in increased in morale and decrease in absenteeism. However, the steady demand for such centers has yet to be fulfilled, leaving room for growth in the $21 billion market

For many parents, the thought of child care is alluring; however, they find themselves afraid to leave their child in the arms of a stranger. Recent developments in technology will help ease these fears and convince more parents to seek child care centers. One product, called “I See You,” allows parents to cyber visit their child’s day care room via the internet throughout the day. With the day care providers’ consent, a camera is placed in the center allowing still screens to be taking every 30 seconds that can be viewed online with an access code. 

There have also been new advances by cell phone providers, giving older children the ability to instantly establish a video connection with their parents at any time they wish. These increased safety measures will undoubtedly result in more parents participating in child care programs and even greater demand for the growing market. 

Resulting from such increased numbers of working parents and technological advances, the child care market is promising great yields. There is plenty of room for growth within the industry. In fact, the company with largest market share only boasts of 3%. It may be time to invest in these guardians of dirty diapers.


Click here to read the complete research report about Daycares.


Online Request for SBDC Counseling

No comments:

Post a Comment