Article Link: http://exchangepress.com/article/for-profit/5014332/
The second half of 2001 forced for profit child care providers in North America to confront some new realities. The deepening recession and the terrorist attacks of September 11th both contributed to changing priorities for child care providers:- The rise in unemployment during the recession has resulted in some softening of demand for child care services.
- The anxieties resulting from the terrorists attacks are causing parents, employers, and providers to be much more focused on safety issues.
Up until about August, the demand for child care services had been holding strong. As a result, even though there was a flattening of growth that occurred in the last four months of the year, on an annual basis, the for profit sector did register modest growth. The six largest chains (see "The Exchange Top 40"), for example, increased their licensed capacity by just under 4% in 2001. This continues a recent pattern of slow, but steady growth by the large national chains (see "Growth Histories of Six National Chains").
Impact of September 11
A few child care chains were directly impacted by the terrorist strikes. Knowledge Learning Corporation, Children's World Learning Centers, Bright Horizons Family Solutions, and ChildrenFirst operated centers directly adjacent to the buildings that ...