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Large For Profit Organizations Growing Slowly

by Roger Neugebauer
January/February 2013
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Article Link: http://www.childcareexchange.com/article/large-for-profit-organizations-growing-slowly/5020969/

For 26 years Exchange has been tracking the status of the largest for profit child care organizations in North America. During this period these organizations have grown tremendously. However, in the past four years, the 50 largest for profit companies and the 10 largest for profit franchise operations have increased their total licensed capacity by just under 5%.

To take a closer look at this growth rate, Exchange analyzed the changes since 2009 in various for profit sectors. We compared growth rates of . . .

• National Chains " the five largest for profit child care organizations in North America.
• Regional Chains " 10 organizations operating in multiple states with total licensed capacity between 7,000 and 24,000.
• Local Chains " 20 organizations operating in one or more metropolitan areas with total licensed capacities of less than 7,000.
• Franchise Enterprises " five organizations providing franchises to individual operators of child care centers.

National Chains

As you can see in the chart, Comparative Growth Rates of For Profit Sectors, the national chains have not grown since 2009. In fact, the combined licensed capacity decreased by nearly 4% during this period. This had a major impact on the overall growth rate described in the opening paragraph, as ...

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