III. Industry Analysis
The preschool industry has experienced significant growth in the past five years. The key industry drivers are economic growth, the rise in awareness of the benefits of early learning, and an increase in the number of families with both parents working. Further, government initiatives to support child care, rising corporate profits which enable companies to spend more on social benefits to employees, and awareness of the benefits of early child education, will drive growth.
The recognition that early education has an influence on child development has led the US government to turn its attention toward early learning. Government assistance programs range from childcare subsidies to programs. It is predicted that over the next five years, public funding will increase and thus, this is an important industry driver.
A rise in the population aged four years old will also be one of the major factors driving revenue over the next five years. This age group’s population is expected to rise at an annual rate of 3% over the next five years, thus driving demand for industry services.