London, United Kingdom (PRWEB) September 24, 2012
There is a statutory duty on local authorities to provide residential accommodation for people in need of care. The Elderly & Disabled Residential Care industry is expected to generate revenue of £5.84 billion in 2012-13, a decline of 2.5% from the previous year and representing about 40% of total expenditure on residential care in the United Kingdom. Industry revenue is expected to decrease by an annualised 4.7% in the five years through 2012-13. According to IBISWorld industry analyst Nigel Fitzpatrick, “there will be a decline in the number of residential care places for the elderly and people with disabilities, falling by about 0.3% per annum due to personal and government preferences for people to stay in their own homes for as long as possible”. Since 2009-10, revenue has been hit by low increases in fees resulting from pressure on government and household budgets.
Industry revenue is forecast to decrease slightly in 2013-14 before returning to marginal growth. This will result in a marginal annualised increase in the five years through 2017-18. Government funding pressures will adversely affect industry profitability and demand for residential care. Fitzpatrick adds, “more people will chose to use home care services to avoid entering residential care and there is an incentive for governments to help people stay at home, rather than enter costly residential care”.
The Elderly & Disabled Residential Care industry exhibits a low level of market share concentration, with the top four organisations accounting for about 6.0% of total industry revenue. The largest operators in the industry have grown through acquisition and hold large market share positions relative to other players, which include a large number of very small operators. However, it appears that larger players tend to concentrate on providing nursing care. Major companies include Four Seasons Health Care, Barchester Healthcare and HC-One.
For more information on the Elderly & Disabled Residential Care industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes the provision of residential and personal care services for the elderly and disabled who are unable to fully care for themselves or who do not desire to live independently. The care typically includes a room, board, supervision and assistance in daily living such as housekeeper services. In some instances, firms classified to the industry also provide skilled nursing care for residents in separate on-site facilities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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