A particularly bright spot in this business trend report is the output of the Personal Services sector, projected to be twice the anticipated growth rate of the other franchise lines.
Omaha, NE (PRWEB) March 15, 2010
The need for vital personal services, such as senior care, is helping to drive the growth in the nation’s franchise industry, results of a recent franchise industry report revealed.
The 2010 economic outlook for the nation’s franchise businesses forecasts a slow recovery with marginal increases in the number of jobs, economic output and the number of establishments, but the continuing credit crunch will limit the amount of growth that franchise businesses have seen relative to prior recoveries, according to the International Franchise Association (IFA)
A particularly bright spot in this business trend report is the output of the Personal Services sector, projected to be 4.4 percent or twice the anticipated growth rate of the other franchise lines at 2.2 percent.
Alisa Harrison, IFA communications representative, said that demographics and lifestyle are helping to drive the growth in personal services – a category that includes senior care as well as health and wellness companies. “Those issues represent the focus of so many Americans today.”
As an industry, franchising is expected to experience modest growth this year in spite of the country’s economic woes. “Our forecast is for output of all franchise business sectors to expand modestly in 2010 as the recovery takes hold,” said Drew Lyon, principal in PricewaterhouseCoopers LLP National Economics & Statistics practice
All 10 franchise business lines examined in the Franchise Business Economic Outlook for 2010 are forecast to see increases in the amount of economic output. In addition to Personal Services at 4.4 percent, Quick Service Restaurants (3.2 percent) and Businesses Services (2.6 percent) are forecast to see the largest percentage growth.
“Regardless of what the economy is doing, people need personal services,” said Yoshino Nakajima, Chief Development Officer of Home Instead Senior Care, among the nation’s top non-medical home care and companionship companies. “Senior care, for instance, is one necessity that families can’t live without. The safety and care of our older loved ones and family members does take priority for most families, even in an economic downturn.”
International Franchise Association (IFA) President and CEO Matthew Shay said that after the recession of 2000-2001, the franchise industry created more than 140,000 new businesses and 1.2 million new jobs over a five-year period. The February, 2008 Volume 2 of the Economic Impact of Franchised Businesses documented that franchising grew at a faster pace than many other sectors of the economy from 2001 to 2005, with annual output expanding by more than 9 percent annually.
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