After-School Program Providers in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) July 25, 2013 -- The After-School Program Providers industry is benefiting from strong community support and escalating demand as their core demographic expands. Yet, US unemployment has grown at a 5.6% annualized rate since 2008, peaking at 9.6% in 2010. In 2013, unemployment is expected to remain high at 7.6%. Unemployment has also limited revenue growth for federal and state governments. Federal funding through various grants and appropriations represents more than half of industry revenue, and cuts to funding across most government levels have contributed to industry revenue declining an estimated 0.3% per year on average since 2008, says IBISWorld industry analyst Caitlin Moldvay. Revenue is expected to continue declining 1.7% in 2013, reaching $2.3 billion.
According to the most recent 2009 survey conducted by the Afterschool Alliance, about 8.4 million children participate in after-school programs nationwide for an average of 8.1 hours per week. Despite the number of children in after-school programs having steadily risen from 2004 to 2009, participation has since stagnated with the onset of the recession. High unemployment allowed more parents to supervise their children instead of enrolling them in industry programs, mitigating growth in participation rates since 2009. To remain operational despite less government funding, most after-school programs are increasingly relying on volunteer labor and community support, continues Moldvay. The number of locations has grown an annualized 0.8% to 5,528 in the five years to 2013, reaching 5,528. However, industry employment has remained relatively steady and wages contracted at a 1.4% annualized rate during the period. There is a low degree of market share concentration in the After-School Program Providers industry. The Boys and Girls Club of America is the industry leader with the YMCA coming in second. However, the industry has a high number of non-employer establishments, given that the capital and labor costs required to set up an after-school program are relatively minimal.
During the next five years, rising government funding and a declining US unemployment rate are expected to support the After-School Program Providers industry. A continuing increase in the number of children enrolled in after-school programs will also benefit providers that charge membership fees. For more information, visit IBISWorld’s After-School Program Providers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry organizes youth programs that take place outside of the traditional school day. After-school programs can occur at various times of the day and in a variety of places, including the school building, community centers, libraries or parks. Activities include everything from sports and study groups to performing and creative arts. Some industry operators are exempt from federal income tax.
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, 310-866-5042, [email protected]
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