Baby steps: Increased demand for child care has boosted revenue over the past five years

Community services organisations attend to millions of Australians annually, arranging care and counsel for those in need. Not-for-profit organisations and private enterprises in the Community Services subdivision are expected to earn $52.0 billion in revenue in 2017-18 from government funding, donations and private income. The subdivision is expected to grow at an annualised 7.1% over the five years through 2017-18, including anticipated growth of 5.9% in the current year.Demand for child care and aged care is expected to have increased over the past five years, as the average age of the population has risen and single-income households have increasingly sought to boost their earning capacity. Despite this, supply-side challenges have hindered growth over the period...read more.

Industry Statistics & Market Size
Revenue
$52bn
Annual Growth 13-18
7.1%
Forecast Growth 18-23
Profit
Employment
619,160
Businesses
15,994
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The ageing population and demand for child care are the major drivers of demand
  • Changes in government policy significantly influence subdivision revenue
  • The share of the population under 14 years is projected to grow, boosting demand for child care
  • Industry Report - Industry Analysis Chapter

    The Community Services subdivision provides child care services and ancillary healthcare services. While community services aren’t strictly linked to health services, they often provide services to similar groups, such as the elderly or infirm. A wealthy, ageing population and increased government funding has driven growth in aged care over the past five years. Growth in this industry has significantly expanded the subdivision overall, with revenue expected to total $52.0 billion in 2017-18.Subdivision revenue is expected to grow by an annualised 7.1% over the five years through 2017-18. This includes expected growth of 5.9% in the current year, driven by an increase in government funding and the continued rollout of the National Disability Insurance Scheme (NDIS). Sub...purchase to read more.

    Additional Insights for the Community Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Community Services Industry are

  • Effective cost controls
  • Must comply with government regulations
  • Ability to raise revenue from additional sources
  • IBISWorld analysts also discuss how external factors such as Total government expenditure on aged care services and Population aged 70 and older in the Community Services industry impact industry performance..

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    What's in this report

    What is the Community Services Industry?

    Community service providers offer largely ancillary services to health provision and social assistance programs, such as homes for the mentally ill or victims of substance abuse. Largely, these services provide greater opportunity for Australians to contribute to the economy or care for those that cannot. For example, childcare providers allow parents to remain in the workforce. The bulk of these services are offered through a combination of government and private funding.

    Industry Products
  • Personal welfare services
  • Child care services
  • Aged care residential services
  • Crisis and care accommodation
  • Industry Activities
  • Providing childcare services
  • Providing personal welfare services
  • Providing crisis and care accommodation
  • Providing aged-care accommodation including nursing homes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total government expenditure on aged care services
  • Population aged 70 and older
  • Real household discretionary income
  • Females in the labour force
  • Population aged 14 and younger

  • Current Performance
  • Pressure on providers
  • Funding trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong fundamentals
  • New reform challenges
  • Table: Community Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Community Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Employment Placement and Recruitment Services
  • Real Estate Services
  • Religious Services
  • Supermarkets and Grocery Stores

  • Products & Services
  • Aged care residential services
  • Personal welfare services
  • Child care services
  • Crisis and care accommodation
  • Chart: Community Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 65 and over
  • Families, youth and children
  • Other welfare recipients
  • Chart: Major Market Segmentation for the Community Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Community Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Community Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Community Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Community Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Child Care Rebate
  • The Child Care Rebate helps towards out-of-pocket childcare expenses and is paid in addition to the Child Care Benefit.
  • National Quality Standard
  • A standard that sets out a new national benchmark for the quality of children's education and care services.
  • Respite Care
  • Short-term substitute care that enables carers to take a break. Care is provided in the home, in day centres or residential aged-care facilities.
  • What Our Customers Say

    Why buy this report?

    The Community Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Community Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Community Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Community Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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