Golden age: An ageing population is driving funding growth for industry operators

Community services organisations attend to millions of Australians annually, arranging care and counsel for those in need. The Community Services subdivision’s not-for-profit and private enterprises are expected to raise $50.6 billion in revenue in 2016-17, derived from government funding, donations and private income. The subdivision is expected to grow at an annualised 7.8% over the five years through 2016-17, including anticipated growth of 7.6% in the current year.As the population ages and single-income households look to boost earning capacity, demand for childcare and aged care will accelerate. While these trends bode well for subdivision participants, many are subject to supply-side challenges...read more.

Industry Statistics & Market Size
Revenue
$51bn
Annual Growth 12-17
7.8%
Forecast Growth 17-22
Profit
Employment
604,167
Businesses
30,781
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 childcare services are the major drivers of demand
  • Changes in government policy can have a significant influence on subdivision revenue
  • The share of the population under 14 years is projected to grow, boosting demand for child care
  • Industry Report - Industry Products Chapter

    Almost 40% of revenue generated by the Community Services subdivision is derived from providing aged-care accommodation, including nursing homes and other aged-care accommodation facilities. Aged-care services are among the more expensive services provided by the subdivision. Hence, an increase in aged-care accommodation patronage is likely to affect revenue more than an increase in childcare. While some community services, such as crisis care and personal welfare services, depend on economic and cyclical factors, others, such as aged care and childcare, rely more on demographic trends. Of the four contributing industries, the Child Care Services industry has posted annualised growth rates well in excess of the subdivision over the past five years. Thi...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

  • High costs can make operations unsustainable
  • Regulations accompany funding
  • Extra funding sources can be pivotal
  • 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
  • Childcare 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
  • Childcare 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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.
  • High-Level Care
  • Care for people that require almost complete assistance with most daily living activities.
  • Low-Level Care
  • This is provided by aged-care facilities for those people requiring accommodation, meals, laundry and some help with personal care.
  • 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?

    IBISWorld’s Community Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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