Wednesday, September 10, 2008
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'Child care is a growth industry'
Despite bad economy, pricey early-learning centers fill up
fast, flourish in central Ohio
By Braden Lammers
Spots at reputable child-care centers in central Ohio can be
hard to come by, seemingly regardless of the cost. Dublin's
Primrose School has a waiting list for infant care until the fall of
2010.
Young classmates work with franchise co-owner Carmen
Caldwell during a crafts class at the Primrose School in Dublin.
They might give up their morning latte and take the bus
instead of the car, but parents aren't inclined to scrimp on child
care.
That's good news for early-childhood development centers,
particularly in markets such as central Ohio, whose "premium"
centers typically have long waiting lists.
The climate is strong enough to keep new players expanding
into the market.
"(Parents) definitely want the best for their child," said
Carmen Caldwell, a co-owner of the Primrose School franchise in
Dublin. "It's a high priority in their lives."
In Franklin County last year, there were 55,694 children
younger than 6 with both parents in the work force, according to
an Ohio Child Care Resource & Referral Association report.
The full-day capacity for child-care centers in the area is
32,826 spots.
The report shows that 31 new centers were added to the
state's database in Franklin County, and in the past fiscal year,
334 new child-care providers were licensed by the Ohio
Department of Job and Family Services statewide.
The numbers translate into business potential.
Primrose Schools, headquartered in Atlanta, is one of the
chain child-care providers expanding in the Ohio market.
The company's first central Ohio location opened in Dublin in
April 2006. Since then, Primrose has opened locations in Powell
and Gahanna, and the company plans to open seven more in the
area within the next five years.
But Primrose is not the only company seeing the benefits of
high demand in central Ohio. Several Montessori schools, 16
Goddard Schools and 35 KinderCare Learning Centers operate in
the area.
Goddard Systems Inc. is not planning any new locations in
Columbus right now, but it is on track with its overall growth plan
to open 50 schools per year, marketing manager Lisa Fisher said.
KinderCare, based in Portland, Ore., is operated by the
Knowledge Learning Corp. and is one of the largest child-care
companies nationwide. In 2006, the company generated more than
$1.5 billion in total revenue.
The company plans to open three locations near Cleveland
this year and is currently planning on opening about 30 centers
nationwide during 2009.
Primrose, a much smaller franchised corporation, is expected
to reach $275 million to $280 million in revenue this year, said
Paul Thaxton, vice president of brand management for Primrose.
The Dublin location alone expects to make nearly $2 million
and has a waiting list for the infant classroom until the fall of
2010, Caldwell said.
The revenue and growth for the companies are evidence that
parents are more than willing to pay for child care, even if the
costs strain their budgets.
"Because this is such an important family decision, people are
willing to give up a lot of luxury items," Thaxton said. "They will
work to keep their investment."
In Franklin County, the average full-time child-care cost for
one week is $206.41 for an infant and $156.99 for a preschooler,
according to the child-care supply and demand report.
Based on the median family income in Franklin County, the
cost of full-time care for an infant and a preschooler consumes
more than 35 percent of the family's weekly budget. With one
infant, it's nearly 20 percent.
The costs and the weak economy have prompted many
parents to seek assistance with paying for their child's care.
About 10 percent of parents use need-based scholarships that
can cover up to 50 percent of the cost, said Tammy Chabria,
principal and owner of Jane's Montessori.
Aid for parents includes a state-sponsored Early Learning
Initiative program, the privately funded Champion of Children
program available through Montessori schools and fundraising
efforts by individual child-care centers.
The request for assistance is becoming more frequent,
Chabria said.
Despite the increase in need, providers have not seen a
substantial impact on business.
"This summer we definitely dropped a little bit, but we really
haven't been hit real hard by (the economy)," Caldwell said.
The outlook for long-term growth isn't taking a hit, either.
"There continues to be a shortage of infant and toddler care,
and for high-quality child care," said David Lissy, CEO of Bright
Horizons Family Solutions in an interview with Exchange
magazine. "In addition we see an increased demand as baby
boomers will continue to age out of the work force.
"I believe the demand for high-quality care and early
education will continue to be strong over the next 10 years," he
said.

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montisorry, Columbus Ohio,
OH, Pre-School, preschool,
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"Our aim is not only to make the child understand, and still less to
force him to memorize, but so to touch his imagination as to enthuse
him to his innermost core."
~ Dr. Maria Montessori
Child Care as a Growth Industry in Columbus, Ohio
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