Understanding child care supply – MacroPlan has the answer!

Since the beginning of 2018, there has been a number of media reports discussing an oversupply in child care centres throughout parts of Australia and given that there have been more than 320 new child care centres opened around Australia during the past 12 months, it is not surprising to see why. However, it was only a couple of years ago when there were regular media reports of supply shortages.  The existing shortages and waitlists that parents were experiencing were expected to worsen as a result of an increase in national childcare subsidies which were forecast by the federal government to increase demand from 1.7 million children in 2016-17 to 2 million children by 2019-20[1].

So what will the supply situation be in 2020?  Will the market still be in oversupply, return to an undersupply, or find that happy medium between the two.

The point is, markets fluctuate and supply and demand conditions change.  As a result, the supply situation at a local community level is often very different to that portrayed by the general media.  This is what MacroPlan does – we look at the local community and analyse those specific socio-demographic and market conditions that determine the opportunity and success for child care.  Our approach is scientific rather than speculative and it is this approach that ensures that network planning and sequencing of new centres is strategic and has the greatest opportunity for success.

To better understand the markets that you have existing or planned child care centres in, please contact one of our experts on the office details below.

Mark Courtney - General Manager QLD 07 3221 8166

Daniel Parker - General Manager Gold Coast 07 3221 8166

Wayne Gersbach - General Manager NSW 02 9221 8166

Somma Sourivong - General Manager VIC 03 9600 0500

Stuart McKnight - General Manager WA 08 9225 7200

Joel Taylor - National Business Development Manager 03 9600 0500

[1] Numbers relate to subsidized childcare places (source: The Guardian, 02 Jan 2017)