What lies ahead for the early education industry?

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4 mins

The holidays are a distant memory and your childcare business should be back in full swing after the Christmas break. It’s time to start thinking about the year ahead and planning to make 2023-24 the best year yet for your childcare business. First of all, it’s important to look back to understand what’s happening now, and help you plan for the next one, two or five years.

If you’ve been in the childcare industry for a while, you’ll have experienced mixed results over the past five years. Early on in the period, higher government spending, rising enrolment numbers and higher fees drove revenue growth. However, an increase in new childcare facilities outpaced demand in many areas, which led to reduced occupancy through 2018-19. 

COVID’s impact on the childcare industry

The global pandemic provided new challenges for operators and will continue to affect the industry over the next five years. 

As they adapt to a new post COVID world, some families may demand more flexible childcare options. Others may re-evaluate the perceived value of formal child care services once fee-free childcare as part of the government’s COVID-19 economic response plans are removed. Low centre occupancy rates and staff shortages continue to hinder the industry, but overall, the outlook is positive.

Be ready for further growth

With the government making equitable and affordable childcare one of its signature policies, further changes for the industry are on the cards. Higher rates of workforce participation for mothers and increased government funding in the pipeline will contribute to steady growth over the next five years.

In line with this growth, and higher staff-to-child ratios, childcare industry employment numbers are projected to rise. Labour shortages are likely to continue and wage costs are projected to continue rising, as childcare professionals upskill and industry operators seek to attract and retain staff. This cost increase will put pressure on profit margins, particularly for smaller operators. 

How can Ezidebit help?

People who work in childcare and early education are special individuals. It makes sense to ensure staff can make the best use of their qualifications and training. This includes spending less time punching numbers and more time creating rich, meaningful, learning experiences for our kids. 

This is where the right technology partners can make a big impact on your bottom line. At Ezidebit, childcare and early education are at the very foundation of our existence. We were founded 24 years ago by a childcare centre owner so we understand there’s a lot going on in the background of your business. 

You can combine any of our five solutions to make sure you’ve got a payment system for everyone. Busy parents can often mean missed payments. Make their lives easier with automatic direct debit payments and keep ahead of changes to government childcare subsidies with a customised payment system that’s responsive and user-friendly. 

Looking to grow your childcare business? 

Our solutions are designed to scale with you as your business grows.

The Ezidebit system lets you create flexible, fully-customised payment options to suit all families, regardless of their needs. Whether it’s set-and-forget direct debit, or monthly BPAY invoices, we have the right match for every family’s finances.

Get in touch to find out how Ezidebit can help your childcare business.
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