Global childcare report reveals market buoyancy

Specialist business property adviser, Christie & Co, analysed and compared the impact of the pandemic on five Early Childhood Education and Care (ECEC) markets in the United States, United Kingdom, Germany, Sweden and Australia.

It found that the pandemic has ‘undoubtedly’ raised the profile of the sector, giving providers and practitioners the long overdue recognition they deserve.

The report states, ‘With a wider awakening and awareness of the importance of high-quality ECEC provision, comes new interest from prospective investors which adds to the demand from private equity, high-net-worth individuals, and philanthropic investors, all of whom face direct mergers and acquisitions competition from a wider range of ECEC trade buyers.’

As well as looking at acquisition sentiment during the pandemic, Christie & Co made market predications for the remainder of 2021 and beyond.

Courteney Donaldson, report author and managing director at Christie & Co, said, ‘It’s brilliant to see many governments across the world finally crediting the vital work provided by ECEC providers, with many publicly applauding the dedication and collaboration of ECEC providers and the entire global ECEC workforce.

‘Global ECEC markets have seen much interest and activity during recent years, with value growth and prices indices having moved forward year-on-year since 2016. The pandemic has notably raised the profile of the sector, resulting in continued movement and market transactions across the global ECEC business property market throughout the pandemic.’

Workforce issues

The effect of Covid-19 on fiscal support packages; birth and population rates; ECEC global market macro and micro factors, alongside demand, supply, and political stability was also analysed.

Researchers found that providers encountered similar workforce and occupancy challenges due to self-isolation requirements and reductions in occupancy. These arose mainly because of parental nervousness during Covid-19; increases in unemployment and, in some cases, regulatory restrictions imposed on operating capacities and staffing ratios.

The report also highlights concerns relating to financial sustainability and the well-being of the global ECEC workforce, as well as the wellbeing and developmental gaps in children’s attainment levels.

Unemployment rates