It's still very tough out there, of course, but there are definitely afew signs that the market may have stabilised and the worst may be over.After five years of over-supply, the trend in average occupancy levelshas been reversed to rise in the past year, according to Laing andBuisson's latest survey (see News, page 4).
Several big deals among the nursery chains also give cause for optimismthat they may be looking to expand once more. Kidsunlimited's managementbuyout team(NW, 17 April) has bold plans for opening up to ninenurseries a year; Bertram's acquisition of Holyrood is being accompaniedby a 20m expansion fund (NW, 24 April); and this week, we reporton Just Learning's 10m 'acquisition chest' (News, page 5).
The Analysis article in this issue of the magazine (pages 10-11) is alsorather more upbeat in its findings - as one nursery owner points out,recession could lead to parents who work part-time wanting to increasetheir hours.
Some big stumbling blocks remain, however, on the path to prosperity.Nursery Education Grant funding is still causing significant problemsfor private and voluntary sector nurseries, with little prospect of asatisfactory resolution despite the current cost-analysis exercise. Andthe whole complicated system of early years funding needs to be reviewedif the money is to have the impact it should for children, parents andproviders.