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Residential Nursing Care in the UK Industry Market Research Report Now Updated by IBISWorld
Date:8/28/2013

London, United Kingdom (PRWEB) August 29, 2013

The Residential Nursing Care industry provides accommodation and intensive nursing care for those in need. People aged 65 and over constitute the largest market for these services, since residential nursing care becomes increasingly necessary as old age takes its toll. This means that the ageing of Britain's population suggests demand for the industry's services will rise. Strong growth in the number of establishments over the past five years provides evidence that demand has already expanded strongly. This is a trend that is expected to continue over the five years through 2018-19.

Despite solid demand, industry revenue has not grown substantially, managing meagre compound annual growth of only 0.2% in the five years through 2013-14. The current year is expected to close with industry revenue of £5.7 billion – a decline of 2.0% on 2012-13. This is the result of government spending cuts. According to IBISWorld industry analyst Robert Scotton, “as the government has sought to tackle public debt levels, the public sector, the largest consumer of the industry's services, has placed sustained downward pressure on industry revenue”. Prices have been kept artificially low and operators have been compelled to absorb more than their fair share of costs. Profit has suffered and some major players have been forced out of the industry as a result. Scotton adds, “enterprise consolidation is expected in the next five years as government cutbacks bite deeper still”. There is no foreseeable respite, so revenue projections remain stubbornly flat over the five years through 2018-19.

Operating conditions have been hampered by bad press and legislative uncertainty. In 2012, the BBC
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