"Even though the economy was shaky in 2008, we managed to keep growing. As we look ahead to 2009, and an even shakier economy, we are holding off on any expansion until we see how deep and long-lasting this downturn will be."

This observation, by the CEO of one of North America's largest for profit organizations, pretty much sums up current developments in the entire for profit sector. The good news is that despite a slowing economy, many larger for profit organizations managed to expand last year. In fact, in 2008, 22 of the 25 largest organizations surveyed in our report on the Top 40 For Profit Child Care Organizations in North America (see Exchange Top 50 on page 24) increased the number of centers they operate. Most notably :

• Nobel Learning Communities added 28 centers (19% increase);
• ChildCare Network added 13 centers (9% increase);
• The Sunshine House added 10 centers (7% increase);
• Children's Choice Learning Centers added 12 centers (57% increase);
• Children of America added 8 centers (50% increase);
• Tot-Time Child Development Centers added 6 centers (29% increase);
• Goddard Systems franchised an additional 64 centers (24% increase).
Ownership changes

During 2008, the second and third largest for profit organizations experienced changes in ownership…

• ABC Learning, Learning Care Group's Australian parent organization, needed to raise a significant amount of capital earlier in the year. As a result in June, Morgan Stanley Private Equity purchased a 60% stake in the Learning Care Group.
• In May of 2008, after ten years as a publicly traded company, Bright Horizons Family Solutions once again became a private venture. This was made possible through an investment by Bain Capital, which was one of the original investors in Bright Horizons as a start-up 20 years ago.

Quality enhancement efforts and recognition

This year many of the organizations we surveyed shared with us stories of efforts they are making to enhance the quality of their programs or about awards they had received or passed out in recognition of quality initiatives. Here are just a few examples of the types of initiatives taking place . . .

• In April 2008, Creative Playrooms celebrated its 40th year in business.
• In January 2008, Bright Horizons Family Solutions launched an eCDA program through its online university and training center.
• Brightside Academy (featured on the cover of this issue) maintained its momentum in actively pursuing accreditation of its centers in Pennsylvania and Ohio.
• KLC awarded five exceptional
teachers with $10,000 for distinguished education practice in their work.
• Three of the Pinecrest Schools have now received the NCLB Blue Ribbon School of Excellence award.

Looking ahead . . . with anxiety

We surveyed CEOs of the Top 50 organizations to determine what challenges they are currently facing (see "The Dirty Dozen" on page 23); the top three, and eight of the top 12, concerns all had economic implications.

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