Industry & Competition Analysis

Daycare & After-School Care in Terrace, BC 

Introduction 

The childcare sector in British Columbia is expanding rapidly, supported by major government investments through programs like ChildCareBC and CWELCC, which aim to increase licensed spaces and lower parent fees. BC plans to add 70,000 new spaces by 2028, reinforcing childcare as critical to economic and workforce participation (Government of British Columbia, 2023; Government of Canada, 2021). 

In Terrace, demand is strong and growing. Since 2018, over 350 licensed spaces have been added in the region, including 136 in Terrace (Government of British Columbia, 2024). Yet, gaps remain—especially in infant care, flexible full-day programs, and after-school care. A city-run afterschool program launched in 2023 filled its 30 spaces immediately, with a waitlist forming soon after, showing how eager families are for quality care options (City of Terrace, 2023; Terrace Standard, 2023).  

Strong government support and community demand make Terrace a promising location for a new daycare and afterschool center.  

Competitors: 

Direct competitor Indirect competitor Substitute competitive 
Tiny Steps Daycare Private babysitters Family care 
Centennial Christain Preschool & After school  School based programs Parent flexible schedule 
Sunflower Childcare center Terrace Child Development Centre Activity clubs 

Key suppliers to a daycare in Terrace 

Key suppliers of the daycare business in Terrace include furniture and equipment retailers such as Canadian Tire, Walmart, and Kandolas Furniture. Toys and learning materials are typically sourced from Mastermind Toys and Toys“R”Us. Food and snacks are supplied by Safeway, Save-On-Foods, and local wholesalers. Stationery and office supplies are procured from Staples, Amazon, and Walmart, while technology and communication needs are met through Best Buy, Amazon, TELUS, and Rogers. Health and safety supplies, including first aid kits, come from Shoppers Drug Mart and London Drugs. Insurance services for liability and property coverage are provided by Wetland Insurance and Western Financial Group Inc.  

4ps Comparison Daycare/after school center in Terrace Bc.  

4Ps Sunflower Child Care center Centennial Christian Preschool & After school care Tiny Steps Daycare 
Product Licensed daycare+ afterschool; structured play; early learning activities Licensed preschool, activities include creative art, stories, outdoor play. Licensed childcare; focused on activity-based learning; after school crafts outdoor play, enrichment 
Price Standard terrace market rate, full/half day fees; registration late fess They accept BC affordable childcare benefit Slightly higher (premium program) standard fees and penalty. 
Place 2803 Cramer Street, Terrace Bc 3608, Sparks Street, Terrace BC V8G 2V6 4927, Agar Avenue Terrace BC 1H8 Canada. Dedicated childcare facility, larger space 
Promotion Mostly reputation and word of mouth, minimal online presence Sibling/family discount, payment option, word of mouth. Facebook ads, word of mouth 

SWOT Analysis of Competitors 

Competitors Strength Weakness Competitive Edge 
Centennial Christian Preschool & After school care  Licensed with subsidy programs experienced staff, community centered. The daycare’s daily service is limited to three hours, which may not meet the needs of working parents. Long waitlist, less flexible Our competitive edge lies in offering extended daily care, flexible schedules, parents addressing gaps in the current daycare market that competitors have not fully covered 
Sunflower Childcare center. Welcoming space, interactive learning activities. Loyal customers Limited capacity and resources Offering afterschool tutors, help with assignments, and enrichment activities to support academic and personal growth. 
Tiny Steps Daycare Activity based, engaging programs Higher fess Parent Engagement & Communication; implement easy-to-use updates and communication platforms so parents stay informed and involved in their child’s progress. 

Competitive Advantage of Rainbow Haven Center 

In-Person Tutoring Services 

There is a clear gap in local tutoring options in Terrace, with many parents relying on online programs that often lack personal engagement—especially for students struggling in subjects like math and science. 

Rainbow Haven fills this gap by offering in-person tutoring as part of our afterschool program, providing targeted support in core subjects. This convenient, integrated service reduces screen time, supports academic growth, and offers parents a trusted, all-in-one solution for both childcare and education. 

By combining quality care with academic support, Rainbow Haven stands out as a holistic, value-added option for families in our community. 

Targeting Newcomer and Underserved Markets: 

In Terrace, many newcomer families face challenges accessing daycare and afterschool programs due to long waitlists and a lack of clear information. As families move to the area for work or school, they often struggle to find safe, reliable childcare during their daily commitments. 

 Rainbow Haven positions itself as a welcoming, accessible option for these underserved families. We will actively partner with Skeena Diversity, the leading support hub for newcomers in the region, to distribute informative brochures and raise awareness about our services. 

By connecting directly with newcomer families through trusted community channels, Rainbow Haven becomes a go-to childcare solution for those who need support the most—setting us apart through cultural awareness, accessibility, and community engagement. 

Barriers to entry in the daycare/after school industry 

Operating a daycare or afterschool program in British Columbia requires compliance with strict government regulations under the BC Child Care Licensing Regulation. These include meeting facility safety standards, maintaining specific staff-to-child ratios, employing certified Early Childhood Educators (ECEs), and undergoing regular inspections. The licensing process itself can be lengthy and resource-intensive, requiring significant planning and investment. In addition, there is a well-documented shortage of qualified ECEs across the province—particularly in Terrace—making staffing a major operational challenge. Providers like Paces Daycare have reported reduced capacity due to the inability to hire sufficient staff. Recruiting and retaining trained educators is not only competitive but also costly, with average wages in Terrace around $29.77 per hour. Economic pressures also play a significant role; many families are sensitive to price changes, and the introduction of government-subsidized $10-a-Day childcare centers has created uneven competition. New, unsubsidized providers may be perceived as less affordable, even if they offer comparable or superior services. Furthermore, long-standing providers benefit 

from strong community loyalty. Families often remain with the same daycare from toddler age through afterschool care, especially when multiple siblings are enrolled. This creates long-term customer relationships that can be difficult for new entrants to disrupt. 

 Forecast for future growth or decline 

Drivers of growth 

Government funding and policy support are driving significant growth opportunities in the licensed childcare sector. Programs like ChildCareBC and the Canada-Wide Early Learning and Child Care (CW‑ELCC) initiative are expanding access through capital grants, fee reductions, and infrastructure investment. In communities like Terrace, rising labor force participation—particularly among women—and population growth in young families are fueling the need for both full-day and afterschool care. Additionally, new government-supported spaces in schools and targeted funding for rural, remote, and Indigenous-led providers help ensure that demand will continue to rise across all regions. Rainbow Haven is well-positioned to grow by aligning with these trends and tapping into expanding public support and an underserved local market. 

Potential decline factor  

While current trends support growth in the childcare sector, several external factors could impact long-term demand. Changes to federal immigration policy have a direct effect on the number of newcomer families settling in British Columbia, particularly in communities like Terrace. Stricter immigration limits could reduce the number of young families relocating to the area, lowering demand for daycare and afterschool care. Additionally, the sustainability of government grants and subsidies—such as those under the $10-a-Day program—is uncertain. If funding is reduced or discontinued, childcare could become unaffordable for some families, especially new or lower-income residents. Other social changes, such as an increase in stay-at-home parents or informal childcare alternatives (e.g., relatives, unlicensed home daycares), could also reduce reliance on licensed centers. These factors represent potential risks that may affect enrollment and revenue stability over time. 

References  

  • Government of British Columbia. (2023). ChildCareBC initiatives and updates. https://www2.gov.bc.ca 
  • Government of British Columbia. (2024). Licensed childcare spaces in Terrace. https://www2.gov.bc.ca 
  • Government of Canada. (2021). Canada-Wide Early Learning and Child Care agreement. https://www.canada.ca 
  • Statistics Canada. (2021). The economic contribution of the child care industry in Canada. Retrieved from https://www150.statcan.gc.caÂ