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8 KfdsToday January 2012 KidsTodayOnline.com By The Numbers The baby bust is over (for now) BYW. BRADFORD WiLCOX, PH.D. DO NOT BELIEVE the gloom and doom message emanating from some quarters of the juvenile produets industry. It is true that the industry took a big hit as U.S. births fell more than 7 percent from 4.324 million births in 2007 to 4.007 million births in 2010. And it is also true that the fundamental eeonomic drivers of American fertility sueh as unemployment and consumer confidence — are doing poorly. But a recent Nielson Company analysis for Kimberly-Clark (http://www.businessweek.com/ news/2011-1 l-21/births-at-11-year- low-may-prolong-five-year-housing- slump.html) projecting that U.S. births will fall below 4 million this year and 2012 is too pessimistic. The Ideal family size for Americans 2.66 children 2.39 children Late 1990s 2010 Women in prime childbearing years 32.5 million 2 9 million Approximately 1.08 million babies were postponed or foregone from 2008 to 2011 2000 2015 Nielson Company analysis projected that births will fall to 3.992 million in 2011 and to 3.989 million in 2012. By contrast. Demographic Intelligence (the company that 1 direct) is predicting that U.S. births are now rising again and that U.S. births will be higher in 2011 and 2012 than they were in 2010. Specifically, the December edition of our U.S. Fertility Forecast projects that births in the United States will remain above the 2010 level of 4.007 million births at least until 2013. Why are our predictions more hopeful than Nielson's? At least three factors make us more bullish about the short-term future of fertility in the United States: 1 Even though the total fertility rate (TFR) in the United States fell below two births per woman on average from 2007 to 2010, ordinary Americans still believe that two or more children is ideal. Our research finds that the ideal family size for Americans of childbearing age (18-46) rose from 2.39 in the late 1990s to 2.66 in 2010. So the U.S. demand for babies remains robust. 2 According to our analyses, approximately 1.08 million babies were postponed or foregone from 2008 to 2011. Parents considering a second, third, or fourth child have been particularly likely to avoid having a child since the recession began in December of 2007. But now, we think many American women are trying to recoup the fertility they postponed from 2008 to 2010. This will push births up in 2012 and 2013. 3 The number of women in their prime childbearing years (20-34) is now rising, from about 29 million in 2000 to 32.5 million in 2015. This Echo Boom means that more women in the U.S. are now primed to have babies. So even if the fertility rate is falling somewhat, there are more women now moving into the prime years to become mothers, which we think will also push births above where they were at in 2010. To be sure, we are not predicting that a major baby boom is around the corner. Given the serious economic headwinds that young adults are facing in today's economy, they are not likely to have as many children as they would like to have. Nevertheless, Demographic Intel- ligence is convinced that U.S. births touched bottom in 2010 at 4.007 million births and are now rising. Accordingly, companies selling everything from toys to diapers to cribs to strollers should be able to take some succor irom the fact that most Amerieans of childbearing age would still like to have two to three children and, more importantly, that Americans of childbearing age come closer to realizing their fertility ideals in the next two years than they have in the last lour years. The bottom line: at least for now; the baby bust seems to be over. IV. Bradford WUcox is director of the National Marriage Project at the University of Virginia and president of Demographic Intelligence (http:// demographicintel. com/). Demographic Intelligence is a provider of U.S. birth forecasts and U.S. fertility analytics for companies in thefollowing sectors: child care, financial services, food, household products, insurance, juvenile products, medical and retail, Source: General Social Survey, 1972-2010 men and women age 18 to 46.

The baby bust is over

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DO NOT BELIEVE the gloom anddoom message emanating from somequarters of the juvenile produetsindustry. It is true that the industrytook a big hit as U.S. births fell morethan 7 percent from 4.324 millionbirths in 2007 to 4.007 million birthsin 2010. And it is also true that thefundamental eeonomic drivers of American fertility — sueh asunemployment and consumerconfidence — are doing poorly.But a recent Nielson Companyanalysis for Kimberly-Clark(http://www.businessweek.com/news/2011-1 l-21/births-at-11-yearlow-may-prolong-five-year-housingslump.html) projecting that U.S.births will fall below 4 million thisyear and 2012 is too pessimistic.

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Page 1: The baby bust is over

8 KfdsToday January 2012 KidsTodayOnline.com

By The Numbers

The baby bust is over (for now)BYW. BRADFORD WiLCOX, PH.D.

DO NOT BELIEVE the gloom anddoom message emanating from somequarters of the juvenile produetsindustry. It is true that the industrytook a big hit as U.S. births fell morethan 7 percent from 4.324 millionbirths in 2007 to 4.007 million birthsin 2010. And it is also true that thefundamental eeonomic drivers of

American fertility — sueh asunemployment and consumerconfidence — are doing poorly.

But a recent Nielson Companyanalysis for Kimberly-Clark(http: / /www.businessweek.com/news/2011-1 l-21/births-at-11-year-low-may-prolong-five-year-housing-slump.html) projecting that U.S.births will fall below 4 million thisyear and 2012 is too pessimistic. The

Ideal family size for Americans

2.66 children2.39 children

Late 1990s 2010

Women in prime childbearing years32.5 million

29 million

Approximately 1.08 million

babies were postponed or

foregone from 2008 to 2011

2000 2015

Nielson Company analysis projectedthat births will fall to 3.992 millionin 2011 and to 3.989 million in 2012.

By contrast. DemographicIntelligence (the company that 1direct) is predicting that U.S. birthsare now rising again and that U.S.births will be higher in 2011 and 2012than they were in 2010. Specifically,the December edition of our U.S.Fertility Forecast projects that birthsin the United States will remainabove the 2010 level of 4.007 millionbirths at least until 2013.

Why are our predictions morehopeful than Nielson's? At least threefactors make us more bullish aboutthe short-term future of fertility inthe United States:

1 Even though the total fertilityrate (TFR) in the United Statesfell below two births per womanon average from 2007 to 2010,ordinary Americans still believethat two or more children isideal. Our research finds that theideal family size for Americansof childbearing age (18-46) rosefrom 2.39 in the late 1990s to 2.66in 2010. So the U.S. demand forbabies remains robust.

2 According to our analyses,approximately 1.08 million babieswere postponed or foregone from2008 to 2011. Parents considering asecond, third, or fourth child havebeen particularly likely to avoidhaving a child since the recessionbegan in December of 2007. Butnow, we think many Americanwomen are trying to recoup thefertility they postponed from 2008to 2010. This will push births up in2012 and 2013.

3 The number of women in theirprime childbearing years (20-34) isnow rising, from about 29 millionin 2000 to 32.5 million in 2015.This Echo Boom means that morewomen in the U.S. are now primedto have babies. So even if thefertility rate is falling somewhat,there are more women now movinginto the prime years to becomemothers, which we think will alsopush births above where they wereat in 2010.

To be sure, we are not predicting thata major baby boom is around the corner.Given the serious economic headwindsthat young adults are facing in today'seconomy, they are not likely to have asmany children as they would like to have.

Nevertheless, Demographic Intel-ligence is convinced that U.S. birthstouched bottom in 2010 at 4.007 millionbirths and are now rising.

Accordingly, companies sellingeverything from toys to diapers tocribs to strollers should be able to takesome succor irom the fact that mostAmerieans of childbearing age wouldstill like to have two to three childrenand, more importantly, that Americans ofchildbearing age come closer to realizingtheir fertility ideals in the next two yearsthan they have in the last lour years.

The bottom line: at least for now; thebaby bust seems to be over.

IV. Bradford WUcox is director ofthe National Marriage Project at theUniversity of Virginia and presidentof Demographic Intelligence (http://demographicintel. com/). DemographicIntelligence is a provider of U.S. birthforecasts and U.S. fertility analytics forcompanies in the following sectors: childcare, financial services, food, householdproducts, insurance, juvenile products,medical and retail, •

Source: General Social Survey, 1972-2010 men and women age 18 to 46.

Page 2: The baby bust is over

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