Are you ready for the "boomer" bomb?
- Behind the gradual and continuous changes in our business, economic and social environments lies the macro implication of demographics. Often clouded by short term events, the behavior of large groups of individuals similar in age and values has played, and will continue to play a pivotal role in Canada's economic well being and in the development of its social systems.
- In the 1970's, as this cohort moved out of their parents homes, over-demand led to a boom in construction and rapidly escalating house prices
- With so many people at the peak of their buying cycle (new homes, new appliances, new cars, new childcare needs), the demand for credit increased significantly putting upward pressure on interest rates.
- The current rise in the cost of recreational real estate? Boomers again are the driving force. As their children have grown, this largely affluent cohort is looking for ways to give the family a destination and to give themselves a retreat from the demanding business environment.
- The boomers impact everything from how we shop to how we play. Tennis in the 70's and early 80's was the fastest growing sport - it seemed like you couldn't find a club that had room for you to join. As the boomers matured, less physical demanding sports, like golf, have grown and will continue to grow over the next decade.
For us as leaders in the business community and policy makers it is essential that we recognize the implications of demographic shifts and begin to change our strategies and delivery mechanisms to accommodate the pressure these demographic factors will ultimately place upon us. Virtually no element of the Canadian infrastructure will go untouched; your own personal financial planning, structuring our businesses to embrace these changes and significant implications in the area of public policy.
First some background..
Baby Boom (1947 - 1966) As the single largest cohort in the Canadian workforce, the boomers encompass approximately 9.8 million individuals representing 33% of the Canadian population. By 2006, the entire 9.8 million boomers will be aged 40 to 60 with the leading edge beginning the transition from full time employee to part-time or retired positions. Throughout their lives, this cohort has been a driving economic and political force in Canada - not because they are special, but because as a very large group, their combined presence places significant pressure on the Canadian economy. Consider the following;
So why the "boomer bomb"? The peak of the boomer cohort is just now beginning to close in on their early 50's - a time where many will take advantage of the early retirement programs we in the business community have put in place. People begin to reduce the length of their working lives as soon as they can afford to. The boomers already were more affluent than previous generations - a position that will be enhanced as their capital is augmented through the estates of their parents. While we may have been expecting an orderly transition of the "old guard", these factors will accelerate departure of staff leaving many organizations with a potential leadership vacuum. In the United States growth in the workforce aged 35-44, the key age to develop future managers and executives, is actually shrinking.
| ...Page 2 |