The Next 25 Years

The April issue of American Demographics Magazine contains a fascinating forecast covering the next quarter century. The article gives us much to think about. Here are a few nuggets from the study:

* The U.S population is expected to grow from its current 282 million level to over 350 million in 2025, adding nearly 70 million people for a 25 percent growth.

* Because of expected changes in our demographic makeup, more niche markets, defined along age, ethnic and other lines are likely.

* Environmental concerns are expected to grow as we stretch our available natural resources, including water, clean air and energy to support a much larger and more active population.

* The graying of America will continue as people 65 years and older increase from 35 to 70 million people by 2025. The senior market will be the largest segment of our consumer marketplace.

* With the birth rate dropping, younger people will constitute a much smaller portion of our total population.

* By 2025, Hispanics will account for 20 percent of the population and Blacks another 13 percent of the total.

* Metro areas with high diversity ratios or large numbers of seniors will likely see the greatest population growth, which means the West, Southwest and South will continue to prevail in the population and market growth race.

What are the possible implications of these trends for economic development? Here are a few to think about:

* Worker shortages among younger population segments will grow.

* More seniors will remain in the workforce, as they live longer and changes in retirement plans and benefits force them to work longer.

* Non-whites will constitute a larger piece of the overall workforce pie.

* Industries serving the senior and ethnic markets will see the most growth in the South, Southwest and West.

* Economic development concerns will shift to include those issues considered most important by seniors and various ethnic/racial groups.

* Education, training and other human resource strategies in economic development will shift to reflect the new world we will be living in 25 years from now.

* More products and services produced by companies will reflect the new population mix emerging. This will put additional pressure on companies to re-design products more often and in line with more different market segments.

Article link.