If you watch the news, you would never know we are on the front end of one of the largest economic booms in our history. The real numbers no one talks about show the economic expansion will last through the end of the 2030s. How do we know that? Two reasons:
- Just like the 79 million Baby Boomers drove record growth in the 1980s and 1990s, the Millennials (with over 100 million) will drive massive economic expansion in the 20s and 30s of this century.
- With healthcare technology keeping Boomers living into their 90s (longer than ever), adding 10-15 years into a demographic group’s life adds 10-15 more years of economic impact by Baby Boomers.
The combination of the above two scenarios creates a perfect storm of spending and growth by each of these two demographic segments to many of the industries that heat treaters service. Every industry that caters to either segment will grow in record numbers, including:
- Medical devices
- Cell phones
- Food and beverage
You name the industry. If 30-year-olds and 70-year-olds are their target market, plan on 20 years of record growth.
As a company, however, you must be smart about key influences that will have radical impact on each industry. Two elements driving how business models will evolve in the next 20 years are:
- Rapidly developing emerging technologies
- Change in consumer buying habits
With the growth of the Internet of Things and Industry 4.0, which connect people, machines, information, processes and technology, market disruption is causing change in business models at a record pace. Failure to adopt new technologies and embrace consumer buying-habit changes will likely cause your company to disappear. Forbes is predicting that 40% of today’s Fortune 500 companies will not exist by 2030. Market disruption is real, so take it seriously.
Technologies that are going to have a dominating impact on industries are:
- Shared mobility (will change the transportation industry)
- 3D printing (will change manufacturing industries)
- Artificial intelligence (will change every professional industry)
- Robotics (will change retail, food-service and hospitality industries)
- Blockchain (will change any industry that serves as an intermediary)
The hardest element for many people to realize is the urgency they need to have in changing their business models. It’s important to embrace new technologies, leverage them and take advantage of the growth coming in 2020 and beyond.
On consumer buying-habit changes, your company needs to pay close attention to trends like:
- Rentals/shared models (Airbnb and Uber)
- Swap commerce (online barter sites)
- Chemical revolt (do it yourself)
- Subscriptions services (product delivered in a box for a monthly fee)
Consumer buying habits shift fast due to how connected everyone is. If consumer buying habits shift in your industry and your company is not out in front of it, you may quickly lose market share and not be able to recover.
It is critical as a company that you stay tuned into the best and most current information on these changing trends so you can ensure your customer’s business model is ahead of the market disruption running toward every industry. Don’t wait another year.
Study the impact of demographic shifts in your customers’ markets, implement Industry 4.0 models in your operations and embrace new smart technologies to maximize customer service and throughput.
Make 2019 a breakthrough year for your company so you can seize the growth that will take place in 2020 and beyond. The future of your business depends on it.