12 BWD | Fall/Winter 2016-2017
An age of change
Industries face an unprecedented aging surge within the workforce
By 2030, the over-65 population will nearly double as members of the baby boomer generation (born between 1946 and 1964)
age. Along with this demographic shift will be a sea change in a number of industries. Here’s a snapshot of three of them.
HEALTHCARE
Managing chronic conditions, along with a patient’s level of
disability, will increase the financial demands on our healthcare
system. The average 70-year-old requires approximately three times
more prescription drugs than the average 40-year-old. Additional
challenges include the fact that:
• A shortage of healthcare professionals is expected. Adding
to the problem: The diversity of caregivers lags behind the
growing diversity of patients.
• Care has often been focused on a single disease. But the
country’s future likely includes an increase in comorbidity —
where a patient requires treatment for two or more chronic
conditions or diseases.
• The Affordable Care Act impacts the way healthcare providers
service patients, as well as the cost of their treatment.
Increased governmental policies and procedures also affect
how well providers can maintain patient data and information.
REAL ESTATE
CONSTRUCTION
With nearly 20 percent of the country’s population in the 65+ category,
real estate is going to have to evolve. In fact, 56 percent of respondents to
the 2015 Akerman U.S. Real Estate Industry Outlook Report survey ranked
population aging as the trend that will have the most significant effect on
the real estate market over the next three years. Also of note:
In the construction industry, the total number of workers over 60
has increased more than any other age group. (Over 40 percent
of construction workers are baby boomers.) Of 58 construction
firms surveyed, half said the industry’s aging workforce would
“negatively” or “very negatively” affect their businesses.
• 58 percent of real estate executives said they believe that the
multifamily sector will continue to lead commercial real estate
through the economic recovery.
• Seven out of 10 real estate executives agree that apartment
development will drive multifamily activity, compared with senior
living facilities (17 percent) and condominiums (11 percent).
• Today, real estate investment trusts (REIT) are more influential in
the acquisition of senior living facilities than ever before. With a
flourishing landscape, the senior living industry saw a $25.5 billion
increase in publicly announced acquisitions from 2013 to 2014.
How did it reach this point? When work was scarce, some workers
retired early and others switched careers. The median age of
construction workers climbed from 37.9 in 2000 to 40.4 in 2010,
according to The Center for Construction Research and Training.
The chief concerns among age-pressured construction firms are:
• Recruiting competent job applicants.
• Transferring knowledge to less-experienced employees.
• Compensating for the low skill levels of new employees.
These are just a few of the industries impacted by our nation’s aging population — we haven’t even touched on
manufacturing, information technology and others that will also be affected. To learn more about what your company can
begin doing now to successfully face these challenges, contact Rehmann at 866.799.9580.