| Business Beat |
| Population boom in the South means money - and demand |
During, the late 20th and early 21st century, America saw its centers of banking and automobile manufacturing shift from the North to the South. Suppliers, traders, and financiers in these important industries are now doing business in Charlotte and Greenville instead of their traditional homes in New York or Detroit. As a result people across the Carolinas and the South are benefiting from intellectual and monetary capital that was formerly located in the North.
According to Dr. Jim Taylor's article, "Manifest Destiny 3.0" from September's American Demographics, 50 million persons will move from the North to the South within the next 20 years bringing the bulk of the nation's mental and physical wealth with them. Semaphore takes a look at the opportunity and challenge the South will encounter as this remarkable relocation changes the way we live and do business.
The Opportunity
The bulk of the new residents coming into the South will be retirees and corporate transplants who will bring their money with them. There will be new markets for our local goods and services. And, since these people are making a permanent relocation, they will be purchasing here for the long term. As a result, the southernmost states can expect an economic and cultural Renaissance marked by unprecedented growth. The South will become the epicenter of America's economy in much the same way the North dominated that position in the early 20th century.
The Challenge
According to Taylor, "the new retirees want to remain active (either as workers or volunteers), want to keep cash flow proportionate to capital burn rate given life expectancy, want quality health services, want continuing opportunities to learn and want to feel that their second act is the best part of their whole life." Our challenge as Southerners will be to deliver on these demands in order to assimilate these older, urban Americans into our communities.
What this means for you
With 50 million people on the way, your business or service will likely be affected by these events. Prepare your organization by watching consumer trends carefully and by planning accordingly. For example, the monthly magazine American Demographics, the source for this article, is an excellent source of information on consumer behavior. Making sure you know whom your market is composed of, today and tomorrow, is an excellent way to keep your business or service going strong.
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