Baby Boomers to Millennials: Generations Impact Local Economies

Everything changes. Consider languages and regional dialects, mores and folkways, music, cuisines and the physical height of our society. Within the last century in the United States, we have seen the effects of the pre and post-war economies, changes to Federal spending policies, different transportation modes and patterns, new medical treatments, enhancements in agricultural production and shifting housing patterns. Each has amalgamated communities into new configurations.

In the western suburbs of Chicago, some golf courses and farms have been converted into housing tracts. Trails and one-lane roads are now major roadways and even toll ways. Large warehouses and manufacturing buildings have either been torn down or converted to "higher and best uses." The ebb and flow of prosperity has had much to do with where we live.

Locally, how we are define "the now" and "the future" is both market-driven and a response to the needs and desires—should we say demands—of the consumers and residents of our villages. Trying to predict the ever-changing purchasing habits and culinary tastes of multi-generational consumers is very hard to do.

According to an Aug. 5 article edited by Bill Dugan, "Generation X, Y or Z", published on StepByStepMarketing.com, there are five generations of consumers. The oldest in age, and the ones who most value conscious, are the "Greatest Generation" (born during or before 1945). Supposedly, they do not shop for fun, but they do want products that help them to live better, richer lives. They are recognized as the ones that buy 25 percent of toys, which they purchase for grandchildren.

"Baby Boomers" were born between 1946 and 1964. There are about 76 million of them. A portion has begun to retire but many will continue to work well into their golden years, both for pleasure and for necessary income.  Most think they are as about as young and fit as they once were when they were half their ages.

The third group, called "Generation X", consists of those with evolving careers, who are entering their peak earning years. Like the Greatest Generation folks, the X'ers like value-oriented shopping.  They still need a lot of possessions.  With 44 million of them, a great many probably have children and many of those offspring are still living at home.

The population of "Generation Y"—also referred to as "Millennials"—run the gamut from about 10 years of age up to the later twenties. At 75 million, this group has lots of buying power, for they are spending the money of their Baby Boomer parents. Most are totally into high tech, cell phones, Internet shopping and fast everything.

"Generation Z" is being called the "iGeneration" for they have been born during the Internet age. They will be embracing technology with open arms and prone hands, for changing technology will be a constant for them. Will they be satisfied with the way things are or will they want everything to immediately change, as is possible with a touch of an iPad screen? Truly, the future is theirs, as well as those next generation "Alpha" tykes that will take their place.

In an article "Replanning Small-City Downtowns", published by the Urban Land Institute in spring 2010 and written by Nina and Aaron Gruen, the downtowns of small towns are going to experience—if it is not already occurring—a shift in the look and feel of a community's core. Where people used to go to smaller retail stores for clothes, meat, haircuts, and hardware, there will be a continual shift to bigger stores and nationally branded retailers. Where people once used a mail order catalogue and waited weeks for delivery, now there is the always-open Internet and overnight delivery. Communities must redefine themselves to survive.

"Although Gen-Y'ers do not spend as much time or money shopping, they do eat out and go to clubs. A downtown with an agglomeration of restaurants appealing to a wide variety of tastes and budgets will be able to draw from an extended geographic area," the article states. "Gen-Y'ers, who tend to marry later and have fewer children, will be a primary market for both multifamily rental housing and condominiums.  Some Baby Boomers will also want to shed their larger suburban homes for central and convenient living once their children have left home."

The authors note that because of changes of density, a more challenging job market, increasingly lower access to credit, and other recessionary impacts, "The resulting new downtown retail base is likely to include one or more of the following: pet products and services businesses, food and wine stores, including small-format grocery stores offering organic and locally grown produce; spas and other health and alternative health products stores; personal service firms; and an Apple or Microsoft store."

Our community leaders can see the changes coming, and so do most of the residents.  Like an approaching thunderstorm, there normally is some time to run for shelter before the atmospheric calamities culminate. Fortunately, our leadership within the villages is striving to meet the challenges to a healthy business environment head-on. With good planning and a wee bit of luck, our communities will welcome the aspects of the future and use them in our planning for the now. 

We must be ready to greet the "i," "alpha" and yet to be labeled "5G "generations that will be taking their places within our local economies. Economically, they will eventually be the ones that drive the bus. They'll have their permits before we know it!