10,000 Baby Boomers are Retiring Every Day: What Does This Mean for Economic Development Business Attraction?
Traditional methods are no longer enough
Economic development has long relied on tried-and-true methods to attract new businesses and foster growth within communities. These methods, often revolving around personal relationships, referrals, trade shows, and direct outreach, have proven effective over the years. However, as we stand at the crossroads of significant demographic and technological shifts, it's crucial to recognize that what has worked in the past may not suffice for future success.
The Changing Face of Economic Development
The Three Rs (Relationships, Referrals, and Repeat Business)
For decades, economic developers have relied heavily on personal relationships, referrals, and repeat business – the Three Rs. This approach is epitomized by the classic image of a handshake on a golf course, where deals are often sealed in informal, trust-based settings. However, this method faces significant challenges today.
As of 2024, around 10,000 baby boomers retire every day. These retirees often take with them the long-standing relationships they've built, leaving a gap that cannot be filled by the same methods. Simultaneously, the new generation of decision-makers, who grew up with technology at their fingertips, gathers and processes information differently. They prefer digital communication and research over face-to-face interactions, and their buying behaviors reflect this shift.
Economic development organizations must recognize that relying solely on personal relationships and referrals is no longer sustainable. To engage the new generation of business leaders, developers need to adopt strategies that cater to their digital preferences.
