Northwest Indiana’s shifting demographics reveal an analytical glimpse of this Region’s current tapestry and its future possibilities.
“It would be nice if policymakers would utilize these tools as they plan their communities,” said Michael Lunn, managing director of NWI Commercial Property Solutions in Crown Point.
These statistical tools can compare any geographical area by stereotyping its population into groups that have a set of similar physical characteristics, social attitudes and buying behavior.
“It then looks for the concentration of these groups for the entire country,” Lunn said.
The fun part for analytics aficionados like Lunn is to compare and contrast the national data with regional data of the same demographic concentrations. Together, this snapshot of today and vision of tomorrow can then be used to predict broader trends 10 or 20 years down the road.
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Lunn envisions these major trends over the next decade in Northwest Indiana.
First, a generational transfer of wealth from baby boomers to millennials.
“I have clients in various stages of selling or closing their businesses. They will retire in the next 10 years and are looking for a buyer. Or when they die their kids get the business and commercial real estate,” Lunn said.
Many of these boomers are eager to cash out their life’s earnings and go play with the winnings.
“As businesses change hands, new leaders emerge,” Lunn said.
Politically, older boomers will eventually seed control to younger generations that think and act very differently than their parents and grandparents.
“I am hopeful that the Neo-Marxist thoughts dividing the world into oppressed and oppressor will be seen as a tool to keep us all at each others throats,” Lunn said.
Like other future-minded business executives, he predicts on-shore manufacturing will benefit Northwest Indiana in the long run with this area’s intermodal capabilities, the Port of Indiana, interstate expressways, railways and the Gary/Chicago International Airport.
“This is a strength that will attract manufacturing back to the Midwest,” Lunn said.
In the long term, the supply chain will be shifting to manufacturing versus only storage.
“This creates a need for technical schools and people who want to work with their hands, even if it’s just to repair a robot,” Lunn said.
Another major trend that we’re already experiencing is the continued population migration from Illinois to Indiana, as well as a similar migration from the northern end of Lake County to the southern end. This ongoing migration will dictate key socioeconomic factors.
Environmentally, climate change can be a boon for this Region, thanks in part to our proximity to a Great Lake and its dependable assets. Lake Michigan has always been one of the deepest resources here, attracting visitors and transplants alike. So much so that “over-tourism” is now a concern for Indiana Dunes Tourism.
“We're working hard to make sure that doesn't happen here,” said Michelle Senderhauf, the organization’s communications director.
“Indiana Dunes Tourism doesn't really promote the beaches anymore. Instead, we promote other outdoor activities like hiking and paddling, and things to do in the Porter County communities. If we're attracting more visitors to the Indiana Dunes we want them to stay the night, enjoy our restaurants, shop for gifts in our stores and, as we say, ‘shake off the sand south of the dunes,’” Senderhauf said.
I will be taking a deeper dive into this topic in an upcoming column.
“We are committed to offering a quality experience for visitors while at the same time contributing in a positive way to the quality of life for residents,” said Christine Livingston, Indiana Dunes Tourism’s interim president and CEO.
Quality of life will be a key driver and indicator for analytical demographics.
Environmental Systems Research Institute, Inc., now known as Esri, offers its Tapestry Segmentation, which classifies U.S. neighborhoods into 67 distinct market segments.
Neighborhoods with the most similar characteristics are grouped together, while neighborhoods with divergent characteristics are separated.
Segmentation systems operate on the theory that people with similar tastes, lifestyles and behaviors seek others with the same tastes — in other words, “like seeks like.”
Esri’s Tapestry Segmentation project classifies U.S. neighborhoods into 14 LifeMode groups, further classified as different consumer-segments with commonly shared traits. For example, Metro Renters is within LifeMode Group "Uptown Individuals." Other groups include "Bright Young Professionals," "Green Acres," "Workday Drive" and "Rustbelt Traditions." (I will be exploring this comparative data in an upcoming column.)
“Rustbelt Traditions represents a large market of stable, hardworking consumers with modest incomes but an average net worth of nearly $400,000" the Tapestry Segmentation website states. "Family oriented, they value time spent at home. Most have lived, worked, and played in the same area for years.”
“Workday Drive is an affluent, family-oriented market with a country flavor,” the site states. “Residents are partial to new housing away from the bustle of the city but close enough to commute to professional job centers. They favor time-saving devices, like banking online or housekeeping services, and family-oriented pursuits.”
Bright Young Professionals is a large market, primarily located in urban outskirts of large metropolitan areas. These communities are home to young, educated, working professionals. More than one out of three householders are under the age of 35. This group, in particular, is not showing up enough in Northwest Indiana compared to national data.
“Can you say brain drain,” Lunn said.
The Green Acres lifestyle group, which features country living and self-reliance, shows up significantly in Crown Point, for instance. The profile may change your preconceived notion of that growing city. (Read the full report in the online version of this column at NWI.com.)
This next 10-year period and beyond will be marked by baby boomers letting go and the next generation having to take the helm. Demographics will be embedded in this major shift.
“Hopefully this will be guided by history, not to repeat past experiments with socialism but finding a way to use technology for good to increase the quality of life and expand the frontiers of mankind,” Lunn said. “I am optimistic we will get it right and Northwest Indiana will continue to grow the quality of life in this region to make it a place where families call it home and continue to prosper for generations.”
Contact Jerry at Jerry.Davich@nwi.com. Find him on Facebook and other socials. Opinions are those of the writer.