You can expect the winds of change to hit the senior housing industry during 2020. Each year, the demand is increased, which attracts larger diversity, more capital and needed talent for senior housing. You can expect pioneering companies in this industry may have some things up their sleeves though may be tested by disruptive and new entrants that are focused on the delivery of next-gen products. Additionally, some questions hanging over the economy and a race to seize the middle market and adult sectors.
Making waves with employees in other industries
Over the years, premium companies have introduced talent from other industries, such as hospitality and retail. However, this trend is about to reach a new level, and some of the boldest and bravest thinkers among major companies in other industries are moving towards senior C-suites.
Hire change potential for the industry. The community of the elderly has been replicating the beauty of boutique hotels for many years, with some notable achievements, but Leondakis, the pioneer of boutique hotels, is training elderly people who have set their sights on the real estate industry as the scene for your next innovation. At the same time, with the regional expansion of Aegis, Engelskov will bring his rich operating experience. Subsequent Starbucks employees have shown that hiring a high-quality leader from a multinational company can have a dripping effect, using leadership to strengthen the entire organizational structure.
DoorDash Dining has Started
Baby boomers, millennials, and generation Z may not agree very much, but everyone loves DoorDash. According to Morning Consult’s latest analysis, food delivery service is the fastest-growing brand among the three generations of products in 2019. Two other services for food delivery, UberEats, and Postmates have also become the fastest-growing services among the baby boomers. Therefore, it is expected that more elderly living service providers will become more strategic by reducing in-house meals and supplementary delivery services. They can start partnerships with DoorDash and its competitors like existing partnerships with transportation companies and residents.
Disruptor Causes Notice in Industry
As several industry leaders warn, tech giants such as Amazon and Apple have been providing health care services to older people and may eventually change their lives. Last year, Reddit co-founder Alexis Ohanian now ran a venture capital firm. He predicts that the “major changes” of the decade are moving towards the lives of the elderly, and providing the conditions for the emergence of the brand has a disruptive and technologically advanced level. By 2020, the level of sabotage threats will increase. In fact, with the strong support of VC and the innovative model that makes operators tremble, it is expected that a startup will explode on the scene.
Failed Experiments cause Problems
In 2020, early creators are going to face challenges that can cause problems in the industry. Some of these creations and experiments will fail and cause messy problems. The alarmist voice will inevitably give a disturbing warning that the industry needs to adhere to its structure. But bold and well-funded providers will eventually succeed, as they learn some lessons in difficult ways and then reuse more successful methods. As found by Richard Hutchinson, the CEO of Advanced Living, he wants to pay some “fool tax” to be one of the forerunners, but he thinks the company will ultimately be overly cautious in the end Competitors have an advantage.
Rising Tension Between Operators and Owners
The separation between operators and owners is becoming increasingly rare. In the long run, this is positive for the aviation industry, but by 2020 this will lead to increased tensions. Expect more owners to form joint ventures with operators or acquire them directly in 2020 and manage their investment portfolio more aggressively than in the past. When front-line teams are outraged or constrained by stricter and more practical owners, some owners and operators perform well, while others experience difficulties.
Independent Living is going Obsolete
In recent years, living independently has been better than assisted living, which has inspired strong investor interest. However, 2020 will lead to some difficulties regarding this continuum. Active adults will continue to heat up, serve on-demand, and the economics of concerts and new technologies will continue to make this operating model more viable in the coming years.
Some active adults argue that they are not directly competing with independent living, but operators, investors, and developers are starting to question the value of independent living communities, which have shorter stays, and higher dining and labor costs, but lack the needs demand of assisted living.
Famous Brands going into Senior Living
You should expect 2020 to be a big year, especially with the announcement of a brand going into senior living. This brand crossover may take the form of a very well known hotel brand putting its name on some senior living facilities. Right now, the first Four Seasons Residence for seniors that is in its own standalone building is being built, but it is not weird to think about Senior Living at Four Seasons, even though seniors may be dropped from the name to provide a more subtle reference to the resident age.
Adaptive Reuse Means Anything Goes
Unique adaptive reuse projects have turned a lot of buildings into senior living over several years. For 2020, senior living will be chosen as the next use for even more amazing buildings of all kinds. This trend will support the development of quality urban life. This will also fuel the boom in adult rental activities, as the transition to a less urgent environment will have fewer restrictions and design requirements than assisted living. As development teams seek to preserve community milestones, even if they transform them into homes for the elderly, they also seek to thrive design creativity. Although this can be costly, the reward is to provide housing for older people, make them more integrated into the community, and bring emotionally resonating buildings to those who move.
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