What are your top two expectations for your industry in the 2020s?
As we close out the 2010s and enter the new decade, Hoosier industries are going through different levels of change. Often perpetuated by technology and other innovations, many business leaders are observing shifts in business processes at a pace unlike any before. Combine that with other state and national issues, and its clear that companies are going to have to remain flexible to remain competitive.
To learn more about what firms are dealing with, we reached out to leaders from a cross-section of industries and asked them: What are your top two expectations for your industry in the 2020s?
Jump to an industry response:
AEROSPACE / ADVANCED MANUFACTURING
Lisa Teague, Head of Research and Technology
Rolls-Royce Corporation
This is such an exciting time for the aerospace industry. We are very much at an inflection point, as the world increasingly seeks ways to reduce our reliance on carbon-based technologies.
At Rolls-Royce, we have a long-standing commitment to reduce the environmental impact of our products, services, and manufacturing activities; more sustainable aviation is at the forefront of our plans. One key to sustainable aviation is the trend toward electrification.
Electrification offers the opportunity for sustainable growth and reduced carbon emissions across the aerospace industry, as well as increased mission flexibility for defense platforms. It will bring a new, fundamental change to the way we power the world around us.
We are already seeing significant gains in the technologies needed for all-electric flight in small scale air vehicles and hybrid-electric in larger aircraft. And we expect our capabilities to increase exponentially over the next decade.
Another key trend is digitalization – the ability to harness the power of data to drive efficiency, reduce costs, diagnose (and, in some cases, self-repair) issues, and to deliver a better overall customer experience. We see a future where our engines are connected, contextually aware, and even comprehending.
These are just two areas of tremendous opportunity for aerospace in the next decade and beyond. And, I’m excited to say that Rolls-Royce is working on these emerging technology areas, integrating them into our existing suite of world-class capabilities, right here in Indiana.
NONPROFIT
Debie Coble, President, CEO
Goodwill Industries of Michiana, Inc.
For Goodwill Industries of Michiana, we expect the second-hand market to continue to change dramatically. With more options becoming available for to sell their items online, the plethora of consignment stores as well as the growing concern about keeping items out of the landfill, we will continue to reinvent many ways of doing business in the donated goods arena to ensure that we remain relevant for our customers.
On the mission side of Goodwill, we expect an increase in the demand for our services. We have three high schools in north central/northwest Indiana that focus on adults who want to go back and receive their high school diploma. We are already seeing an uptick in individuals registering for classes and we believe that education and training will continue to be a growing concern for adults. For those that want skills training, we believe we will continue to see an increase in individuals reaching out for digital skills training, as well as tech skills such as forklift, weights and measurement training, CDL, CNA training, etc. In 2018 we served over 14,000 individuals in some capacity. I expect this number to continue to grow, especially if we start to see a softening of the economy.
ECONOMIC DEVELOPMENT
Clarence Hulse, Executive Director
Economic Development Corporation Michigan City
Cities are reinventing themselves to be more viable in the coming economic age. For example, Michigan City has pivoted from an older industrial city to a next generation community, fusing its traditional efforts in manufacturing and tourism with emerging opportunities in sectors such as the arts, robotics, and software development. We are building successful business education partnerships to build a workforce pipeline with initiatives such as the Compressed Air Academy, Coding and Energy Academy.
Additionally, economic developers are focusing on encouraging entrepreneurship to balance attraction efforts with the potential for more organic growth. This includes supporting small businesses through technical assistance, funding and connecting to a regional ecosystem to share knowledge and grow market share. Lastly, these efforts need to be carried out in a way that creates more opportunities for residents regardless of income level, race, or age. These quintessential elements of economic transformation are not in conflict but do require a nuanced and focused approach to achieve. The Economic Development Corporation Michigan City other similar organizations throughout the state are creating large networks of partners in business, education, non-profits, residents, and city leaders in an effort to ensure their areas are on the right path for economic prosperity for all.
VENTURE CAPITAL
Chris LaMothe, CEO
Elevate Ventures
There are early indications that innovation and entrepreneurism are beginning to take hold throughout Indiana. It will take years to build this to critical mass, but these two elements must be engrained in the foundation in order for us to build a successful and dynamic economy of the future. This is one of the reasons Elevate has formed partnerships with South Bend-Elkhart, Northeast Indiana, Bloomington/Columbus, Evansville/Jasper, and Jeffersonville/New Albany. Each of these regions is investing in the future of their entrepreneurial ecosystems by being intentional about resources and support for entrepreneurs and startups.
As entrepreneurism and innovation take hold, the venture capital industry will continue to change. We expect there will be more capital formation, which will cover the spectrum from seed to late-term growth. We also expect Indiana to capture double the amount of capital it did from 2010-2020, which according to our 1H 2019 Venture Report was roughly $1.5B. Deal flow will steady and venture firms will continue to seek to better understand specific industries, especially as it relates to AI and tech-enabled products and services.
Regions in Indiana that embrace entrepreneurship and innovation as core foundational elements will move ahead of other regions in investment, workforce attraction and retention and economic diversity. They will help fuel the need for more investment capital and ultimately will be more prepared to capture the attention of the venture firms when they are formed.
HEALTHCARE
Randall S. Moore, Senior Vice President, COO
Franciscan Health and Care Solutions
Healthcare in the 2020s is expected to emphasize solutions to the fragmented system that is driving up the cost of care without improving patient outcome. Advances in care that address this issue will be “the future care delivery model.” Not surprisingly, transformations in technology and artificial intelligence in patient care and surveillance will allow us to care for patients virtually when appropriate, communicate with patients in real time, and connect the healthcare system to the frontline caretakers and patients. As well, new technologies, models of care and innovative payment models that reward excellent patient outcomes, experience and efficiencies will align our fragmented care into a system that allows us to better care for patients before, during, and after illness resulting in better outcomes.
Today, healthcare is mostly purchased as “units of care,” whether a prescription, office visit or hospitalization. Significant improvement in value will be delivered as systems-integrated, new technologies, partnerships, and team models connected with people and communities to reverse deteriorations in chronic conditions today that may have required hospitalization tomorrow.
Instead of people attempting to find the right care inside of complex healthcare systems, leading systems will bring seamless, frictionless care and support to those they are privileged to serve.
PROPERTY DEVELOPMENT / CONSTRUCTION
John Phair, President, CEO
Holladay Properties
The property development and real estate world we know today is totally different than two decades ago. And change is coming even more quickly recently. It is dominated by the actions of Amazon, the information flood thru Google (and similar companies) and the fast-moving communications thru Apple, Dell, and others. Like many business sectors, we are impacted dramatically by each of these change agents.
We held our own annual development conference recently, with our 23 leaders in the real estate development area for Holladay Properties from 5 regional offices. It is an exciting time for us. Between increasing our hotel portfolio to 18 operating hotels and our apartment portfolio by 50%, and several key industrial, land, and rehab projects, we remain bullish in our local markets. And I stress LOCAL. Our business is inherently impacted by local conditions – locations, job growth, zoning, and political environment etc., which are often much different than national statistics.
We are excited – but also being very cautious in any new development beyond the next 12 months. Each of our offices are watching economic indicators – locally. And, unfortunately, our crystal ball has the caution light on for 2021. We hope it is short lived, but we are preparing now.
MARKETING
Thom Villing, President, CEO
Villing & Company
Responding on behalf of American Marketing Association, Michiana Chapter
As a long time marketing practitioner on the agency side, my primary expectations for the industry in the 2020s would fall into two related but distinct areas: continuing focus on digital marketing solutions and how to harness the potential of AI (Artificial Intelligence) opportunities.
Digital marketing solutions have been enthusiastically embraced by brands, large and small, and their agencies. As a result, more and more marketing dollars are being diverted to digital because of the perceived benefits of data analytics, trackability, and return on investment. However, I am sensing that some marketers are re-assessing the shiny benefits of digital. They are beginning to question the level of consumer acceptance of digital marketing tools and the ability of these tools to have an impact at the earliest stages of marketing funnel – namely, generating awareness and interest. This dynamic could have profound implications for marketers as they formulate their plans and budget for the next decade.
Although AI is part of the digital marketing discussion, I believe the challenges may be different. New technologies are emerging rapidly, creating an-ever changing landscape and difficulties determining enduring solutions. Brands like Starbucks are embracing predictive analytics to caffeinate their transactional impact. Other brands like BMW are envisioning intelligent personal assistants that can drive product functionality in ways inconceivable until recently.
All of these developments are moving early adaptors ever closer to the Holy Grail of 1:1 marketing. But there are sure to be headaches and growing pains along the way.
COMMERCIAL REAL ESTATE
Michael W.M. Weishaar, SIOR, Managing Director
Cushman & Wakefield
The industrial world is going to become increasingly about efficiency, be that in the form of location, organization, cost, or all of the above.
One trend we’ve been seeing recently, and we’re expecting to become even more prevalent throughout the 2020s, is the move toward increased efficiency through technology. With major companies increasing their use of automation, and relying more and more on sophisticated warehousing technology that creates efficiency through the use of space, warehousing is becoming an industry in need of more and more skilled workers.
Another trend we’re expecting to ramp up even more in the next decade is the evolution of last-mile solutions for distributors. The days where one huge warehouse anywhere in the country could handle any and all shipping needs are gone. Today’s consumer expects to order their product now, and get it soon. That means it’s important to find more central locations near population to house inventory in order to reduce delivery time. With groceries becoming a more popular option for delivery, these facilities also need to have cold-storage capabilities.
