South Australia is approaching a decade in which some of its biggest economic challenges could also become its greatest opportunities.<\/p>\n
An ageing population, persistent skills shortages and growing reliance on migration are set to reshape the state\u2019s workforce and consumer economy. At the same time, investment in defence, renewable energy, technology, space and advanced manufacturing could give South Australia a chance to rewrite its economic story.<\/p>\n
For demographer Simon Kuestenmacher, the businesses that understand these forces early will be best placed to thrive.\u00a0\u201cThe real surprise (in the future) will be that ageing didn\u2019t make South Australia less dynamic. Rather, it forced it to become more dynamic,\u201d he says.<\/p>\n
An older state \u2013 and new markets<\/p>\n
South Australia\u2019s ageing population is well documented, but Kuestenmacher says the more significant shift is happening at the oldest end of the population.<\/p>\n
Between 2021 and 2041, the state\u2019s 65-to-79-year-old population is projected to grow by about 24 per cent, while the number of people aged 80 and over is expected to more than double.<\/p>\n
For business, that means a growing market for health, aged care, housing, leisure, financial services and products that help people remain independent for longer.<\/p>\n
But it also creates a workforce challenge.<\/p>\n
\u201cDemographics ultimately asks two very simple business questions: Who will buy what you are selling, and who will do the work?\u201d Kuestenmacher says.<\/p>\n
The first question presents opportunities. The second is considerably harder.<\/p>\n
South Australia already has more than one in five residents aged over 65, while industries including defence, construction, health, care, renewable energy and advanced manufacturing are competing for workers.<\/p>\n
\u201cAI cannot repeal demographics,\u201d Kuestenmacher says. \u201cYou can\u2019t instantly manufacture another experienced nurse, electrician, engineer or aged-care worker.\u201d<\/p>\n
That makes productivity \u2013 using technology to help scarce workers do more \u2013 an increasingly important competitive advantage.<\/p>\n
Migration becomes essential<\/p>\n
South Australia\u2019s population growth is also becoming increasingly dependent on overseas migration.<\/p>\n
In the year to December 2025, the state added about 19,700 people. Net overseas migration contributed 18,500, while South Australia recorded an interstate population loss of around 1600.<\/p>\n
\u201cEssentially, international migration is doing the demographic heavy lifting,\u201d Kuestenmacher says.<\/p>\n
For employers, that means attracting skilled migrants will become less of a supplementary recruitment strategy and more central to workforce planning.<\/p>\n
The competition will be intense. Defence, technology, energy, construction and healthcare will all need many of the same skills.<\/p>\n
Kuestenmacher says businesses will need to pull three levers: widen the workforce, retain existing employees and amplify their productivity.<\/p>\n
That means recruiting internationally and interstate, building stronger pathways through schools, TAFE and universities, supporting disadvantaged groups into employment and creating opportunities for older workers to remain in the workforce.<\/p>\n
Retention will become equally important.<\/p>\n
\u201cFlexibility, good management, meaningful career progression and sensible approaches to phased retirement will stop being fluffy HR initiatives,\u201d Kuestenmacher says. \u201cThey become core business strategy.\u201d<\/p>\n
Millennials grow into economic power<\/p>\n
Another major shift will come from a generation that businesses have traditionally viewed as young consumers.<\/p>\n
Millennials are now moving through their 30s and 40s \u2013 the years when careers accelerate, families form and household spending increases.<\/p>\n
\u201cI sometimes describe this rather inelegantly by saying, \u2018Millennials make babies and buy stuff\u2019,\u201d Kuestenmacher says.\u00a0\u201cThey need homes, furniture, childcare, cars, financial services and eventually larger quantities of everything.\u201d<\/p>\n
For businesses, the implication is clear: Millennials are no longer simply a youth market. Their needs are increasingly shaped by mortgages, children, careers and competing demands on their time and money.<\/p>\n
At the other end of the spectrum, Baby Boomers remain an economically powerful consumer group, with accumulated wealth and growing demand for experiences, health, travel, convenience and home services.<\/p>\n
The opportunity lies in understanding the difference between generations \u2013 and within them.<\/p>\n
\u201cThe mistake is marketing purely by age,\u201d Kuestenmacher says. \u201cLife stage, health, housing tenure and wealth increasingly tell you more about consumer behaviour than their age.\u201d<\/p>\n
A new workforce opportunity<\/p>\n
While South Australia\u2019s demographic outlook presents challenges, its emerging industries could help change the state\u2019s workforce profile.<\/p>\n
Defence alone is expected to add more than 10,000 jobs to the South Australian pipeline by 2040, spanning engineering, advanced manufacturing, cyber, robotics, trades and technical roles.<\/p>\n
Renewable energy, space and digital technology will draw on many of the same skills.<\/p>\n
\u201cThe emerging economy gives the state a real opportunity to disrupt that pattern\u201d of ambitious young South Australians leaving for Melbourne or Sydney, Kuestenmacher says.<\/p>\n
If South Australia can turn those industries into attractive career pathways, it could retain more graduates, attract skilled workers from interstate and bring in international talent.<\/p>\n
That could make its demographic challenge part of its competitive advantage.<\/p>\n
Looking towards 2035<\/p>\n
By the time South Australia\u2019s business leaders look back on the next decade, Kuestenmacher expects the state\u2019s economic identity to have changed significantly.<\/p>\n
\u201cIt could simultaneously be more technologically advanced, more internationally connected and more economically important to Australia,\u201d he says.<\/p>\n
The defining feature of the next decade may ultimately be the way these trends intersect.<\/p>\n
An ageing population creates new markets but reduces the available workforce. Skills shortages increase the incentive to automate. Migration fills critical gaps. Defence, renewable energy and advanced manufacturing attract investment and create new career pathways.<\/p>\n
\u201cA shortage of workers encourages automation and innovation,\u201d Kuestenmacher says. \u201cAn ageing population creates new industries. Skills shortages encourage migration.\u201d<\/p>\n
For South Australian businesses, the message is less about predicting exactly what 2035 will look like and more about preparing for the forces already reshaping the state.<\/p>\n
The businesses that understand who their future customers will be, where their workers will come from and how technology can amplify their capabilities may be the ones best positioned to take advantage of South Australia\u2019s next chapter.<\/p>\n
Simon Kuestenmacher will be keynote speaker at the\u00a0South Australian Business Index<\/a> lunch and networking event. Join us as we count down the top 100 South Australian businesses. This year\u2019s event\u00a0will be held at the Adelaide Convention Centre on Friday, October 16.\u00a0Purchase your tickets<\/a>\u00a0today!<\/p>\n","protected":false},"excerpt":{"rendered":"South Australia is approaching a decade in which some of its biggest economic challenges could also become its…\n","protected":false},"author":2,"featured_media":602764,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-602763","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/602763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=602763"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/602763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/602764"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=602763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=602763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=602763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}