The spiralling demand for health services spurred on by the state’s ageing population could provide significant opportunities for businesses to invest in health and target the emerging "Grey Gold" market, according to BankSA’s leading economic bulletin Trends.
The publication, compiled by BankSA and Access Economics, was released today to more than 200 of the state’s business leaders, at a lunch featuring a keynote speech from leading surgeon Professor Guy Maddern – Head, Division of Surgery and Director, Basil Hetzel Research Institute The Queen Elizabeth Hospital.
Trends notes "among the increasingly familiar ‘doom and gloom’ projections of the effects of population ageing, there are some important implications and opportunities for business. While it is true that ageing will hurt overall economic growth, it will also change spending and investment patterns as older consumers become a more important force in the marketplace". ;
BankSA Managing Director Mr Rob Chapman said the change in spending and investment and, therefore, the subsequent opportunities, will be particularly significant in South Australia.
"We have a population that is one of the oldest in the country and projections show, along with Tasmania, we will be most affected by ageing pressures," Mr Chapman said.
"While this represents great challenges, on the flip side it points to even greater opportunities for the state’s businesses that are able to tap into the expansion of the health sector and related industries.
"Growth in demand for health care has outpaced other areas of the economy for decades, a trend that is set to continue. The question is not whether the sector will grow but by how much – a tough figure to nail due to the variables of rapidly advancing medical technology.
"Spurring on the growth in this sector is the combination of increased life expectancy and the demographic bulge of the baby boomers, which will result in the number of Australians aged 85 increasing five fold in the next 40 years.
That means a wealth of ‘grey gold’ for the health industry and enormous potential for its expansion."
The industries clearly positioned to benefit from the ageing population are health businesses including private hospitals and medical facilities, medical practices, aged care facilities and retirement villages.
Looking more broadly there is significant potential for businesses in community support services for the elderly, fitness and alternative therapies as people look increasingly to preventative medicine and infrastructure as the ageing population leads to a demand in specific requirements for housing construction, transport, and the like.
Trends reports that South Australia’s most significant opportunity lies in the state’s health research institutes and medical manufacturers.
"We are well placed in health research and manufacturing to capitalise on the changing market with a strong history in health care and medical technology," Mr Chapman said.
"The state is a leader in the research sector, receiving one of the highest levels of Federal Government health research grants, when compared to our output, and posting the second highest medical and pharmaceutical patent application level per head."
South Australia already has around 300 health-related exporters and is considered a world leader in areas such as optics. The state’s biotechnology and research sectors have also undergone rapid growth with around 70 bioscience companies operating in South Australia.
Professor Guy Maddern. said that South Australia was well positioned to implement new approaches to medical care based on evidence based research.
"However, we need to have a more flexible workforce able to adapt to the rapidly changing technologies and opportunities in health," Professor Maddern said.
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