Note that this article has been updated to also include some of the private discussions with thought leaders in the past. You can read my final overview of my research into the Millennial generation along with what I predicted and what happened as they matured at this link. While I still speak about Echo Boomers and iGenZ privately, I seldom add new articles to this specific blogspot site. If you're reaching out about a speaking engagement, you can contact me at the research firm SqlinSix.
The Size Basics
According to a CBS news video, Echo Boomers (sometimes called Generation Y or Millennials) are the largest American generation since 1960. If you include Echo Boomers born from 1982 to 1995, there are roughly 80 million total. For reference and consistent date sake, Echo Boomer by my definition means a young person born between 1980 and 1995. This would mean that there's more than 80 million.
When I worked in the financial industry, approximately 25-30% of my discussions were Echo Boomers. While this had been trending upward for the last two years, some of these Echo Boomers were excluded because they're too young (1993, 1994, 1995). As this generation matures, I expect that a third of financial customers will be Echo Boomers. From a business perspective, not only is this exciting news, but it also means that unaware companies, which fail to market well to Echo Boomers, will easily fall to companies, which have prepared for this massive demographic.
Business Impacts
An example of this generation's size affecting business would be the housing market. A generation with over 80 million members may mean a generation that eventually will need more housing units (and depending on the Millennial marriage rate, the demand may be higher because fewer Echo Boomers will marry).
As a final note, notice that there is some disagreement as to when the Millennial generation begins. Even with the disagreement, however, the estimates are about 80 million (close to one-fourth of the U.S. population). An example for investors or traders, would be Generation Y's affect on oil prices, as more Echo Boomers, who drive, will cause the price of oil to rise in the long run (unless alternatives are developed within the car market that do not use oil). Or, Echo Boomers may adjust their behavior (public transportation or living closer to work) and we see reduced demand for oil.
The key? The size of the generation will carry impacts on businesses.
Misunderstandings of Generation Y's Size (Updated From Private Discussions)
One popular myth about Echo Boomers is that they will follow the path of their parents in terms of economic demand. This is false for numerous reasons, but one I'll highlight here involves healthcare: I predict that Echo Boomers will not live longer than their parents (and most don't realize this). In fact, I predict that life expectancies will fall in the future.
I use this example to highlight a major difference for Baby Boomers versus Echo Boomers. Baby Boomers will live longer than their Millennial children, which explains some of the economic decisions they made. When you plan that you'll live to 95, you live a different life than if your life is cut shorter than 95. As Echo Boomers recognize this reality, we will see shifts with some of the businesses that Baby Boomers loved (example would be things like long term care).
The same applies to reactionary or pendulum-based behavior. Echo Boomers see their parent's behavior that worked out or did not work out and make adjustments. Understanding their sentiment toward their parent's behavior will be key for recognizing if an industry will make it or not. For instance, how Echo Boomers feel about oil companies versus tech companies significantly differs from their parents. Will they always feel this way? No, but how will their sentiment influence their behavior for the next decade before it changes?
Baby Boomers tend to see the world from their view. In talking with Baby Boomers over time, I've observed that they're ready to speak before their time. They struggle with listening. I recognize that it may feel difficult to read this but I don't think Echo Boomers will be as similar as many Baby Boomers expect to their parents.
