In today’s inflation and changing supply chain landscape, there are several important trends to consider that directly impact the senior living industry. The most evident trends were quickly pushed into the spotlight due to the pandemic, geopolitical tensions, and technological advancements. Additionally, the hospitality industry across the board was hit particularly hard as talent acquisition and retention challenges became an issue from both a quality of resident experience and an operational standpoint.
For the most part, the worst of these challenges have subsided, or are showing signs of recovery. Supplies to manufacturers have improved, and consumers1 are finding most goods readily accessible again, which has acted as a safeguard against recessionary pressures.
The good news is, while still elevated, the pace of rising inflation has slowed. According to The White House, “As global supply chains have gradually recovered from pandemic-era and commodity market disruptions, there has been a clear cooling in the inflationary pressures on core goods.”2
That said, senior living and inflation are closely connected to retirement savings for the incoming wave of potential new residents.
Industry trends have consistently reported the wave of new residents are seeking more elevated experiences, with an emphasis on nutrition with healthy menu options, a variety of dining venues, and communities that include well-being and activity programming. This group is also highly tech savvy, well-traveled and sophisticated, which means senior living providers will need to invest in implementing these offerings.
With regard to inflation and its potential impact on seniors and the senior living industry, it’s important to keep in mind that inflation leads to increased costs for goods and services across all sectors, but senior living operators may be particularly affected by:
In the coming years, the senior living marketplace will need to adapt to these challenges by finding ways to contain costs, while maintaining quality service. This could include exploring operational efficiencies through technology adoption, streamlining supply chains, renegotiating vendor contracts, and actively looking for creative ways to implement cost-effective measures.
Senior living providers will likely need to develop innovative ways of attracting new residents by seeking out experienced partners, such as CCL Hospitality Group, to find unique solutions that address affordability and operational efficiency, while meeting the expectations of current and potential residents. Overall, careful management of inflationary pressures will be critical to ensure sustainability, meeting residents’ high expectations and provide opportunities for business growth.