Marketplace Podcast: "Business Opportunity and a Tricky Balance"

Release Date: January 28, 2025

In this insightful episode of "Marketplace," host Kai Ryssdal delves into the intricate dynamics of an aging workforce and its profound impact on local economies. Focusing on Cumberland County, Tennessee, the episode titled "Business Opportunity and a Tricky Balance" explores how demographic shifts create both challenges and opportunities for businesses and essential services. Through engaging interviews and on-the-ground reporting, Ryssdal paints a comprehensive picture of a community grappling with its evolving demographic landscape.

Demographic Shifts in Cumberland County

The episode opens with Kai Ryssdal introducing the central theme: the demographic changes occurring in Cumberland County, Tennessee, and their ripple effects on the local economy. Partnering with ADP Research, Ryssdal and ADP Chief Economist Neil Richardson analyze data indicating that Cumberland County boasts one of the oldest workforces in the United States. This aging population is increasingly outnumbered by retirees, fundamentally altering the economic and social fabric of the region.

Neil Richardson explains, “If demographics are destiny, as economists like to say, what's happening in Cumberland County is eventually going to play out in every part of this economy” (02:15). This assertion underscores the broader implications of the county's demographic trends, suggesting a nationwide relevance.

The Line Dancing Class: A Microcosm of Change

To illustrate the human side of these demographic shifts, Ryssdal visits a line dancing class in Fairfield Glade, Cumberland County’s retirement community. The class, taught by Adria Cook, a 67-year-old transplants from New Jersey, serves as a vibrant example of how retirees are active participants in the local economy.

During the class, Adria shares her passion for dancing, highlighting the social and physical benefits it provides. “If I don't call the dance, they stop,” she remarks humorously, emphasizing her role in keeping the class engaged and active (05:54). The class comprises mostly women ranging in age from their mid-50s to over 80, including an 87-year-old former teacher, Marianne Rude, who exemplifies the community's enduring vitality.

Ryssdal observes, “The group moved back and forth across the room, turned to face every wall in turn, helped each other remember the combinations” (06:20). This scene not only showcases the retirees' engagement but also hints at the potential consumer base they represent for local businesses.

Business Opportunities: Mountaintop Fabrics and More

The episode transitions to Mountaintop Fabrics and More, a small business founded by John Barnwell, a 59-year-old retiree. Barnwell's venture into the fabric and quilting market is a direct response to the growing retiree population in Fairfield Glade. By offering specialized products and services catering to quilters—a popular hobby among retirees—Barnwell taps into a niche market with substantial demand.

John Barnwell shares his entrepreneurial journey, stating, “I just knew there was a lot of quilters here. So I just opened up a quilt store. That was it” (11:26). His business model leverages the community's interests, demonstrating how retirees' spending habits can create viable business opportunities.

Barnwell also discusses the challenges of starting a business in the area, particularly the high cost of retail space. “To rent a place in Crossville is extremely high. You're looking at at least $100 to $150 a square foot in retail space” (12:13). By operating out of his mother's garage, Barnwell minimizes overhead costs, making his business model sustainable despite economic constraints. This strategic move highlights how retirees can successfully navigate the business landscape by adapting to local economic conditions.

Healthcare Challenges: Cumberland Medical Center Under Strain

As the population ages, the strain on healthcare services becomes increasingly evident. Ryssdal visits Cumberland Medical Center in Crossville, the sole community hospital serving the area. Randy Davis, the Chief Administrative Officer and President of the hospital, provides a candid look into the challenges faced by healthcare providers in an aging community.

Randy Davis explains, “Overall community health here is... classic Appalachia. So you've got a heavy tobacco utilization. We are one of the counties that are in the opioid settlement due to the overprescription of opioids in the area” (19:27). These health issues compound the difficulties of an aging population, increasing the demand for medical services while simultaneously straining existing resources.

Davis highlights the hospital's capacity issues, particularly in the Intensive Care Unit (ICU) which is “nearly always at capacity” (22:14). Additionally, staffing shortages exacerbate the problem, as many healthcare professionals approach retirement, further limiting the hospital's ability to meet growing demand.

Randy Davis articulates the dilemma: “What we're going to do is... our 12-bed ICU is nearly always at capacity” (22:14). This statement underscores the critical need for expanding healthcare infrastructure and workforce to accommodate the rising number of elderly residents requiring intensive medical care.

Balancing Act: Business Growth vs. Community Needs

The juxtaposition of Mountaintop Fabrics and More with Cumberland Medical Center illustrates the delicate balance between business growth and community needs in an aging population. While retirees provide a lucrative market for certain businesses, their presence also demands enhanced public services and infrastructure, particularly in healthcare.

Ryssdal captures this tension through interviews and observations, noting that businesses like Mountaintop Fabrics thrive by catering to retirees, yet the local hospital struggles to keep pace with the increased demand for medical care. This dynamic creates a scenario where economic opportunities exist hand-in-hand with significant societal challenges.

Neil Richardson comments on the situation, “This is one of the tensions that Randy's got running this facility. There's the growing population in Fairfield Glade that wants more medical care and is willing to spend to get it. But he's also got the people of Crossville with less money to spend, but more acute needs” (21:59). This duality highlights the complexity of managing resources in a community with diverse needs and financial capacities.

Community Insights: Voices of Cumberland County

Throughout the episode, Ryssdal incorporates voices from various community members to provide a multifaceted view of life in Cumberland County. From Adria and Wendell Cook's active participation in social classes to John Barnwell's entrepreneurial endeavors, each individual illustrates a unique aspect of the county's demographic evolution.

Wendell Cook, Adria’s husband, offers a personal perspective on the physical demands of staying active in retirement. “I have to say, having done that dance, at first I was like, wow, this is really slow. And then as the song progresses, you realize that your heart is pounding a little bit and you're getting into the flow of it” (07:34). His reflection emphasizes the health benefits and personal satisfaction that retirees derive from such activities.

Conversely, Randy Davis provides a more critical view of the healthcare landscape, highlighting systemic issues that require immediate attention. “Access to care has always been a challenge in this area. Not enough primary care physicians” (19:27). His insights reveal the underlying struggles that come with an aging population, particularly in rural settings where healthcare resources are limited.

Conclusion: Navigating the Future

"Business Opportunity and a Tricky Balance" adeptly captures the multifaceted impact of an aging population on Cumberland County, Tennessee. Through the lens of local businesses and essential services, the episode elucidates how demographic shifts present both challenges and opportunities. Retirees like Adria and John Barnwell are driving economic activity by creating and sustaining businesses tailored to their interests. However, the increased demand on healthcare services, as exemplified by Cumberland Medical Center, underscores the need for strategic planning and resource allocation.

The episode serves as a microcosm for a national trend, offering valuable insights into how communities can adapt to changing demographics. By highlighting both successful business adaptations and the pressing needs of local services, "Marketplace" provides a balanced examination of the complexities involved in an aging society.

Neil Richardson aptly summarizes the overarching theme: “This is a series about how any place changes when the balance between retirees and people still in the workforce” (24:44). His perspective reinforces the notion that as the workforce ages, communities must evolve to address both the economic opportunities and the societal challenges that arise.

Ultimately, the episode encourages listeners to consider the broader implications of demographic shifts, advocating for proactive measures to ensure that communities remain vibrant and sustainable in the face of an aging population.

Notable Quotes:

• Neil Richardson (02:15): “If demographics are destiny, as economists like to say, what's happening in Cumberland County is eventually going to play out in every part of this economy.”
• Adria Cook (05:54): “If I don't call the dance, they stop.”
• John Barnwell (11:26): “I just knew there was a lot of quilters here. So I just opened up a quilt store. That was it.”
• John Barnwell (12:13): “To rent a place in Crossville is extremely high. You're looking at at least $100 to $150 a square foot in retail space.”
• Randy Davis (19:27): “Overall community health here is... classic Appalachia. So you've got a heavy tobacco utilization. We are one of the counties that are in the opioid settlement due to the overprescription of opioids in the area.”
• Randy Davis (21:59): “There's the growing population in Fairfield Glade that wants more medical care and is willing to spend to get it. But he's also got the people of Crossville with less money to spend, but more acute needs.”
• Neil Richardson (24:44): “This is a series about how any place changes when the balance between retirees and people still in the workforce.”

This episode of "Marketplace" offers a compelling exploration of the economic and social dynamics influenced by an aging population. Through detailed reporting and engaging interviews, Kai Ryssdal provides listeners with a nuanced understanding of how demographic changes shape communities, presenting both hurdles and avenues for growth.