2016 BPS Study

Brokerage Industry Perspectives How Best Practices agencies are leading the way

% of BPS Firms that Acquired an Agency Last Year

43.9%

25.5%

13.5%

11.8%

11.1%

10.6%

< $1.25M $1.25M‐$2.5M $2.5M‐$5.0M $5.0M‐$10.0M $10.0M‐$25.0M > $25.0M

Finally, firms of all types and sizes are recognizing that in an environment dominated by consolidation,  culture matters !  Over the long run, a firm’s independence hinges on its ability to attract and retain talented employees. Most agencies  today have an environment that works well for Baby Boomers and Gen‐Xers. However, over the coming decade,  environments will increasingly be shaped by the employment preferences of Millennials and the generation following  them. BPS agencies today are giving a great deal of thought to how to make their work environments more attractive to  this younger demographic. 

Key Challenge #3: Aging of the Workforce

Many factors have converged in recent years that have combined to alter the age demographics of our industry. First,  medical and technology advances have increased life expectancies dramatically. Over the past 20 years, the lifespan of  the average U.S. resident has increased by three full years from 75.8 to 78.8 according to the Centers for Disease Control  and Prevention. As life expectancies and the quality of life for older Americans increase, these mature workers are able  to remain active and productive in their vocations for much longer.   Second, the Great Recession, weak recovery and persistently low interest rates have caused many would‐be retirees to  remain in the workforce. Finally, during the Great Recession many firms reduced their hiring for a period of time while  they assessed whether or not the economy was recovering.   The result? The average age of the employees of most agencies has increased significantly. Since 2008, Reagan  Consulting has measured the weighted average age of our clients’ producers and shareholders. The trend is persistently  upward: 

WASA (Weighted Average Shareholder Age)

WAPA (Weighted Average Producer Age)

51.1 51.9 52.5 51.9 52.9 53.3 54.5 54.4

49.4 

49.3 

48.7 

48.4 

48.0 

47.8 

47.0 

46.6 

2008 2009 2010 2011 2012 2013 2014 2015

2008 2009 2010 2011 2012 2013 2014 2015

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