Demographic and social changes may have a dramatic influence on the outlook for an industry, or company. This, in turn, will affect investor expectations and therefore the market price of the firm's securities.

• Age distribution. The baby boom generation, which was born between 1946 in 1963, has already and will continue to have a dramatic impact on the relative fortunes of industries and firms. As baby boomers continue to grow older, they will increase the demand for health-care services, pharmaceuticals, retirement communities, and other leisure activities such as RV's, travel, and cruises.
• Income distribution. As baby boomers reach the ages of 45--54 which is typically when family incomes are at their highest, demand for luxury goods should also rise. Diversity in income distribution should lead to more niche markets. Companies that do not target but instead employ a shotgun approach to marketing may find the demand for their products shrinking.
• Distribution of the industrial mix. The shift away from the traditional Canadian resource industries and towards service and technology, which require a highly skilled workforce, can affect the future prospects of firms.