McKinsey & Company

Brazil’s economic sentiment has taken a hit. Overall, consumers are more pessimistic about the state of Brazil’s economy than they were last year or even last quarter. At first glance, this shift seems counterintuitive given the country’s robust economic landscape. Unemployment has fallen to 6.2 percent, almost the lowest level on record, and GDP is hovering at around 3 percent. However, this positive momentum is overshadowed by persistent inflation, at…

Telecommunication operators have set ambitious targets to decarbonize their emissions footprint, but so far most have gone after the low-hanging fruit. Some have made progress on emissions from their operations (Scope 1) and those from the energy they use (Scope 2). However, few have squarely taken on the much more challenging emissions from their value chain (Scope 3), which account for the majority of their carbon footprint. The challenge is…

In 2024, chief technology officers (CTOs) at consumer companies grappled with the challenges—and embraced the opportunities—of the evolving technology landscape. Learning to use and extract value from AI, modernizing legacy tech systems, meeting ever higher consumer expectations, and complying with digital-trust legislation were all top of mind for these leaders. In the year to come, these issues will become only more pressing. To stay ahead of the challenges, consumer CTOs—or…

Forward-thinking organizations understand that talent management is a critical component of business success. S&P 500 companies that excel at maximizing their return on talent generate an astonishing 300 percent more revenue per employee compared with the median firm, McKinsey research shows. In many cases, these top performers are using strategic workforce planning (SWP) to stay ahead in the talent race, treating talent with the same rigor as managing their financial…

At a glance Diverging work experience patterns drive a “work-experience pay gap” that makes up nearly 80 percent of the total gender pay gap, equal to 27 cents on the dollar among US professional workers. Women tend to build less human capital through work experience than men who start in the same occupations, as seen in the tens of thousands of career trajectories we analyze. Over a 30-year career, the…

President Donald Trump took office on January 20 amid a flurry of executive orders focusing on multiple issues—many with significant economic implications. Notable instructions signed off by the returning president include measures to deport illegal migrants, an “America First” trade policy, relaxation of energy- and climate-related policies, and various orders addressing the development of artificial intelligence.On February 1, the US president announced a 25% import tax on goods from North…

The world looks quite different from when Frank Mars started selling candy out of his Tacoma, Washington, kitchen in 1911. Today the family-owned business is driven by what consumers want and prioritize. The company’s Food & Nutrition segment is focused on making food that is not just tasty but also convenient and healthy. In a recent conversation between McKinsey partner Biljana Cvetanovski and Shaid Shah, Mars Food & Nutrition global…

Today’s environment is giving US manufacturers even more reasons to reassess their footprint strategies. For some, localization of production may now seem increasingly attractive—particularly amid rising volatility in tariff and trade policy, evolving incentives for domestic manufacturing, and realigning global trade corridors (Exhibit 1). Manufacturers know, however, that building new factories—and doing so quickly—can be incredibly complex. More worrisome is that in many organizations, particularly in the United States, factory-building skills…

This transcript has been lightly edited for clarity.How is the procurement function changing? Roman Belotserkovskiy: The role of the procurement organization and the position of procurement leader have been elevated to a much more visible and impactful position across most companies, in almost every industry. Jennifer Spaulding Schmidt: Right now what we’re seeing is procurement is involved very early on, scoping and shaping the demands of the business, and then…

Will generative AI live up to its hype? On this episode of At the Edge, tech visionaries Navin Chaddha, managing partner at Mayfield Fund; Kiran Prasad, CEO and cofounder of Big Basin Labs; and Naba Banerjee, McKinsey senior adviser and former director of trust and operations at Airbnb, join guest host and McKinsey Senior Partner Brian Gregg. They talk about the inevitability of an AI-supported world and ways businesses can…

After a period of exceptional profits, commodity trading markets are starting to normalize, causing industry-wide margins to stagnate or even recede. Our research shows commodity traders generated more than $100 billion EBIT in 2023, and 2024 earnings indicate industry value pools decreased by more than 30 percent year over year, with 2025 shaping up to look much the same. During the boom years of 2022 and 2023, higher volatility spurred…

After six years, the Global Lighthouse Network (GLN) has expanded from 16 to 189 Lighthouses, representing factory, sustainability, and end-to-end value chain categories across 33 countries and 35 subsectors—four times greater than the number of subsectors in 2018 (Exhibit 1). The latest 36 Lighthouses—awarded in October 2024 and January 2025—have not only followed the playbook but are continuing to innovate. They illuminate three leading-edge lessons: They are tackling the digital…

An organization’s culture—or the common set of behaviors, mindsets, and beliefs that shape how people work and interact—is a driving force for its success. In companies with strong cultures, employees at all levels understand the business’s mission and purpose, how decisions are made, how performance is measured, and individuals’ roles in achieving critical organizational objectives. It’s always surprising, then, when culture is overlooked in discussions about M&A. Typically, the focus…

Among oil and gas majors, TotalEnergies stands alone in its plans to shift a fifth of its business to renewable-led integrated power by 2030. It’s a tightrope walk for the company’s long-time CEO Patrick Pouyanné—essentially a strategy that’s not “enough oil and gas” for traditional investors nor “enough renewables” for green ones. But after a decade in charge, the Frenchman is thinking about his legacy and remains confident his is…

The industry overview The consumer-packaged-goods (CPG) industry has historically outperformed most other industries, thanks to high growth and consistent margins. But since 2012, the formula has broken down. Several factors, including inflation (which affects both consumer spending and corporate cost), market saturation, intense competition, changing consumer tastes and behaviors, and a fragmented consumer base have presented challenges for growth. Additional headwinds include climate change, which affects key ingredients, including cocoa.…

The industry overview M &A activity in the global energy and materials (GEM) sector remained muted in 2024. The number of deals increased about 12 percent, and deal value grew from $722 billion in 2022 to $808 billion in 2024, consistent with 2023 figures. Deal value in 2024 was still 14 percent lower than it was in 2021 (in nominal terms). The Americas region was the major driver of deal…

There has always been an elemental symmetry to M&A: A seller concludes that a business or asset does not fit its enterprise portfolio, and a natural buyer recognizes that the same target is a strategic match. Put simply, there’s a buyer for every seller, or so the logic goes. However, the ideal does not always meet the reality. Despite a recent increase in M&A activity across many sectors during 2024…

The industry overview M &A in the financial-services industry is recovering from the global slowdown of 2023. Monthly deal value in 2024 returned to the average monthly value of the prior five years, and total deal value for 2024 was 30 percent higher than that seen in 2023. Nine out of ten financial-service deals in 2024 were made within national borders—up from six out of ten in 2021—reflecting global economic…

The medtech sector continues to face challenges in achieving profitable growth, causing some companies to embark on bold transformations to unlock value. Value creation and potential efficiencies are difficult to capture because they are often deeply interconnected across functions, requiring an evolved operating model and cross-functional collaboration to unlock. Executing a successful transformation in medtech can catalyze change by helping companies refocus on sustainable growth, reigniting a cycle of efficiency…

Zolang we niets doen aan verdere digitalisering van de zorg, stevent de Nederlandse samenleving af op een mogelijk onwerkbare situatie: De zorgkosten stijgen ieder jaar sneller en de personeelstekorten lopen in snel tempo op. Digitale zorg kan niet alleen de zorgkosten omlaag brengen en de personeelstekorten verminderen, maar ook de kwaliteit en toegankelijkheid van de zorg verhogen. Daarbij gaat het niet om “nieuwe” innovatie: er is internationaal reeds een brede…

In response to the changing geopolitical environment, European NATO countries have increased defense budgets, a significant share of which are expected to go to new equipment. As munition stocks grow and existing equipment ages, mission readiness—the ability to deploy military assets for their intended use—is an increasingly important priority for countries. This, in turn, is likely to boost demand for maintenance, repair, and overhaul (MRO) services. But it will be…

Businesses increasingly want to buy clean electricity—especially as the fast expansion of data centers powering artificial intelligence pushes technology companies’ power demands to new heights. Unchecked, these increased power demands further threaten the world’s ability to meet climate targets. Whether to meet environmental, social, and governance (ESG) targets, cut costs, or hedge volatility, more companies are seeking to fully address their energy-related emissions. Companies’ voluntary purchases of clean energy have helped…

Carbon capture and storage (CCS) is projected to play a significant role in the world’s energy transition, particularly in hard-to-abate sectors. Based on McKinsey Energy Solutions’ analysis, future CCS demand is anticipated to be driven by sectors such as power, hydrogen, iron and steel, cement, and refining. The conditions in these sectors that could increase demand for CCS include stranded coal assets, the need for a continuous flow of gas…

Breakthroughs in scientific research and increased public and private investments have yet to negate the long timelines and rising costs of clinical trials. Such challenges continue to drag down biopharma R&D productivity and hold back innovative therapies from making it to market. Although clinical development speed increased during the COVID-19 pandemic, an increasing number of pharma candidates in the pipeline, coupled with a decreasing success rate of clinical trials, has…

It’s been a year and a half since McKinsey published Empty spaces and hybrid places: The pandemic’s lasting impact on real estate. The comprehensive report examined the effect the COVID-19 pandemic had on behaviors, including office attendance, residential moves from urban centers to the suburbs, and in-person versus online shopping. It then modeled what the demand for office, retail, and residential space could be by 2030 in nine major global…

New research by my colleagues at the McKinsey Global Institute shows that as the world becomes youth-scarce, the number of people of working age per senior in advanced economies and China will halve, from about four today to just two by 2050. The fact that people are living longer is good news. Economically, though, there are consequences. People 65 years and older typically consume more than they earn from their…

CEOs are confronting double the number of critical issues today compared with ten years ago. On this episode of The McKinsey Podcast, McKinsey Senior Partners Daniel Pacthod and Kurt Strovink, along with McKinsey Senior Advisor Wyman Howard, join McKinsey Editorial Director Roberta Fusaro to discuss the characteristics today’s business leaders need to handle greater and more frequent waves of disruption and how organizations can create the infrastructure and conditions to build…

In this episode of McKinsey on Building Products, McKinsey Partner Rikki Singh sits down with Arnab Bose, the chief product officer of the Okta Platform. During their conversation, Singh and Bose discuss how AI has changed the landscape of cybersecurity, how Okta innovatively protects its clients against deepfakes and phishing attempts in innovative ways, and how product management teams can work with marketing and sales teams to set ambitious goals…

The world of work is still in flux as many companies continue to follow hybrid and work-from-home models. At the same time, Fortune 500 companies such as Amazon, JP Morgan Chase, and Nike moved to mandated in-office policies of at least four days a week in 2024, and more organizations, as well as much of the US federal workforce, are following suit this year. Which working model is best for…

Consumers still love to shop online, but growth in e-commerce is no longer likely to be as frenzied as it was in recent years. E-commerce sales in the United States soared to 18 percent annual growth between 2019 and 2023. Our analysis suggests that sales could now normalize at a more modest but still healthy growth rate of roughly 6 percent a year—closer to prepandemic levels. The arrival of a…

To the casual observer, 2024 may have felt like yet another difficult year for private equity (PE) globally. Fundraising remained tough—down 24 percent year over year for traditional commingled vehicles, marking the third consecutive year of decline. Investment returns were muted, especially compared with buoyant public markets. Our analysis reveals a more nuanced picture. After two years of murky conditions, private equity started to emerge from the fog in 2024.…

B2B sales leaders today stand at a crossroads. The environment they face is dynamic and challenging. Economic growth is uneven across the world, competition is evolving, and B2B customers are adopting many more consumer-like behaviors, seeking more robust buying experiences, and showing a willingness to find alternative vendors. How can B2B leaders break through in such a challenging landscape? Of course, companies still need to execute on core principles of…

The defense ecosystem today is at a critical junction, ripe with opportunity for private capital, the traditional defense industrial base (DIB), and other commercial players such as hyperscalers to take critical roles in leading disruption within the innovation pipeline. Yet the window to reorient how public and private organizations invest to meet the challenges facing Western security is limited, with the coming decade being the most critical. That’s because increasing…

Innovation and growth are inherently linked. Companies that build new businesses and develop new offerings, processes, or business models are better able to capture growth opportunities and hedge against disruption in a highly uncertain business environment. This conclusion was forcefully reinforced in our recent survey of 1,039 companies around the world. The largest share of respondents identified the ability to innovate as the most important strategic factor for generating growth over…

Core technology remains a huge challenge for the banking industry, with a majority of financial institutions still running on mainframe-based systems because switching to other options is such a monumental task. In this episode of Talking Banking Matters, McKinsey payments sector expert Roshan Varadarajan speaks with one of the entrepreneurial technologists who seek to solve this challenge, Zeta cofounder and CEO Bhavin Turakhia. Zeta offers a broad array of banking…

At a glance Quality, affordable housing is out of reach for far too many Americans. This issue touches rural and urban households, young and old, poor and middle class, and households across racial groups. Housing, and where that housing is located, matters a lot. Housing significantly determines access to employment, education, public and social services, and critical amenities that help families achieve economic mobility. The housing crisis is a national…

Following several years of economic crosscurrents and fluctuating performance, the US wealth management industry is entering 2025 from a position of strength, with solid fundamentals in place. Demand for its services continues to grow as Americans become wealthier and their needs become more complex—for example, because of greater reliance on personal savings for retirement than in prior generations and the proliferation of sophisticated financial products to maximize wealth accumulation and…

The way organizations manage their most important assets—their people—is ready for a fundamental transformation. New technologies, hybrid working practices, multigenerational workforces, heightened geopolitical risks, and other major disruptions are prompting leaders to rethink their methods for attracting, developing, and retaining employees. In the past year alone, for instance, we have seen more and more companies adopt, innovate, and invest in technology—particularly in gen AI—in ways that have spurred more changes…

Modern machines are getting harder to maintain. Extra features, multiple sensors, advanced control systems, and sophisticated software all add cost and complexity to maintenance tasks. In industrial environments, that complexity is often compounded by the coexistence of equipment from different eras, different manufacturers, and different technology types.As the work involved in maintenance becomes more demanding, maintenance functions are wrestling with other challenges. Workforce demographics are one, as older, more experienced…

Return to office (RTO) is on the rise. But in the words of talent expert and McKinsey Partner Bryan Hancock, “It doesn’t matter where you ask someone to be. What matters is what you do with them once they’re there.” On this episode of McKinsey Talks Talent, Hancock and McKinsey Senior Partner Brooke Weddle speak with Global Editorial Director Lucia Rahilly about surprising soon-to-be-published research on the opportunities and challenges of RTO—and…