No quick housing fix
August 28, 2023
Since the COVID-19 pandemic, office space is plentiful and residential real estate supply is inadequate in many global cities. Yet, even if all vacant office buildings were converted to residential space in many of these urban areas, according to McKinsey Global Institute partner Jan Mischke, senior partner Aditya Sanghvi, and colleagues, available housing would increase by only 3 %.
To read the report, see “Empty spaces and hybrid places: The pandemic’s lasting impact on real estate,” July 13, 2023.
Sky’s the limit
September 1, 2023
In facing challenges such as inflation, talent shortages, and higher energy costs, machinery and equipment manufacturers could look to digital and cloud solutions for help. According to senior partners Dorothee Herring and Rafael Westinner and coauthors, implementing organization-wide digitalisation with cloud applications and a suite of digital tools could improve a machinery manufacturer’s EBIT by as much as five to eight percentage points. Automations, improvements in data analysis, and more can increase efficiencies and free up employees to focus on higher-level improvements that lead to further savings and product innovations.
To read the article, see “Boosting machinery sector profitability via cloud-aided digitalisation,” August 11, 2023.
A game plan for tech talent
August 31, 2023
Keeping up with the market for tech talent has become increasingly important for companies, according to a recent report by McKinsey Global Institute partner Michael Chui, senior partnerLareina Yee, and colleagues. For example, job postings in fields related to 15 key technology trends grew 15 % between 2021 and 2022, even though global job postings overall decreased by 13 %. Generative AI was the fastest-growing tech field, at 44 %. Recent layoffs in the tech sector may present a silver lining for other industries that have struggled to win the attention of attractive candidates and retain senior tech talent.
To read the report, see “McKinsey Technology Trends Outlook 2023,” July 20, 2023.
Defence spending surge
August 30, 2023
The invasion of Ukraine has sparked an increase in defence spending among many European and NATO countries. Senior partner Olivia White, and colleagues find that countries closest to Russia and Ukraine, such as Poland, Estonia, and Lithuania, show the steepest rise. In addition, some NATO countries that are less proximate have announced plans to meet the defence-spending target of 2 % of GDP over a longer timeline.
To read the article, see “War in Ukraine: Twelve disruptions changing the world—update,” July 28, 2023.