Waste not, want not
California has a clothing conundrum. In 2020, residents of the “Golden State” bought and wore up to 530000 tonnes of clothing, and some 500000 of those tonnes will eventually enter landfills. Less than 1 % of the materials worn today will resurface in clothing manufactured tomorrow.
To read the article, see “Closing the loop: Increasing fashion circularity in California,” March 31, 2022.
Pain in the boat
The shipping industry continues to feel the effects of pandemic lockdowns, labor shortages, and demand for goods. In late 2021, container schedule delays doubled globally and increased sixfold for countries in the Far East and North America compared with the average in early 2020.
To read the article, see “Navigating the current disruption in containerized logistics,” March 14, 2022.
Let’s go to the mall
Online spending shows no signs of slowing down, but retail merchant leaders expect brick-and-mortar stores will remain crucial parts of consumers’ shopping habits in the next year, according to a recent McKinsey survey. Respondents also indicated a disconnect between their own priorities—such as ongoing supply chain issues and the tight labour market—and their organizations’ readiness to respond to these challenges in the coming year.
To read the article, see “Six strategic priorities for modern merchant leaders,” March 23, 2022.
Greener beams
The net-zero transition could result in a transformation of the world’s built environment, along with related industrial assets. Take steel. Based on our analysis of the Network for Greening the Financial System (NGFS) Net Zero 2050 scenario, low-emissions steel, which makes up about one-quarter of today’s output, would account for almost all of the world’s steel production by 2050.
To read the article, see “Infrastructure for a net-zero economy: Transformation ahead,” April 6, 2022.
Gloomy days ahead?
Geopolitical conflicts loom large for executives. In a new McKinsey Global Survey, almost 60 percent of respondents cite geopolitical conflicts as a risk to near-term growth in their own economies. That’s leading to a relatively less positive sentiment for the overall economy, where, for the third quarter in a row, respondents are less likely to believe that economic conditions, either global or domestic, will improve in the months ahead.
To read the article, see “The coronavirus effect on global economic sentiment,” March 30, 2022.