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Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:21 - 1 Oct 2022 -
The US economy is uncertain, but this one sector reveals a bright spot
Readers & Leaders
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THIS MONTH'S PAGE-TURNERS ON BUSINESS AND BEYOND
Change can be scary, but not when it’s the kind that reinvigorates the American economy. The authors of McKinsey’s forthcoming book, The Titanium Economy, say the industrial sector is on the brink of its best years yet, but it won’t look anything like the old image of American manufacturing. In this edition of Readers & Leaders, learn more from senior partner and coauthor Asutosh Padhi about the new age of industrial technology, catch up on our conversations with AOL founder Steve Case and former Medtronic CEO Bill George, and see this month’s best-selling business books, prepared exclusively for McKinsey by NPD BookScan. Itching for more good reads? Visit McKinsey on Books for the latest, and to get Readers & Leaders in your inbox monthly, click here to subscribe.
AUTHOR TALKS
The titanium age of US manufacturing is dawning, says North America managing partner Asutosh Padhi. Along with coauthors Gaurav Batra and Nick Santhanam, Padhi examined more than 80 industrial technology companies and identified the 35 leading the American economy into a new era of sustainable, inclusive growth. In a recent edition of Author Talks, the authors reveal how this underrecognized sector—which is responsible for B2B products like recycled lumber and color enamels—is driving long-term gains in innovation and employment.
“Because [titanium economy companies] tend to be smaller from the standpoint of revenues, they don’t make headlines in the news media. Titanium economy companies have been going about doing what they’re actually good at, which is delivering great returns for their shareholders, taking care of customers, taking care of employees, doing the job around communities, and cleaning the environment—but they have never really found an opportunity to pull it all together and tell the story.” Preorder The Titanium Economy: How Industrial Technology Can Create a Better, Faster, Stronger America and watch the full interview here.BUSINESS BESTSELLERS TOP
8
BOO! An empty bookshelf is terrifying. Dust off the cobwebs and stock up on the top business bestsellers in eight categories, prepared exclusively for McKinsey by NPD BookScan. Explore the full lists on McKinsey on Books.
BUSINESS OVERALL
Atomic Habits: An Easy & Proven Way To Build Good Habits & Break Bad Ones by James Clear (Avery Publishing Group)
BUSINESS HARDCOVER
Atomic Habits: An Easy & Proven Way To Build Good Habits & Break Bad Ones by James Clear (Avery Publishing Group)
DECISION MAKING
Blink: The Power of Thinking Without Thinking by Malcolm Gladwell (Hachette Book Group)
ECONOMICS
The Voltage Effect: How to Make Good Ideas Great and Great Ideas Scale by John A. List (Random House)
ORGANIZATIONAL BEHAVIOR
Atomic Habits: An Easy & Proven Way To Build Good Habits & Break Bad Ones by James Clear (Avery Publishing Group)
WORKPLACE CULTURE
Impact Players: How to Take the Lead, Play Bigger, and Multiply Your Impact by Liz Wiseman (HarperCollins Publisher)
DIVERSITY & INCLUSION
Caste (Oprah’s Book Club): The Origins of Our Discontents by Isabel Wilkerson (Random House)
SUSTAINABILITY
Gambling on Development: Why Some Countries Win and Others Lose by Stefan Dercon (Oxford University Press)
BOOKMARK THIS
If you’d like to propose a book or author for #McKAuthorTalks, please email us at Author_Talks@Mckinsey.com. Due to the high volume of requests, we will respond only to those being considered.
—Edited by Molly Liebergall, a digital editor in McKinsey’s New York office
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by "McKinsey Readers & Leaders" <publishing@email.mckinsey.com> - 11:09 - 1 Oct 2022 -
Being hopeful, the economic state of Latinos, green shipping corridors, and more big reads for the weekend
Harmony Internal - McKinsey
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CURATED PICKS FOR YOUR DOWNTIME, FROM OUR EDITORS
Joyce Yoo
Digital Editor, New YorkWe’ve made it to the weekend. As we say hello to a new month, catch up on this week’s big reads on brand building, being hopeful, green corridors, and more.
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—Dipo Faloyin, author and a senior editor at VICE on African identity, in a recent Author Talks interview
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:15 - 30 Sep 2022 -
Forward Thinking on talent, state capacity, and being hopeful with Tyler Cowen
Harmony Internal - McKinsey
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Forward Thinking on talent, state capacity, and being hopeful with Tyler Cowen
Discover and innovate Explore this and future episodes of the McKinsey Global Institute’s Forward Thinking podcast on our site, and subscribe to ensure you never miss a new one. Subscribe via Apple podcasts, Google Podcasts, Stitcher, or Spotify.
Author Talks: How industrial technology is creating a more inclusive economy
Pandemic paradoxes, labor market myths, and ‘cowboy capitalism’ with David Autor
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by "McKinsey & Company" <publishing@email.mckinsey.com> - 02:22 - 30 Sep 2022 -
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[September Global Update] Exciting stories and essential reading from Remote!
[September Global Update] Exciting stories and essential reading from Remote!
Hi MD,
Welcome to your Remote global update for September 2022. There is so much exciting news this month that we can’t wait to jump right into it.
What we have for you this month:
- G2 rates Remote as the #1 Multi-Country Payroll provider in their Fall Report 2022.
- Welcoming new partners to the Remote Marketplace.
- Exclusive new report: Remote’s Global Benefits Report 2022.
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Remote wins back-to-back!
We’re thrilled and humbled to once again receive the recognition from G2 as the #1 Multi-Country Payroll provider in their Fall Report 2022 🥇
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from the blog
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If your organization works in the digital space or has remote workers, there’s a cybersecurity company you’re going to hear about if you haven’t already: Chaleit.
The future of digital jobs: Which skills will be the most important to businesses?
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More Americans are working independently. What does that mean for employers?
The Shortlist
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Edited by Barbara Tierney
Senior Editor, New YorkThis week, we look at what a growing number of independent workers means for US companies. Plus, an interview with Erika James, the dean of Wharton, and Tech for Execs explains how businesses can put the technology behind “deep fakes” to good use.
The holy grail of employment has long been a full-time job with one employer. But a big chunk of the US workforce has shifted away from that pursuit. In a recent American Opportunity Survey, a remarkable 36 percent of employed respondents identified themselves as independent workers—a category that includes contract, freelance, temporary, and gig workers. That is a hefty increase since 2016, when McKinsey estimated the US independent workforce at 27 percent of the employed population.
An intriguing twist. Senior partner Kweilin Ellingrud and her colleagues found that these independent workers are also far more optimistic than the average American worker about their own futures and the economic outlook. This optimism—buoyed in part by the positivity of first-generation immigrants—is notable considering the hardships that independent workers face, including a lack of access to healthcare. A majority report being concerned about the stability of their employment, compared with 35 percent of permanent workers.
Flux time. With the economy entering a period of uncertainty, what does the growing number of independent workers mean for companies and employment overall? Throughout the Great Attrition era, McKinsey research has shown that most organizations haven’t pivoted fast enough to address the fact that the workforce has indeed changed. Too many still rely on the idea that traditional workers will fill traditional jobs. Looking to those who want flexibility, and understanding why people are attracted to this type of work, will help companies fill vacancies they’ve had a hard time filling. This goes beyond hybrid work models to considering how best to support this growing slice of workers and help them flourish.
US manufacturing as a test case. Although the sector represents just 11 percent of US GDP, manufacturing makes a disproportionate economic contribution, including 20 percent of the nation’s capital investment, 35 percent of productivity growth, and 70 percent of business R&D spending. Manufacturers are in the process of modernizing their operations by pursuing automation, digitization, and greater sustainability to change the way they produce—and where. For these efforts to be effective, companies will need to focus on building the skills of their employees, both existing workforces and contract workers. Independent workers may now be in a better position to claim a slice of these high-skill, high-wage jobs as the industry becomes more innovative and competitive.
Erika H. James is the first woman and the first person of color to be the Wharton School’s dean since the institution was founded in 1881. With a background in organizational psychology, she is an expert on crisis leadership, workplace diversity, and management strategy. She recently sat down with McKinsey partner Monne Williams to talk about the nuances of mentorship, the gains and setbacks she sees in the pursuit of diversity, and how confidence builds a record of success.
Our experts serve up a periodic look at the technology concepts leaders need to understand to help their organizations grow and thrive in the digital age.
Recall that data is the food of algorithms. The generator works to produce a synthetic version of the data it’s fed that is good enough to “fool” the discriminator. The discriminator works to distinguish between data that is genuine and synthetic. At the start, the generator creates random patterns that the discriminator can easily distinguish from “real” data, but produces more representative data with each attempt. Over time, the generator will get very good at generating synthetic data that can fool the discriminator.
GANs have plenty of industry-specific uses as well. Some healthcare providers use GANs to analyze X-ray images to accelerate and improve physicians’ diagnoses. Pharma companies are turning to GANs to learn which of millions of potential compounds are best suited for new treatments. Financial markets are leveraging these algorithms to help predict stock price movements. Retailers are using them to boost personalization by developing a very granular understanding of what customers are most likely to respond to, including customized product descriptions.
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by "McKinsey Shortlist" <publishing@email.mckinsey.com> - 01:13 - 30 Sep 2022 -
What’s the ‘titanium economy’? It could be the key to future US economic growth.
On Point
Edited by Belinda Yu
Editor, Atlanta• Valuable but unfamiliar. There’s a vibrant “titanium economy” made up of companies that you’ve likely never heard of, even though they routinely outperform major stock indexes like the S&P 500. McKinsey senior partner Asutosh Padhi and coauthors Gaurav Batra and Nick Santhanam highlight 35 firms—makers of aerospace parts, color enamels, and other products—that fly under the radar and yet bring immense value to the US economy in their book, The Titanium Economy: How Industrial Technology Can Create a Better, Faster, Stronger America.
• A critical sector. In the US, about 5,000 companies have spurred growth in the industrial tech sector for the past century, providing high-paying jobs, investing in employee development, and powering innovation in manufacturing. But that’s just scraping the surface of what the industry could be, says Padhi. In time, the sector could grow to two or three times what it is today, helping to create good jobs, a cleaner planet, and a more inclusive economy. Read the full interview to learn more about industrial technology, an understated but critical sector.
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:28 - 30 Sep 2022 -
Mining for tech-talent gold: Seven ways to find and keep diverse talent
Harmony Internal - McKinsey
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Edited by Joyce Yoo
Digital Editor, New YorkFinding and retaining diverse talent for technical roles is an ongoing challenge. While companies have made efforts to diversify their talent pools, studies have shown that women and Black employees are underrepresented in technical positions. The benefits of more diverse work forces have been well documented, but progress has been halting and often disappointing even with the best of intentions. While there are no easy fixes, a series of practices is emerging that are showing signs of success in addressing the diversity gap, giving companies an opportunity to rethink how companies approach their talent strategy, according to McKinsey’s Kathryn Kuhn, Eric Lamarre, Chris Perkins, and Suman Thareja. In a new article, they lay out seven practices to help find and keep diverse tech talent. Give it a read to learn how to break through on this critical topic.
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:28 - 29 Sep 2022 -
Manufacturing enhances innovation and competitiveness. How can leaders support it?
On Point
Edited by Seth Stevenson
Senior Editor, New York• Making stuff matters. Since 1997, the US has lost about 25% of its manufacturing firms and about 4.5 million manufacturing jobs, says McKinsey partner Eric Chewning. A lack of manufacturing hinders technical innovation and could make America particularly susceptible to supply chain disruption. In his previous work at the US Department of Defense, Chewning also saw that there was a single supplier for many components of military equipment—this lack of resilience could potentially lead to security vulnerabilities. A resurgent US manufacturing sector would be a valuable national resource.
• Skills to pay the bills. Americans in the middle of the country who do not have college degrees could benefit greatly from an influx of good manufacturing jobs. But in a conversation with McKinsey senior partner André Dua, Chewning notes that tens of thousands of jobs may require new digital capabilities that many workers don’t currently have. Before America can build more products such as computer ships or naval submarines, an infusion of resources could be needed to reskill the manufacturing workforce. See four goals for the future of America where manufacturing plays an important role.
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:32 - 29 Sep 2022 -
Look who’s coming to MAX this year
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*Offer valid through the close of Adobe MAX 2022 registration. VOID WHERE PROHIBITED OR RESTRICTED BY LAW. Valid only for Adobe Creative Cloud members 18 or older with purchase of one (1) full (three-day) Conference Pass to the Adobe MAX event occurring October 18–20, 2022. Limit one (1) discount per person; not available retroactively. To redeem the US$500 savings with purchase of one (1) full Conference Pass for MAX 2022 (reg. street price US$1,895), register at max.adobe.com (or register on-site at the event) and provide promotion code M22CC when prompted. Discount will be applied during checkout. Offer not valid with non-full (three-day) MAX passes or for group, bundle, or volume purchases. Offer is subject to availability and may not be exchanged, sold, or transferred; combined with any other discount or offer; or redeemed for cash or other goods and services.
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Introducing Remote’s Global Benefits Report 2022.
Introducing Remote’s Global Benefits Report 2022.
Hi MD,
We are proud to share Remote’s Global Benefits Report, a first-of-its-kind study on what benefits matter to employees around the world in this new age of work.
What we found:
- Over half (57%) of remote and hybrid employees say flexibility as a benefit is more important than their compensation…
- …and these workers are more happy with their benefits overall! 78% of remote employees and 80% of hybrid employees say they’re satisfied with their benefits compared to just 60% of their on-site peers.
- 60% of employees say they have chosen one job over another because of better benefits…
- …and a majority of company decision markets (78%) have seen greater retention after adding or improving benefits packages!
Remote work is here to stay, and in our globally distributed workforce, benefits can serve as an underrated superpower for employers looking to scale – or an issue that inhibits their growth.
What you’ll get from this report:
- An understanding of emerging benefits trends globally.
- Insights into what benefits employees in different regions consider to be essential and innovative.
- An understanding of flexible work as a modern benefit and what benefits remote workers want and need.
- Guidance on how to build a more diverse, equitable, and inclusive workforce with your benefits offerings.
Don’t make benefits decisions without data to back them up. Download our report today and let us know how we can help you offer the best benefits to your global workforce.
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by "Remote" <hello@remote-comms.com> - 09:05 - 28 Sep 2022 -
Get more out of Adobe Creative Cloud for enterprise business
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How Gen Z sees mental health—and how we can help
Harmony Internal - McKinsey
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Edited by Katherine Tam
Digital Editor, New YorkIt’s a tough time to be young. And when it comes to mental health, we can all do better to help Gen Z. According to a recent McKinsey Health Institute survey by McKinsey’s Léa Arora, Erica Coe, Martin Dewhurst, and Kana Enomoto, European Gen Z respondents report poorer mental health compared to older generations, including millennials, citing climate change, the Ukraine war, and COVID-19 as the major causes of distress. While many Gen Z respondents report stigmatizing themselves on mental health, they are also less likely to stigmatize or discriminate against others with mental illness—and that can open the door to help this generation get the care and support that they need. Dive into the data and make mental health a priority.
Quote of the day
—McKinsey senior partner Asutosh Padhi on his first international experience in the latest episode of My Rookie Moment
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ALSO NEW
The Titanium Economy: How Industrial Technology Can Create a Better, Faster, Stronger America
Asutosh Padhi, Gaurav Batra, and Nick Santhanam reveal manufacturing, an under-appreciated and under-valued sector of the economy, for what it really is: a reliable source of high-paying, domestic jobs and soaring stock prices—a bright spot in an economy that has too often been buffeted by external shocks. #TitaniumEconomyBook
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:32 - 28 Sep 2022 -
Converging crises test the global food system
Re:think
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ON GLOBAL FOOD SECURITY
A more efficient food system can build global resilience
Nicolas DenisA combination of factors is disrupting the global food supply. There have been other food crises in the past, but I think there are a couple of elements that make this different. We have more people to feed in a system that is global, but where there is more geopolitical constraint. And at the same time, emerging trends show a progressive increase of the risk of simultaneous breadbasket failure due to climate change.
There are six breadbaskets in the world. Combined, Ukraine and Russia are a big one. The region produces 28 percent of the world’s exported wheat and 15 percent of its corn. The current war in Ukraine has two implications. Besides being a region where you produce of lot of commodities, it’s also where some of the world’s fertilizer is produced. That’s contributed to the price of fertilizer going up, which impacts farmers’ ability to pay for those fertilizers, which can potentially have an impact on yield.
It’s happening at a time when grain stocks are relatively low in many countries. That’s because since 2020, we saw a spike in the price of agricultural commodities, and countries tend to deplete their stocks more aggressively when the price of commodities is high. The combination of relatively low stocks with a disruption in one of the breadbaskets has a further impact on price.
COVID-19 was a disruption to the food system mostly on a demand level, because people stopped going to restaurants and food service was mostly closed, and those areas are where a lot of fish and red meat are sold. That, in turn, had an impact on the demand for corn. Many people lost jobs, so they had less income, which also had an impact on demand. So, farmers adjusted to that lower demand. Then suddenly, some sectors reopened, creating a bit of a shock on demand.
Add to this an ongoing drought in India and in most places on the planet, including some of the breadbasket regions, for the past few months. That’s led to low production compared with the historical level.“There are six breadbaskets in the world. Combined, Ukraine and Russia are a big one. The region produces 28 percent of the world’s exported wheat and 15 percent of its corn.”
So, there are currently more shocks to the food system than usual.
On July 22, an agreement was signed between Russia and Ukraine and the prices of some commodities have come down. But it only partly solves the problem as there are indicators that planted and likely harvested areas could be 15 to 25 percent lower than historical levels. Current conditions may not produce the same yield as in previous years. In Ukraine, emerging trends show that 30 million to 44 million fewer tons of row crops are likely to be produced in 2023 compared with a typical year. There is less insight into what is happening in Russia, but some of the companies providing seeds and crop nutrition may not be operating under ideal conditions.
What has not been planted has not been planted. No one can change that.To deal with these problems in the shorter term, we must ask: How do we rebuild strategic stocks for the different commodities? And we have to also reflect on how could we protect populations most vulnerable to food insecurity and make food affordable for them? In the medium to long term, private- and public-sector stakeholders can think about how to build more resilience into the food supply chain. One way may be through diversification of the sources of supply—being less dependent on just a few countries. Another could be by trying to eliminate losses and waste, including by using effective seeds and using irrigation efficiently. Roughly 30 percent of all food globally is wasted across the value chain. And then there’s getting both the right level of protein consumption in diets and thinking about the protein mix. There is a factor of ten or more between the least and most efficient ways of producing protein. Focusing on the most efficient proteins can relieve some pressure on the food system.
Use energy as an analogy: the more energy efficiency you create, the more you create resilience in your energy system. The food system is very similar.
ABOUT THE AUTHOR
Nicolas Denis is a partner in McKinsey’s Brussels office. He advises government institutions on sustainable economic development and serves leading companies in agribusiness, fisheries, forestry, and biotech.
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