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| • | Delayed recovery. Economists are forecasting that US economic growth will be muted in 2022. But the pandemic is no longer seen as the main culprit. The biggest risks to growth, economists say, are supply-chain bottlenecks resulting from strong consumer demand for goods, while increased prices and persistently high inflation could limit consumer spending. [WSJ] | | | | • | Reluctant workers. Supply-chain woes are not the only contributor to high inflation. There is a shortage of available workers in many industries. The pandemic-battered restaurant sector, for example, is on a recovery path, recording higher sales and job openings, but the number of workers is falling. Some companies are offering higher wages to lure workers but then may also pass on the extra cost to consumers through higher prices—which could worsen inflation. [WaPo] | | | | • | Why it matters. The pandemic might appear to be receding in some of the world’s major hot spots, but it’s leaving behind major macroeconomic disruptions. Rising commodity prices, surging inflation, supply-chain issues, and labor shortages have triggered a range of financial and operational risks for many companies in the US. It’s become essential to maintain resiliency in the face of constant market uncertainty. | | | | • | Strengthening procurement. The ability of procurement and supply-chain personnel to minimize costs, stabilize prices, and improve overall margins is even more important in an unpredictable environment. To stay relevant and resilient during times of crisis, chief procurement officers will need to reinvent their functions, beginning with developing a digital nerve center for effective cross-functional collaboration. See our article for a detailed roadmap. | | | | — Edited by Arshiya Khullar | | This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. | | You received this email because you subscribed to the On Point newsletter. | | | | Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007 | | | |
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