How can European executives protect and grow their companies in a time of crisis?

Six dimensions of resilience ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Alexandra Mondalek   Associate Editor, New York Europe's leaders put to the test In the news • Factories go dark in Europe. European manufacturers that produce goods ranging from glass to toilet paper are weighing factory closures and layoffs as they confront an existential threat from increasing energy prices. Higher prices also mean consumers are likely to reduce their spending on nonessential products, creating even greater pressure on businesses. In July, factory production saw the biggest decline in more than two years, falling 2.3% compared with the previous year. Executives are working with local and regional officials to find solutions, but the swiftness with which the crisis is spreading has upped the stakes. [NYT] • The European challenge. Life in Europe is being challenged by the wartime economy, which has put downward pressure on real-wage growth and living standards. But Europe has been tested before. Sharing energy resources and financial assets are two ways the bloc may be able to endure simultaneous crises, but many nations also have to contend with their own debt loads, which grew during the COVID-19 pandemic. That could jeopardize the likelihood of regional solidarity. [Bloomberg] The latest McKinsey scenarios, undertaken in partnership with Oxford Economics, suggest that European GDP will most likely contract overall in 2023. On McKinsey.com • European leaders' resilience playbook. Challenging economic conditions are creating a defining moment for European executives. Rather than rely on the old rules for navigating a downturn that might have been relevant during the COVID-19 pandemic, Brexit, or the eurozone crisis, leaders should develop a resilience agenda that addresses short-term issues—like supply chain disruptions—as well as longer-term challenges, such as geopolitical shifts, explain McKinsey senior partners María del Mar Martínez and Homayoun Hatami and their coauthors. • Six dimensions of resilience. Identifying where a business faces its most pressing challenges will help executives understand how to create a nimble strategy against a downturn. Some, for instance, may be financially constrained, while others may not be able to produce their goods given supply chain shocks. Once a business identifies where its vulnerabilities are, it can then move on to run repeated scenario analyses to adapt to new challenges quickly. See six dimensions of institutional resilience that can help European companies withstand repeated shocks. Explore our resilience framework Was this forwarded to you? Sign up here. Or send us feedback—we'd love to hear from you. Follow our thinking 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. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007