Reinvesting in America

Over the next ten years, nearly $2 trillion dollars in federal funding for infrastructure upgrades, clean energy, domestic semiconductor manufacturing, and science and technology innovation will flow into the US economy. Driven by three pieces of legislation—the Bipartisan Infrastructure Law (BIL), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS)—this funding aims to lower carbon emissions substantially and boost US economic competitiveness, innovation, and productivity.

To maximize the impact of this generational investment, leaders across the public and private sectors will need to work together to reinvest in America.

Featured insights

BIL investments aim to lay the foundations for inclusive, sustainable prosperity by refurbishing aging roads, bridges, railways, and ports. They also seek to expand internet access to unserved and underserved communities, enhance water quality by replacing lead pipes, upgrade the nation’s power grid, build a nationwide electric vehicle-charging infrastructure, and more.

The Inflation Reduction Act: Here’s what’s in it

– The Inflation Reduction Act contains $500 billion in new spending and tax breaks that aim to boost clean energy, reduce healthcare... costs, and increase tax revenues.

Will a labor crunch derail plans to upgrade US infrastructure?

– There’s a historic and widening labor shortfall in the US construction sector. Yet it extends far beyond jobsites and varies... by location, demanding tailored solutions.

Climate tech competitiveness: Can the United States raise its game?

– The United States has an opportunity to turn its innovation advantage in climate technologies into the basis for a thriving manufacturing... and export sector.

‘Dig once’ could help states manage material and worker shortages

– Multiple excavations for infrastructure improvements can be disruptive to the public. Coordinating projects could minimize negative... impacts and help states manage supply chain and labor shortages.

Are states ready to close the US digital divide?

– More than $100 billion in federal funding is being deployed to bring broadband to every American household as part of the largest... public investment to connect Americans since the creation of the Interstate Highway System.

A new era of US infrastructure grants

– The Bipartisan Infrastructure Law introduces a new level of funding considerations for state and local governments. States with... high ambitions are already in the thick of it—what now?

Navigating the complexity of the Bipartisan Infrastructure Law

– The act funds hundreds of programs. Our BIL Navigator has been designed to help governments identify programs, monitor key deadlines,... and more.

Delivering on the promise of federal infrastructure funds in states

– Thanks to the combined impacts of the Bipartisan Infrastructure Law and pandemic-related recovery bills, states and localities... could have a meaningful effect on lives and livelihoods.

BIL Navigator

Explore Bipartisan Infrastructure Law programs and monitor upcoming deadlines with BIL Navigator.

Strategies to lead in the semiconductor world

CHIPS funding is geared toward powering the engines of innovation and global competitiveness through the construction of new microprocessor manufacturing and R&D facilities, expanding the nation’s science and technology base, boosting participation in STEM education and creating a broader, more inclusive high-tech workforce.

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How semiconductor makers can turn a talent challenge into a competitive advantage

– Semiconductor companies are on the cusp of a decade of opportunity, but success will be predicated on the ability to attract and... retain the best and brightest.
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Rapid throughput improvement at mature semiconductor fabs

– A shortage of automotive chips has shut down OEM production lines. How can fabs rapidly increase wafer output as vehicle demand... surges in the wake of the COVID-19 pandemic?
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Strategies to lead in the semiconductor world

– Semiconductor companies can take different paths to capture new opportunities as demand continues to outstrip supply.

Macro perspectives for leaders

Will a labor crunch derail plans to upgrade US infrastructure?

– There’s a historic and widening labor shortfall in the US construction sector. Yet it extends far beyond jobsites and varies by location, demanding tailored solutions.

Are states ready to close the US digital divide?

– More than $100 billion in federal funding is being deployed to bring broadband to every American household as part of the largest public investment to connect Americans since the creation of the Interstate Highway System.

A new era of US infrastructure grants

– The Bipartisan Infrastructure Law introduces a new level of funding considerations for state and local governments. States with high ambitions are already in the thick of it—what now?

Navigating the complexity of the Bipartisan Infrastructure Law

– The act funds hundreds of programs. Our BIL Navigator has been designed to help governments identify programs, monitor key deadlines, and more.

BIL Navigator

– Explore Bipartisan Infrastructure Law programs and monitor upcoming deadlines with BIL Navigator.

Delivering on the promise of federal infrastructure funds in states

– Thanks to the combined impacts of the Bipartisan Infrastructure Law and pandemic-related recovery bills, states and localities could have a meaningful effect on lives and livelihoods.

Impact officer in chief: The state infrastructure coordinator’s role

– As funding from the Bipartisan Infrastructure Law becomes available, a coordinator could help states set priorities and allocate resources across agencies.

The US Bipartisan Infrastructure Law: Breaking it down

– What’s in it? What does it aim to do?

Global Infrastructure Initiative

McKinsey’s Global Infrastructure Initiative (GII) is a community of the world’s most senior leaders in infrastructure and capital projects, committed to identifying tangible ways to improve the delivery of essential infrastructure.

Roads, Highways, Bridges

Bridging the labor mismatch in US construction

– US construction projects are short-staffed today, and the problem is set to get worse. Here’s what the sector can do to... close the gap.

Built to last: Making sustainability a priority in transport infrastructure

– Every year, trillions of dollars are invested in the infrastructure that helps us—and our goods—get around. What will... it take to move the transport infrastructure industry toward carbon zero?

Delivering sustainable infrastructure: Insights from industry leaders

– An interview with Lara Poloni, president of AECOM, and Nick Smallwood, CEO of UK’s Infrastructure & Project Authority... about the importance of sustainable infrastructure.

Accelerating sustainable infrastructure: An investor’s perspective

– Sadek Wahba, chairman and managing partner of I Squared Capital, explains how to overcome challenges for funding sustainable infrastructure... and why equitable access is so important.

Finding the right (of) way to efficient road operation and maintenance

– Comparing operation and maintenance performance of different roads is complex, but it can help improve efficiency for roadway... owners and operators and unlock much-needed capital.

Road work ahead: The emerging revolution in the road construction industry

– Four technology trends could help improve road functionality, construction, and maintenance, creating opportunities for greater... safety, efficiency, and economic success.

Reimagining infrastructure in the United States: How to build better

– Infrastructure agencies need to prepare for two very different scenarios—a sharp rise in funding or a precipitous drop.

Power

An AI power play: Fueling the next wave of innovation in the energy sector

– How Vistra Corp. is partnering with McKinsey to improve efficiency and reduce emissions by using AI

How to increase grid resilience through targeted investments

– Extreme weather events are taking a toll on electric grids. Modeling climate-change resilience can provide valuable insights when... and where they’re needed most.

Power and people: How utilities can adapt to the next normal

– With economies and energy demand hit hard by the COVID-19 crisis, European and North American utilities need to rethink their... operations to put themselves into position for long-term success.

Getting a grip on bad debt: Practical steps to help utilities boost their resilience

– Utilities that reshape their credit and collections processes could position themselves well in advance of a downturn—and see... other benefits, such as improving customer experience and loyalty.

Why, and how, utilities should start to manage climate-change risk

– Extreme weather events are exacting a high—and rising—price. Utilities need to devise and implement strategies to... adapt.

How utilities can speed up their digital transformations

– Three critical steps can help utilities overcome challenges that are impeding the shift to digital.

Accelerating digital transformations: A playbook for utilities

– Utilities trying to reinvent themselves as digital enterprises have found it hard to scale up from digital pilots. Adopting digital... ways of working, adding talent, and modernizing IT will hasten transformation.

Passenger & Freight Rail

Safe, smart, and green: Boosting European passenger rail’s modal share

– Despite pandemic-related decline in demand, European passenger rail has potential for sustainable, long-term growth–companies... and governments can take action to make investments that will help improve modal share.

How will you be getting around in 2030? It depends on where you live.

– There won’t be much of a shift away from private vehicles in North America over the coming decade—largely because... there aren’t many incentives for drivers to change their behavior.

Broadband

Are states ready to close the US digital divide?

– More than $100 billion in federal funding is being deployed to bring broadband to every American household as part of the largest... public investment to connect Americans since the creation of the Interstate Highway System.

How does the digital divide impact residents in your state?

Explore the adoption and access of broadband internet across underserved communities in the United States.

Connected world: An evolution in connectivity beyond the 5G revolution

– Connectivity is undergoing evolutionary change in most parts of the world—and, in select areas, a genuine leap into the frontier.

Water

The US Bipartisan Infrastructure Law: Reinvesting in water

– The legislation represents a transformative shift in the amount of funds available to improve the country’s water infrastructure.

US water infrastructure: Making funding count

– A much-anticipated wave of funding for US water infrastructure could be unlocked in the coming months and years. Are utilities... and investors ready?

How to use analytics to improve water asset management

– Following a three-step approach, water utilities can harness analytics to enable predictive maintenance of assets and significantly... reduce costs.

Infrastructure Safety & Resiliency

Protecting people from a changing climate: The case for resilience

– Our new study lays bare the potential impact of climate risks for people across the globe—and underscores the need to protect... the most vulnerable and build resilience.

Climate risk and response: Physical hazards and socioeconomic impacts

– How could Earth’s changing climate impact socioeconomic systems across the world in the next three decades? A yearlong, cross-disciplinary... research effort at McKinsey & Company provides some answers.

Three steps to future-proofing infrastructure assets from climate change

– For asset owners, it pays to plan ahead for the risks of extreme weather events

Airports, Ports, and Waterways

Turning on the revenue tap: How US airports could make the most of additional liquidity

– Facing a still uncertain future, airports could consider new ways to diversify their revenue streams and sustain their operations... for the long term.

Mission Possible Partnership – Path to a net-zero aviation sector

October 2021 - The Mission Possible Partnership (MPP) is an alliance of organizations brought together by World Economic... Forum (WEF), RMI, the Energy Transitions Commission and We Mean Business Coalition that is addressing one of the toughest challenges in climate change: decarbonizing seven of the world’s hardest-to-abate sectors by 2050.

Built to last: Making sustainability a priority in transport infrastructure

– Every year, trillions of dollars are invested in the infrastructure that helps us—and our goods—get around. What will... it take to move the transport infrastructure industry toward carbon zero?

Transit, Ferries, and Zero Emissions School Buses

Building a transport system that works: Five insights from our 25-city report

– We benchmarked urban-transport systems in 25 cities around the globe to find out what goes into the making of a smooth commute.

Winning ridership for the next normal

– Transit agencies may need to win over former and new riders. Eight ideas can help them better meet rider needs.

The future of urban transit: A conversation with leaders from Uber and Via

– Countless realities—changing customer expectations, the COVID-19 pandemic, technology—are reshaping urban transit.... David Reich and Chris Snyder share their visions for the future.

A more personalized world: An interview with the CEO of Tokyo Metro

– Improved technology with better data, more attractive destinations, and increased harmony with infrastructure show how public... transportation can help riders spend their days doing what they like.

Environmental Remediation

Protecting people from a changing climate: The case for resilience

– Our new study lays bare the potential impact of climate risks for people across the globe—and underscores the need to protect... the most vulnerable and build resilience.

The big choices for oil and gas in navigating the energy transition

– As oil and gas companies respond to the current economic discontinuities, they must choose where and how to compete as the world... transitions to a low-carbon future.

Why investing in nature is key to climate mitigation

– A new consultation paper from McKinsey and the World Economic Forum explores the role that natural climate solutions can play... in helping to address climate change and the destruction of nature.

Valuing nature conservation

– A methodology to evaluate where safeguarding natural capital could have the biggest impact on climate, economies and health.

Electric Vehicle Infrastructure

Net-zero emissions in US government fleets

– Through its use of electric vehicles, the US government stands to serve as a role model for accelerating progress in the electrification... journey and reaching net-zero commitments.

Building the electric-vehicle charging infrastructure America needs

– The United States needs many more EV-charging stations—and federal funds for them are coming. Seven principles could help... US states and companies accelerate this buildout effectively.

Capturing the battery value-chain opportunity

– Companies and governments must move quickly to gain a foothold in the fast-growing battery market for electric vehicles.

Unlocking growth in battery cell manufacturing for electric vehicles

– Demand for electric vehicles is soon expected to outpace the ramp-up of battery cell production. Accelerating the build-out of... battery cell gigafactories can help the industry stay on course.

The future of EV charging infrastructure: Executive perspectives

– Frank Mühlon of ABB and Giovanni Palazzo of Electrify America offer their insights into today’s and tomorrow’s... priorities for scaling EV charging infrastructure to meet demand.

Shaping the future of fast-charging EV infrastructure

– To help electric vehicles reach ubiquity, governments and EV charging companies must ensure the availability of fast-charging... infrastructure doesn’t become a bottleneck for growth.

EV fluids: Say goodbye to the oil change

– With the rise of electric vehicles, the massive combustion engine fluids market will slowly begin to evaporate. Here’s what... will replace it.

Climate and sustainability

Failure is not an option: Increasing the chances of achieving net zero

– Countries and companies globally are taking action to pursue net-zero emissions, but their plans could easily be derailed... by myriad factors. Here are some considerations for helping to keep them on track.

Navigating America’s net-zero frontier: A guide for business leaders

– The US government has a goal: net-zero emissions by 2050. Our analysis maps out a pathway to this net-zero frontier—and the growth... opportunities that $27 trillion of capital spending could create.

The net-zero transition: What it would cost, what it could bring

– This McKinsey report offers a detailed look at the economic and societal impact of the transition to net-zero carbon emissions... by 2050.

Capital Excellence

Closing labor gaps to revitalize US infrastructure

– US construction projects are short-staffed today, and the problem is set to get worse. Here’s what the sector can do to... close the gap

Charting new approaches to capital project delivery

– Welcome to the February 2022 edition of Voices on Infrastructure, which explores what it will take to successfully scale... up the delivery of capital projects to meet net-zero targets.

Improving project development and delivery

– Welcome to the December edition of Voices on Infrastructure, tackling how we improve project development and delivery... at this critical juncture.

Project delivery hubs: Analytics for better megaproject outcomes

– By providing tailored project-delivery intelligence to decision makers, an analytics hub can reduce risk and increase the odds... of successful completion.

An ecosystem of partners: The foundation of capital project excellence

– To deliver large capital projects in heavy industry more efficiently, project owners can consider forming an ecosystem of partners... and fundamentally rethinking ways of working together.

Related insights

America 2021

– After 2020 disrupted lives and livelihoods, the country is geared for a reset. In America 2021, leaders, innovators, and changemakers... have an opportunity to make a telling difference. Here are the first in a yearlong series of our contributions to the discussion.

Making the shift to sustainable and inclusive growth

Explore insights on the new era of growth—one that doesn’t treat growth and positive impact as opposing forces.