How to manage the coming wave of investment in capital projects
McKinsey Talks Operations
The Complexity of Capital Projects
I think the point around complexity is key to acknowledge, and I'm sure many listeners who are in the capital space know this. As the speed of execution goes up, the interdependencies between those different stakeholders that need to be able to work together in a seamless fashion increases exponentially as well. Think about the amount of green steel we need to produce in order to actually decarbonize projects. And that's frankly not enough capacity in the market today in order to produce sufficient amount of low carbon steel. On average, we're seeing 10 to 15% cost increases in the US today; schedules will continue to get squeezed. This is going to be a very difficult task to deliver against.
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