McKinsey’s Matt Rogers on the next industrial revolution

1. April 2014

Date: 01-04-2014
Source: Fortune

Rogers’ new book with Stanford Professor Stefan Heck argues that the business world is fast approaching a shortage of valuable natural resources. Here’s what managers need to know.

Matt Rogers of McKinsey & Co.

FORTUNE — Over the next 15 years, another 2.5 billion people in the developing world will join the middle class. China will add 2½ new cities the size of Chicago every year for the foreseeable future and will have 221 cities with over a million in population by 2025 (compared with 35 cities this size in Europe today). That kind of growth is going to create an unprecedented demand for oil, gas, steel, precious metals, water, and other precious resources. If we keep on our current course of consumption, commodity prices, food prices, and pollution levels are likely to spike, greatly increasing risks for business.

In their insightful new book Resource Revolution: How To Capture the Biggest Business Opportunity in a Century McKinsey director Matt Rogers and Stanford Professor Stefan Heck lay out a compelling road map for how managers need to change the way they think about resources if they want to not only survive but also thrive in the 21st Century.

Fortune’s Brian Dumaine caught up with Matt Rogers recently to discuss the book, which will be published on April 1.

The conventional wisdom about resources is that we’re running out, and we’re all going to die. But you believe we’re about to enter what you call a a resource revolution and that it will be the biggest economic opportunity of the 21st century.

Over the next two decades global growth will stress our resources, and that has a lot of people concerned. What gave us confidence to write the book is that we saw that you could combine advances in nanotechnology, materials science, information technology, and biology with traditional industrial technologies and meet resource requirements more easily than most expect. Read the rest of this entry »