New York has experienced constant economic transformation throughout its history, and now faces the need to reinvent itself again to stay ahead in the global economy. The McKinsey Global Institute (MGI) has identified 18 arenas of competition—industries with high growth and dynamism—that could reshape the global economy in the next 10 to 15 years. These arenas include e-commerce, cloud services, robotics, shared autonomous vehicles (SAVs), AI software and services, and more.
New York's current competitive advantage lies in arenas where its companies are already poised to compete and lead. These include:
- E-commerce: New York is a leader in e-commerce, attracting significant private equity and venture capital investment and having a high concentration of e-commerce jobs.
- Digital technologies: The region is a hub for digital ads, streaming video, and cybersecurity, with substantial investment and patent activity.
- Pharmaceuticals: New York's strength in pharmaceuticals, particularly in drugs for obesity and related conditions, is driven by its talent pool and research institutions.
Emerging opportunities for growth include arenas that could unlock significant growth for other leading New York sectors:
- AI software and services: AI could drive growth across industries, with particularly strong potential in finance, media, and pharmaceuticals.
- Cloud computing: Cloud adoption could boost EBITDA margins in finance, pharmaceuticals, and media and entertainment.
- Robotics: Robotics could have a major impact on New York's retail, life sciences, and healthcare sectors, accelerating e-commerce growth and innovation in pharmaceuticals.
Transformative improvements for New Yorkers could come from advancements in:
- Urban mobility: EVs, SAVs, and future air mobility could reshape urban transit, but require infrastructure investment and thoughtful regulation.
- Modular construction: This could help address New York's housing shortage by reducing costs and construction time, but requires supportive policies and partnerships.
The future of New York depends on strategic investments in technology, workforce development, and infrastructure, as well as prioritizing targeted investments and partnerships in emerging fields. By leveraging its legacy of creativity and focusing on innovation, talent, and equity, New York can continue to lead the world into the future.
