reduces labor time, is on the horizon. Start-up digital players and leading construction equipment manufacturers are testing autonomous bulldozers, excavators, and pile drivers with their partners. EPCs that adopt such technologies have the potential to capture higher margins from efficiency gains, and owners who create opportunities to pilot new equipment and materials on their projects can share in those benefits.
Strong tailwinds from the IRA have made certain market constraints facing US renewables more challenging, but the tailwinds also present a major opportunity for stakeholders to resolve EPC and labor shortages collaboratively. In a market that is expanding fast enough for both incumbents and emerging players to grow, owners can engage with EPCs in win–win partnerships that reach beyond adversarial contract negotiations to capture the growth opportunity. Our net-zero future depends on it.
Avery Black is a consultant in McKinsey’s New York office, where Humayun Tai is a senior partner; Katy Bartlett is an associate partner in the Denver office; David Frankel is a partner in the Southern California office; Kevin Kroll is a partner in the Chicago office, where Kimika Padilla is a consultant; James Lambrou is an associate partner in the Austin office; and Dave Sutton is a consultant in the Calgary office. The authors wish to thank Jim Banaszak, Emily Bergan, Michael Brock, Zak Cutler, David Frankel, Charlotte Herhold, Alexandra Holderied, Garo Hovnanian, Maxwell Koehler, Ryan Luby, Alyssa Restauro, Christian Staudt, and the McKinsey Renewables and Capital Excellence teams for their contributions to this article.
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Accelerating the journey to net zero
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