Acquisition broadens McKinsey’s benchmarking capabilities to offer greater speed and precision in capital project cost estimations across multiple industries
NEW YORK, March 5, 2024 /PRNewswire/ — McKinsey & Company announced today it has acquired, Strategic Estimating Systems (SES) a global leader in delivering economic evaluation solutions and cost-estimating services. The acquisition extends McKinsey’s advanced benchmarking capabilities in capital project management, including those crucial to the energy transition, with a powerful combination of cutting-edge predictive analytics, expert market analysis and best-in-class industry expertise.
McKinsey estimates that over $3.5 trillion will be invested in projects aimed at achieving the net-zero transition by 2050. These projects include green hydrogen production, renewable energy projects, sustainable battery manufacturing, low-emission semiconductor fabrication, and commercial-scale carbon capture programs. The integration of SES’s comprehensive industry benchmarks across the energy, industrial gas, pharmaceuticals, pulp and paper, renewable energy, and biofuels sectors, combined with the extensive expertise of McKinsey’s Capital Analytics team, enables the firm to deliver capital cost estimates with greater accuracy and over three times faster than traditional methods.
“The capital projects ecosystem is presented with a once-in-a-generation chance to aid in transforming economies to achieve net zero. By integrating SES’s unmatched capabilities, we’re not only enhancing our sustainability services, such as carbon capture, but also expanding the scope of our existing Capital Excellence capabilities to crucial industries and wider geographies,” said Justin Dahl, Partner and Global Leader of McKinsey & Company’s Capital Analytics. “This allows our clients to gain an independent perspective on value, cost, and timing at every phase of the capital project lifecycle, thereby improving bottom-up estimating. Committed to innovation and excellence, this acquisition empowers us to explore new value dimensions and further refine our expertise in bottom-up estimating for our clients.”
A well-established and distinctive player in the economic evaluation solutions space, SES has been consistently recognized for having the world’s deepest benchmarks for capital cost estimating. They are a renowned firm known for identifying savings opportunities, increasing value improvement, reducing the risk of cost overruns, and helping to realize the target value. By merging SES’s and McKinsey’s proprietary data, analytics, and expertise in capital project management, McKinsey’s clients will gain enhanced foresight and certainty in assessing the capital expenditures of large-scale projects.
“We are thrilled to join McKinsey and expand our footprint to serve more clients on a larger scale,” said SES Founder and CEO Mike Monteith, who joins as Leader of McKinsey & Company’s Capital Analytics. “McKinsey is unparalleled in developing scalable and sustainable transformation strategies, leveraging industry leading insight and expertise in capital excellence. By working together, we will amplify our strengths, driving greater impact for clients at every stage of the capital project lifecycle, and delivering end-to-end transformations that create lasting value.”
About McKinsey & Company
McKinsey is a global management consulting firm committed to helping organizations accelerate sustainable and inclusive growth. We work with clients across the private, public, and social sectors to solve complex problems and create positive change for all their stakeholders. We combine bold strategies and transformative technologies to help organizations innovate more sustainably, achieve lasting gains in performance, and build workforces that will thrive for this generation and the next.
About Strategic Estimating Systems (SES)
Founded in 2005, Houston-based SES is globally recognized for its expertise in bottom-up cost estimations, benchmarking, market analysis and probabilistic analytics which are used to scope the likely expenses associated with planning, designing, and completing capital projects.
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SOURCE McKinsey & Company
