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Data-Driven Decision-Making

Data-Driven Decision-Making: The Key to Thriving in the Digital Age

In today's digital world, data is viewed as a critical asset for businesses across industries. Organizations have access to an unprecedented amount of data on their customers, products, and operations. This wealth of data has given rise to a new paradigm in decision-making - data-driven product decision-making.  The Power of Data-Driven Decision Making  The growing importance of data-driven decision-making across product development is emerging as a key component of the analytics landscape. Data-driven decision-making implies using facts, metrics, and data to navigate strategic business insights that align with the organizational goals, objectives, and initiatives.  It involves collecting, analyzing, and interpreting information to discover insights into customer behavior, market trends, and product performance.   Organizations are realizing their data's full value and integrating frameworks to make better decisions with data daily. However, organizations need to make data-driven decision-making the norm by cultivating a culture that fosters critical thinking and curiosity. Establishing these core capabilities will help promote data-driven decision-making across all levels and further investigate information to uncover critical insights that drive action.  Read more: Authenticity Over Greenwashing: How Brands Are Engaging with Customers and Building Trust?  Nurturing a Data-Driven Culture for Business Growth   Embracing a data-driven culture is key to progress for every organization. A data-driven culture focuses on boosting the efficiency of data operations as well as strategic planning by reducing any errors that could increase costs. In addition, it boosts overall growth by enhancing collaboration and communication, giving more power to employees, and cultivating a mindset of constant enhancement. Data-driven insights help identify new ideas and hidden trends, thus creating a path for developing innovative products.   In essence, adopting a data-driven culture is a necessity for businesses to thrive in the ever-growing competitive landscape. A data-driven culture not only facilitates business growth but also presents invaluable insights to uncover new opportunities. Such culture helps prove important in addressing challenges and navigating crises.   A data-driven culture focuses on business agility, innovation, and operational efficiency. This integration of a data-driven ethos is a strategic imperative for organizations toward sustained growth and resilience. By adapting to market changes and anticipating challenges, organizations can further mitigate the risk of errors and enhance confidence in their actions.  Read more: A Critical Overview of Big Data and Bigger Dilemmas for Enterprises  Steps to Make Data-driven Decisions  To foster a data-driven culture, organizations can integrate the following steps to find and use their data effectively.  Step 1: Identifying business objectives  This step involves understanding the organization’s executive and downstream goals. This involves identifying increasing sales numbers and website traffic or as ambiguous as increasing brand awareness. This will later assist with key performance indicators (KPIs) and metrics that are influential for decision-making. They help determine which data to analyze and what queries to ask for analyzing key business objectives.   Step 2: Surveying business teams for key data sources  To ensure growth, it is critical for the organization to gain input from people to set short and long-term goals. These inputs further help in making informed analyses based on data collected from certified data sources. Valuable inputs from across the organization help guide analytics deployment and future state and success measurements to identify progress.  Step 3: Collecting and preparing the required data  Accessing quality and trusted data can be a big hurdle for business if the accumulated information is from many disconnected sources. Once they have an idea of the breadth of data sources, they can start by preparing data with high impact and low complexity. Prioritizing data sources with the biggest audiences can further help make an immediate impact.  Read more: Savings Squeeze: A Looming Threat on the Economic Landscape  Step 4: Exploring data  Visualizing the data is crucial for data-driven decision-making. Representing the derived insights in a visually impactful way offers a better chance of influencing the decisions of senior leadership. With many visual elements like charts and graphs, data visualization presents an accessible way to understand trends and patterns in data.   Step 5: Develop insights  Critical thinking with data indicates finding insights and communicating them in an engaging way. Visual analytics is an intuitive approach to answering questions about the collected data. It further helps in discovering opportunities or risks that impact success or problem-solving. Embracing a modern analytics solution for decision-making is important to gain a comprehensive view of the customer’s journey as well as to review line-of-business relationships.  Harnessing the Power of Data-Driven Culture  Data is the new currency of today's modern world, and organizations are adopting a data-centric ethos to gain a competitive edge. Driven by an exponential surge in data generation, organizations are scrutinizing data on a scale previously unimaginable.  In data-centric companies, data empowers leaders to make decisions that transform their organizational operations. A data-driven culture fosters an environment that values information, ensuring its accessibility and utilization for decision-making purposes. In this culture, data is not only collected but also analyzed, interpreted, and integrated across all company processes. It helps prioritize widespread data literacy and maturity and embrace data-driven insights as the standard rather than the exception.  The adoption of data-driven cultures involves integrating paradigms and data science methodologies into decision-making processes, thus bringing value to organizations. These breakthroughs are simplifying the process of interpreting and storing data, enabling organizations to integrate strategic decision-making to drive business growth.  Read more: Top 5 Data Analytics Companies Transforming Business  The Future of Data-Driven World  In today's digital age, the infusion of data across every facet of business operations is reshaping strategies, decision-making, and operations. This widespread adoption of data-driven practices is predicted across all sectors.  A data-driven decision-making framework plays a pivotal role in societal progress. Embracing this transformative shift is imperative for organizations to attain a substantial competitive advantage while also contributing to a more streamlined and transparent world. However, navigating this landscape can be challenging as businesses need to take several critical steps to ensure they are making the most of their data for product decision-making.  A fundamental framework for businesses in the digital age, navigating the data-driven analytics landscape effectively can further help them gain valuable insights, improve their products, and stay competitive in rapidly evolving markets. Businesses need to understand the components of the analytics landscape to leverage data for product decision-making effectively.   With the data landscape continuing to evolve, businesses that harness the power of data will witness a distinct advantage in meeting customer requirements as well as achieving their strategic goals.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose, merging content and context to overcome business challenges. With our Brand Promise of "Life's Possible," we consistently deliver enduring value, ensuring the utmost client delight.    A leading enterprise in Data Solutions, SG Analytics focuses on integrating a data-driven decision framework and offers in-depth domain knowledge of the underlying data with expertise in technology, data analytics, and automation. Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance.      About SG Analytics     SG Analytics (SGA) is a global data solutions firm that harnesses data with purpose across the data value chain - from origination, aggregation, management, modernization, and analytics to insights generation to create powerful business outcomes for its customers. Through its research and data analytics consulting services, SGA marries content with context to provide bespoke solutions to its customers, enabling them to improve efficiency, scale, and grow. The company has a presence in New York, London, Zurich, Seattle, Austin, San Francisco, Toronto, Pune, Bangalore, Hyderabad and Wroclaw. The firm serves customers across the banking, financial services and insurance (BFSI), technology, media and entertainment (M&E), and healthcare sectors, amongst others, including Fortune 500 companies.      Apart from being recognized by reputed firms such as Analytics India Magazine, Everest Group, and ISG, SG Analytics has been recently awarded as the top ESG consultancy of the year 2022 and Idea Awards 2023 by Entrepreneur India in the “Best Use of Data” category. 


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The Path Ahead for Robotaxis

Navigating the Roadblocks: The Path Ahead for Robotaxis

Robotaxis, which aimed to transform urban transportation, faced significant skepticism in recent months due to regulatory headwinds, operational issues, and a decline in public trust. Nevertheless, this technology has a long-drawn incubation period and is poised to surmount short-term hurdles, ultimately unlocking its potential to become a trillion-dollar industry.  Over the last decade, investments in global robotaxis, robot shuttles, and robot trucks have totaled nearly $42.5 billion, per data from research firm Yole Group. However, investors now appear rattled due to the prolonged return timelines. This unease has been exacerbated by setbacks in the industry, including the withdrawal of Cruise, the implementation of stringent legislation in the UK, and a series of reported accidents and operational issues. The most recent development is Aptiv, an Irish automotive company, discontinuing capital support for Motional, a Boston-based autonomous automaker. Concurrently, per TechCrunch,  Apple is abandoning its secretive and long-running autonomous electric car project.   The global robotaxi market is projected to experience an extraordinary CAGR of 91.8%, expanding from $0.3 billion in 2023 to $47.5 billion in 2030, according to MarketsandMarkets. The complex and multi-stage process of developing and commercializing robotaxis is expected to follow a positive S-curve adoption trajectory. This process can be broadly summarized in three stages. First, technical feasibility demonstrations to validate safe and reliable operation under targeted conditions. Second, technology optimization, integration, and refinement of vehicle design to facilitate scalability in manufacturing and deployment. Third, efficient expansion into new locations and operating conditions.  Read more: Nvidia’s AI Dominance: How Long Will This Bull Run?    Currently, the majority of robotaxi operators are navigating through the first stage, while a few are striving to achieve scale in the second stage. Geofencing will be rigorously applied to robotaxis for the foreseeable future, restricting revenue services to specific areas extensively tested for operation. S&P Global predicts that widespread adoption of autonomous technology is at least a decade away. Despite the prolonged incubation period in commercializing robotaxis, there had been optimistic short-term growth forecasts, which contribute to skepticism when these expectations are not met.  Figure 1: Mass-market Adoption S-curve   Source: RMI  Autonomous vehicles, while holding the promise of revolutionizing urban transportation, are still in their infancy. According to S&P Global, the industry's primary focus now remains on automated, rather than fully autonomous, driving. The widespread deployment of Level 2+ and 3 systems is anticipated to constitute at least 31% of new vehicle sales globally by 2035. Although fewer than 6% of light vehicles sold in 2035 are expected to possess Level 4 functionality, the majority of this segment will be comprised of MaaS robotaxis, reaching approximately 800,000 vehicles globally.  Figure 2: Levels of Vehicle Autonomy  Source: Ptolemus  Figure 3: 2035 Global Light Vehicle Sales by Autonomy   Source: S&P Global  Read more: Level Up: The Resurgence of Video Game Startups in 2024    In order to realize its projected long-term capabilities, the landscape must adapt to meet the specific needs of robotaxi technology. Initially viewed as a potential solution to traffic congestion and road safety, recent disruptions indicate that robotaxis might unintentionally exacerbate the issue. Presently, urban transportation infrastructure lacks the capacity to accommodate the technological demands of robotaxis, as it was originally designed for conventional manual transport. However, it is expected to undergo evolution in the coming decade to better align with the advancing technology. China recently opened its first intelligent expressway, which was designed specifically for fully autonomous driving.  The industry's growth is currently hampered by substantial regulatory headwinds. These challenges arise partly due to insufficient infrastructure and partly due to operational shortcomings among service providers. Notably, in California, recent legislation presented in the state Senate empowers city and county governments to enforce more stringent limitations and regulations on robotaxi services than those mandated by state agencies. Additionally, existing federal regulations impose a cap of 2,500 vehicles per company for the testing of autonomous vehicles. The regulatory framework within the industry is still evolving as policymakers strive to find an optimal balance for effective operations.  Moreover, robotaxis currently faces challenges in competing with traditional taxis, particularly in terms of pricing and assured safety. These companies find themselves in competition with Uber drivers, who often operate mid-priced vehicles and handle maintenance independently. In contrast, robotaxis are equipped with expensive technology which requires continuous monitoring and occasional human intervention. As the technology reaches higher levels of adoption and scales their services, robotaxis will be able to unlock their true potential and effectively compete with ride-sharing services.  Read more: The Dragon's Dilemma: China's Path in a Shifting Global Landscape    Robotaxis holds the potential to transform the urban transportation landscape by offering a more affordable, safer, and efficient alternative that saves time. Over the past decade, investors have acknowledged this potential and heavily invested in startups with optimistic short-term growth expectations. However, recent disruptions in the industry have rattled these expectations. It's essential to recognize that the technology behind robotaxis inherently requires a more extended incubation period, undergoing fine-tuning before achieving widespread commercialization. Furthermore, the overall environment for robotaxis, including infrastructure, regulations, and pricing, needs to evolve to create an optimal setting for industry to unlock its trillion-dollar potential.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose and merging content and context to overcome business challenges. With our brand promise of "Life's Possible," we consistently deliver enduring value and ensure the utmost client delight.     Partner of choice for lower middle market-focused Investment Banks and Private Equity firms, SG Analytics provides offshore analysts to support across the deal life cycle. Our complimentary access to a full back-office research ecosystem (database access, graphics team, sector & and domain experts, and technology-driven automation of tactical processes) positions our clients to win more deal mandates and execute these deals in the most efficient manner. 


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Regional Banks Face Growing Risks with Multifamily Loans

Rent Rolls to Red Flags: Regional Banks Face Growing Risks with Multifamily Loans

Regional banks, particularly those with exposure to multifamily property or apartment building loans, are facing an impending problem. Financial challenges induced by high inflation and debt costs, limited credit opportunities, and increased insurance expenses and property taxes pose significant risks in the coming months.   In the aftermath of the financial crisis, there was a notable surge in loans for apartment construction, with banks accounting for 40% of all lenders, according to the Mortgage Bankers Association. The decline in single-family home constructions led to increased demand for apartments and higher rental rates as Americans chose to rent for extended periods. This trend experienced significant growth for approximately 15 years, reaching its peak in 2021 and 2022, according to Axios. Additionally, the rising housing prices provided another reason to anticipate sustained demand.   However, the market has since experienced high inflation, an uptick in supply relative to demand, and significant increases in other expenses, such as insurance premiums. As we navigate 2024, the market anticipates distress, especially for borrowers engaged in negative-leverage deals. The sharp rise in interest rates poses a looming challenge as approximately $351.8 billion in apartment building bank loans are slated to mature between 2023 and 2027, with the vast majority needing to be refinanced, per Trepp.   Read more: Private Equity Outlook 2024    Figure 1: Growth of Select US Mortgage Debt Categories  Source: Axios  According to the National Multifamily Housing Council (NMHC), rent growth, though positive, hit its lowest point in six quarters at 4.5% in 1Q23, significantly below its peak of 15%. Concurrently, the average vacancy rate increased to 4.9% during the quarter, marking its highest level in six years. Meanwhile, over 1 million apartment units were reported to be under construction in the US, with developers projected to complete approximately 400,000 units, which is likely to surpass current demand. NMHC’s most recent quarterly survey unveiled that the indexes for market tightness, sales volume, and equity financing all fell below the breakeven level.   Multifamily loan delinquencies are expected to double this year to hit $1.3 billion, per Fitch. Moody’s Analytics noted the drop in the payoff to 71.7% in September which has consistently been in the range of high 80s and 90s throughout 2023. A report by Trepp indicates that around $23.5 billion of apartment loans possess a debt service coverage of less than 1, signifying inadequate cash flow to meet mortgage obligations. Veritas notably defaulted last year upon the maturity of a $447.5 million multifamily commercial mortgage-backed loan.  While certain metropolitan areas that faced challenges during the pandemic are now displaying resilience, others that previously had robust demand are showing signs of weakness, per Trepp. Its analysis revealed notable disparities in the share of high-risk multifamily loans across various US regions. For instance, New York witnessed a decrease in the percentage of high-risk loans but displayed an uptick in the delinquency rates. Phoenix, once a thriving market during the pandemic, is encountering challenges with declining rents and an overall vacancy rate of 9.3%, higher than the national average of approximately 6%, indicating potential risks on the horizon for these loans.  Read more: Prognosis 2024: Unveiling Healthcare Trends and Strategies    Confronted with maturing loans where property values do not support a refinancing option, banks are left with few alternatives. They may opt to extend maturing loans, anticipating appreciation in property values, or they might demand that borrowers inject additional equity into the deal. Another option would be foreclosure on the property as a last resort. New York Community Bank recently announced a 70% reduction in its dividend to enhance capital strength and increase its loss reserves, anticipating heightened distress in its substantial multifamily portfolio. KKR Real Estate Finance Trust Inc. lowered its dividend to 25 cents a share, down by 42% due to losses in office and multifamily loans, per Bloomberg.   Figure 2: Commercial Real Estate Loans in Regional Banks  Source: Reuters  Read more: Savings Squeeze: A Looming Threat on the Economic Landscape     In conclusion, regional banks are navigating heightened risks associated with multifamily loans amid a challenging environment marked by high inflation, elevated debt costs, limited credit opportunities, and rising insurance and property taxes. The surge in rental growth and accessible debt in 2021 and 2022 spurred significant investment, but the landscape has shifted, leading to slowed growth, an uptick in loan delinquencies, and increased challenges in refinancing. This underscores the importance of enhanced monitoring and strategic decision-making in the current multifamily loan market.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose and merging content and context to overcome business challenges. With our brand promise of "Life's Possible," we consistently deliver enduring value and ensure the utmost client delight.     Partner of choice for lower middle market-focused Investment Banks and Private Equity firms, SG Analytics provides offshore analysts to support across the deal life cycle. Our complimentary access to a full back-office research ecosystem (database access, graphics team, sector & and domain experts, and technology-driven automation of tactical processes) positions our clients to win more deal mandates and execute these deals in the most efficient manner. 


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Unlocking the Power of Unstructured Data with AI

Unlocking the Power of Unstructured Data with AI

In the rapidly evolving digital era, unstructured data has become a critical player in digital transformation journeys. This data type encompasses a vast array of information and is growing at an exponential rate. Advanced AI technologies are enabling organizations to process, reason with, and extract significant insights from this data, unveiling a world of untapped business opportunities. Effectively managing and leveraging this data with AI-powered tools has become a necessity for businesses aiming to uncover hidden insights and create value.   Recent strides in data storage and AI innovation are helping to simplify key complexities of unstructured data management, enabling organizations to move from merely managing data to turning proprietary unstructured data into a competitive differentiator.   Organizations are leveraging this newfound ability to generate actionable, data-driven insights from their data and integrate measures to understand the dynamic world of unstructured data as well as its management challenges.  Read more: Big Data Analytics: Turning Data into Actionable Insights  Global data platforms present a comprehensive solution to address these challenges by providing seamless collaboration, efficient data-tiering, and advanced data services. By adopting a global data platform, organizations can unlock the full potential of their data, optimize costs, and drive innovation in the ever-evolving digital landscape.  The urgency has never been higher for organizations to leverage data and AI for competitive advantage. Leaders are still grappling with the unprecedented data challenges.  With data volumes continuing to grow and new formats of unstructured data growing annually, data silos and data complexity are multiplying further in applications. This prevents data from being used effectively. To make use of large volumes of unstructured data for analytics and AI, organizations are turning to data lakes for cost-effective storage, open formats, and flexibility. However, with data volumes growing, these traditional data lakes are constrained by performance, governance, and complexity.     To scale trusted data analytics and AI workloads, organizations are embracing an open data lakehouse approach that helps combine the performance and governance of data warehouses and the flexibility of data lakes. With this strategic collaboration, a new era of AI possibilities is set to unfold.    Read more: How can Business Boost Productivity with Generative AI?  Navigating the Unstructured Data Landscape with AI  Organizations are sitting on huge data storage, but their traditional storage systems are confined to storing file names without insight. This lack of context is the challenge many organizations often face to keep up with the unprecedentedly high volumes of unstructured data collected to retain for insights and analysis.   A traditional process would require hundreds of hours of human resources to search through every video clip manually to find that data. With AI, organizations can automatically tag, catalog, and organize the data—making it easily accessible and ultimately, usable in a new way.   Data enrichment is the DNA of the storage architecture. By infusing AI capabilities at the core of data storage, organizations can empower their unstructured data and utilize it to contribute to business insights and outcomes.   AI frameworks require massive amounts of data to learn. Today, many organizations are using readily available datasets to train their AI models. The AI systems help in exclusively shielding the data from the homogeneity of generic datasets. The data sets can be tailored and inherently aligned with the intricacies of the organizational operations. This level of customization further helps ensure that every piece of information extracted is relevant and essential for the organization to gain a critical competitive advantage. Organizations that can archive and retain all their unstructured data will experience a distinct advantage over those not integrating the required measures.  Read more: Top AI Tools Marketers Need to Consider in 2024 - A Complete Guide  The rise of AI and unstructured data, along with the value contained in that data, is shifting the way organizations think about their storage and infrastructure. An end-to-end strategy is critical to extracting value and navigating the entire life cycle of unstructured data - from creation to enrichment and analysis. This will further ensure that AI intelligence is embedded at every stage.   To initiate this journey toward implementing an AI-based data strategy, there are several measures organizations need to take to future-proof their organizations.   The process begins with a thorough evaluation of existing data assets, focusing on assessing their quality, accessibility, and relevance.   Clear goal setting aligned with specific business objective helps in establishing measurable key performance indicators (KPIs) which serves as a cornerstone for success.   Establishing an AI model evaluation process to standardize data collection, storage, and management processes with an emphasis on automation.   Simultaneously, the development of robust data governance policies will further equip organizations to address critical concerns surrounding privacy, data security, and compliance.   Today, the capabilities of AI are growing exponentially, and staying at the forefront of them is not negotiable for organizations. By effectively harnessing internal expertise and mitigating potential challenges, organizations can keep their proprietary data secure. With the ability to manage, enrich, and use unstructured data, they will be able to establish themselves as competitive differentiators while also setting fundamental criteria for success in the digital age.   Read more: The Next Productivity Frontier: Making Generative AI a Sustainable Tool  Conclusion   In today's data-driven world, organizations are effectively managing and utilizing their data to stay competitive. Unstructured data is of utmost precedence for modern business as it holds insights that can be used to transform business growth, operational efficiency, and customer experience. Once an overlooked aspect of data management, unstructured data is now becoming the cornerstone of the AI-driven business landscape.   Organizations are recognizing the intrinsic value of their unique data and leveraging AI to transform this data into actionable insights. The fusion of data and AI is presenting them with unprecedented opportunities for businesses, but it also brings forth complex challenges in data management and storage. However, to achieve the best yield, it is important for organizations to review their data analytics and structuring approaches. By integrating an AI-first and specialized approach for unstructured data analysis and advanced AI tools, organizations can simplify the processes, insights, extractions, and data flow.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable business insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose and merging content and context to overcome business challenges. With our Brand Promise of "Life's Possible," we consistently deliver enduring value, ensuring the utmost client delight.    A leading enterprise in Generative AI solutions, SG Analytics focuses on unlocking unparalleled efficiency, customer satisfaction, and innovation for the client with end-to-end AI solutions. Contact us today to harness the immense power of artificial intelligence and set new benchmarks in operational efficiency, customer satisfaction, and revenue generation.    About SG Analytics      SG Analytics (SGA) is a global data solutions firm that harnesses data with purpose across the data value chain - from origination, aggregation, management, modernization, and analytics to insights generation to create powerful business outcomes for its customers. Through its research and data analytics consulting services, SGA marries content with context to provide bespoke solutions to its customers, enabling them to improve efficiency, scale, and grow. The company has a presence in New York, London, Zurich, Seattle, Austin, San Francisco, Toronto, Pune, Bangalore, Hyderabad and Wroclaw. The firm serves customers across the banking, financial services and insurance (BFSI), technology, media and entertainment (M&E), and healthcare sectors, amongst others, including Fortune 500 companies.     Apart from being recognized by reputed firms such as Analytics India Magazine, Everest Group, and ISG, SG Analytics has been recently awarded as the top ESG consultancy of the year 2022 and Idea Awards 2023 by Entrepreneur India in the “Best Use of Data” category. 


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The Fed to Percolate to The Economy

How Long Does It Take for Rate Cuts by The Fed to Percolate to The Economy?

Implementing monetary policy is akin to planting seeds in a garden. It takes time for the seeds to germinate and grow, just as it takes time for the full effects of monetary policy to be felt in the economy.  There is much evidence that monetary changes have an effect only after a considerable lag and over a long duration and that the lag is rather variable. In order to understand how long it takes the monetary policy to percolate in the economy, we assessed the impact of policy on the economy through the Purchasing Managers Index (PMI) and Leading Economic Index (LEI) indexes in various events in the United States (U.S.). Here, the PMI index represents the prevailing direction of economic trends in manufacturing. LEI, an index published monthly by the Conference Board, is used to predict the direction of global economic movements in future months. The Conference Board is a research organization that publishes several widely tracked economic indicators.  Below is the impact of rate cycles on key economic indicators.   Rate Cuts Scenarios  During the 2007–08 housing market crash, the impact of Fed rate cuts was observed after eight months on the PMI index and after 19 months on the LEI index. The prolonged impact was attributed to the looming recession and the severe economic fallout from the housing market collapse. In contrast, amidst the flagging recovery and low inflation in 2002–03, Fed rate cuts took six months to reflect on the PMI and LEI indexes. Following the Dot-Com bust and the 9/11 incidents in 2001, the impact of Fed rate cuts in that year was more protracted. The PMI improved after six months, while the LEI index saw improvements only after 10 months, reflecting the significant economic and financial market upheaval during that period. In the mid-cycle adjustment of the 1990s, it took seven months for the Fed to stimulate the economy following a 300 basis points (bps) hike within a year.  Read more: Outlook 2024: Fastest Growing Careers in the US          Source: Federal Reserve Economic Data, SGA research  Source: Federal Reserve Economic Data, SGA research  Rate Hikes Scenarios  The impact of Fed rate hikes during 1994–95 was observed after nine months on the PMI and eight months on the LEI index, whilst the impact of Fed rate hikes during 1999–2000 (The Dot-Com boom) was evident after six months on the PMI and 11 on the LEI index. Exceptions were also noted in rate hike cycles such as 2015–18 and 2005–06, where the impact of rate hikes was witnessed in a remarkably shorter period.  Source: Federal Reserve Economic Data, SGA research  Source: Federal Reserve Economic Data, SGA research  Effect of Monetary Policy on the Economy  The long response time to reflect on the LEI and PMI indexes suggests that it takes time for the economy to fully absorb and adjust to the effects of monetary policy. On the other hand, we also observed that monetary policy shocks shift to the economy over very short lags, with economic activity and manufacturing orders displaying notably different dynamics. This was due to the prevailing macroeconomic factors. Additionally, the transparency of the Fed and the dynamics of financial markets have accelerated the transmission of these effects. Market participants anticipate policy changes well in advance, leading to economic effects before the actual adjustments in the policy rate are implemented.   Read more: Savings Squeeze: A Looming Threat on the Economic Landscape  What Lies Ahead for the US in the Current Scenario?  In the current scenario, the U.S. economy is still showing resilience despite the Fed’s rapid 525bps rate hikes since March 2022. However, the full consequences of these tight monetary policy measures are yet to unfold. Historical patterns suggest a lag of six to nine months for the economy to fully absorb such policy changes. It is important to note that the changes in interest rates affect the economy through various channels, including borrowing costs, consumer spending, business investment, and asset prices. The speed at which these transmission mechanisms operate can vary.   Some areas, such as bond yields, corporate earnings, and liquidity, are already feeling the impact of tight monetary policy. In contrast, other areas, such as the labor market, are still absorbing the effects. It seems that monetary tightening is more of an art than a science. Policymakers can make small adjustments to the economy to either accelerate or decelerate its pace, much like adjusting a thermostat to maintain a comfortable room temperature. That said, it is likely to take time for the full impact of interest-rate changes to pass through all three stages of the monetary transmission mechanism (first: asset prices, second: demand, last: inflation).   Some economists are comparing the current U.S. economic scenario with the 1970s, where central bankers (allegedly) reduced interest rates before the inflation battle was won. However, policymakers are now more cautious about premature easing, perhaps because of sticky inflation. Typically, there are two types of easing cycles: during recessions and as pre-emptive measures against adverse outcomes. Empirical research indicates that when central banks cut rates in response to economic weakness, the recovery tends to be prolonged. Conversely, when easing policies are implemented as ‘insurance’ against potential downturns, the economic rebound tends to occur more swiftly. This pattern was observed in 1995 and 1998 when it took about 7 months (more than two quarters) to stimulate economic growth. Unless there is a significant deterioration in the global economic outlook, it seems that the latter scenario is the more relevant framework for 2024. Read more: Shifting Strategies: Venture Capital’s Shift to Secondary Markets  In Conclusion  Based on the above research, even if the Fed initiates rate cuts starting in June, it will take six to nine months for the economy to recover from the effect of rapid hikes. Moreover, geopolitical developments such as ongoing Middle East tensions and upcoming elections are also likely to impact the pace of the economic rebound. Thus, the US economy should start recovering by the beginning of 2025.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose, merging content and context to overcome business challenges. With our brand promise of "Life's Possible," we consistently deliver enduring value and ensure the utmost client delight.  A market leader in Investment Research, SG Analytics assists in strengthening investment decisions by leveraging custom research support. Contact us today if you are in search of an investment research firm that offers tailored research support across a broad range of asset classes.      About SG Analytics       SG Analytics (SGA) is a global data solutions firm that harnesses data with purpose across the data value chain - from origination, aggregation, management, modernization, and analytics to insights generation to create powerful business outcomes for its customers. Through its research and data analytics consulting services, SGA marries content with context to provide bespoke solutions to its customers, enabling them to improve efficiency, scale, and grow. The company has a presence in New York, London, Zurich, Seattle, Austin, San Francisco, Toronto, Pune, Bangalore, Hyderabad and Wroclaw. The firm serves customers across the banking, financial services and insurance (BFSI), technology, media and entertainment (M&E), and healthcare sectors, amongst others, including Fortune 500 companies.    Apart from being recognized by reputed firms such as Analytics India Magazine, Everest Group, and ISG, SG Analytics has been recently awarded as the top ESG consultancy of the year 2022 and Idea Awards 2023 by Entrepreneur India in the “Best Use of Data” category. 


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Nvidia’s AI Dominance - How Long Will This Bull Run

Nvidia’s AI Dominance: How Long Will This Bull Run?

Nvidia, at the heart of the AI revolution, is almost synonymous with its progress. As of 21st February 2024, it is the world's fourth most valuable company, having solidified its monopoly in the AI hardware value chain. However, the prospect of this bull run being sustained over the long term appears thin, with growing competition and an evolving landscape.   Nvidia’s recently released earnings report for 4Q23 highlighted that its data center division, crucial for powering AI initiatives across numerous organizations, contributed significantly to its growth. The division’s revenue reached $18.4 billion—a remarkable 409% rise year-on-year.  Figure 1: Nvidia Specialized Market Revenue, Quarterly  Source: Statista  Read more: Private Equity Outlook 2024    Currently, the company is at the forefront of developing the H100 chip, a powerhouse that drives the majority of LLMs in operation. According to CB Insights, Nvidia captures approximately 95% of the GPU market for machine learning, boasting over 40,000 companies relying on its GPUs, including OpenAI, and a substantial share of AI projects by Microsoft, Meta, and Amazon. The company reported a remarkable 1,000-fold improvement in AI inference performance over the past decade and remains dedicated to enhancing its chips for increased efficiency and cost-effectiveness, ensuring a competitive edge in the market.  Besides maintaining competitiveness in the industry, Nvidia is actively broadening the ecosystem by enhancing current capabilities. As reported by Reuters, the company has injected $30 billion into a specialized unit aimed at assisting other companies in developing their custom AI chips. This strategic move is twofold: first, by encouraging companies to create their own AI chips, they can achieve resilience and self-sufficiency in their operations. Second, from Nvidia's perspective, this initiative allows them to assert influence by setting competitive terms while securing a percentage of the proceedings.  The crucial question looming, however, is whether the remarkable surge in the company's success is sustainable. The current frenzy around AI and the global shortage of advanced processors have elevated the value of Nvidia's products. However, this premium is more likely to diminish than endure. Startups such as SambaNova, Cerebras, and Groq have emerged as formidable challengers to Nvidia's dominance. Groq, for instance, employs language processing units that are highly specialized in AI inference, reducing reliance on GPUs. This specialization allows Groq to assert faster delivery of LLM output, showcasing a potential shift in the hardware value chain.    Read more: Prognosis 2024: Unveiling Healthcare Trends and Strategies    While AI is fueling the demand for Nvidia’s products, it is also contributing to expediting the chip manufacturing process. Software companies like Cadence and Synopsys, for instance, are leveraging AI to automate aspects of chip design and ease the process of switching manufacturers as alternatives emerge.   Furthermore, a significant threat to Nvidia lies in the concentration of sales to a limited number of customers. Amazon, Meta, Microsoft, and Google, Nvidia's largest customers, account for approximately 40% of its revenue. Going forward, the company's sales could face adverse effects if these customers decide to reduce their product purchases, opt not to integrate Nvidia's products into their ecosystems or modify their purchasing patterns in the future.   According to Bloomberg, Nvidia's sales of AI chips predominantly stem from the very companies involved in the chips race. Recently, Open AI CEO Sam Altman gained widespread attention by seeking up to $7 trillion for the development of silicon-chip manufacturing capacity. Concurrently, Microsoft has forged a strategic partnership with Intel to manufacture chips. Over time, as its customers become more self-sufficient, Nvidia's business model is likely to face challenges.  Figure 2: Nvidia GPU Shipments by Customer  Source: Omdia Research  Read more: Savings Squeeze: A Looming Threat on the Economic Landscape     Meanwhile, Intel and AMD, direct rivals of Nvidia, are striving to enhance their chip technology but still lag far behind Nvidia in terms of market valuation. Intel, once the forefront leader in microchips, now holds a market value of less than $0.2 trillion. However, the company has recently identified opportunities in the domestic market and is making efforts to transform itself into a contract manufacturer, competing with Taiwanese and Korean counterparts. While many US companies design chips, the majority depend on Taiwan Semiconductor Manufacturing Co. or Samsung to manufacture their cutting-edge chips, a dependence considered geopolitically precarious. In addition, Intel has forged a partnership with Microsoft in support of this endeavor.   Figure 3: Nvidia and Intel Market Value  Source: Axios  In conclusion, Nvidia has emerged as a prominent success story in the AI ecosystem, showcasing technological expertise, creating strategic partnerships, and maintaining a competitive edge. However, with the industry becoming more competitive and major players vying for a share of the AI chip market, Nvidia faces challenges to maintain its virtual monopoly. The sustainability of its success is questioned, considering the dynamic nature of the industry and the potential erosion of the premium on its products. In this evolving landscape, Nvidia’s future hinges not only on technological innovation but also on its ability to adapt to market dynamics and sustain customer relationships in the growing competition.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose and merging content and context to overcome business challenges. With our brand promise of "Life's Possible," we consistently deliver enduring value and ensure the utmost client delight.     Partner of choice for lower middle market-focused Investment Banks and Private Equity firms, SG Analytics, provides offshore analysts with support across the deal life cycle. Our complimentary access to a full back-office research ecosystem (database access, graphics team, sector & and domain experts, and technology-driven automation of tactical processes) positions our clients to win more deal mandates and execute these deals in the most efficient manner. 


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The Resurgence of Video Game Startups in 2024

Level Up: The Resurgence of Video Game Startups in 2024

 Disney recently acquired a $1.5 billion equity stake in Epic Games, marking its biggest investment yet in the gaming industry. With this investment, Disney is aiming to integrate its iconic characters and intellectual assets into the games and entertainment universe. This prominent example highlights the gaming industry's expanding potential as well as the market’s eagerness to participate in its growth.  In sync with the broader VC market, the gaming industry faced challenges over the past year, experiencing sluggish fundraising, mass layoffs, and closure of studios. However, there is a positive outlook for 2024, driven by a transforming ecosystem that has cultivated a favorable environment for growth. The use of AI and web3 in game development, as well as the integration of virtual and augmented reality (V/AR) into the games themselves, presents unbounded opportunities. As a consequence of these developments, investor interest in the gaming industry has been revived.  The past year experienced a readjustment from the 2021-22 period of mass tourist investors influx. Newzoo projects that the gaming market is poised to return to an organic growth trajectory, anticipating a 2.8% increase this year, reaching a total of $189.3 billion. Already, the gaming VC landscape exhibited improvement in 4Q23, with a total of 126 deals amounting to $1 billion, marking quarterly increases of 0.8% and 10.4%, respectively, per Pitchbook.  Figure 1: Gaming VC Deal Activity by Quarter  Source: Pitchbook  Read more: Venture Capital Outlook 2024    For the moment, mobile publishers constitute half of the industry and traditionally attract the most venture funding. However, they are currently grappling with challenges related to monetization and user acquisition, stemming from evolving dynamics within the app stores provided by Apple and Google. The gaming industry, taking note of the implications, is pivoting towards cross-platform games, especially those designed for consoles and PCs.   Cross-platform games are considered a lucrative space in the current environment due to their wider market reach and increased potential for revenue generation. According to VB Live, developing cross-platform compatibility can increase revenue by 20-40%. Live-service games in this category have become noteworthy, with third-party offerings leading the charts in terms of monthly active users and revenue across multiple platforms, according to a Newzoo report. The report highlights that the mobile games segment was anticipated to face a revenue decline of 1.4% in 2023, whereas sales for console and PC games were projected to grow by 1.7% and 5.3%, respectively. This strategic reorientation towards segments that offer more robust growth prospects makes the industry more appealing to investors.  Figure 2: Global Games Market Segmentation  Source: Newzoo  While the AI fervor in 2022 prompted many industries to showcase their AI capabilities, its potential impact on the video game sector wasn't immediately noticeable. However, companies are now beginning to introduce AI into the industry, facilitating cost savings through streamlined game development processes.   Read more: The Dragon's Dilemma: China's Path in a Shifting Global Landscape  AAA game development, for example, is known for its challenges, which are marked by escalating budgets, expansive scopes, and development timelines typically stretching beyond five years. Although revenues have generally surpassed escalating costs driven by innovative monetization strategies, the advent of AI is poised to enhance these established production models. A recent survey by Andreessen Horowitz involving 243 game studios regarding adopting AI tools disclosed that 87% are currently employing AI, and 99% have intentions to integrate it into their upcoming projects. Noteworthy tools include ChatGPT and Midjourney, alongside Leonardo.ai and Scenario, two generative AI systems tailored specifically for gaming applications. Additionally, 64% of the surveyed studios expressed plans to train or refine language models using their own data in future endeavors.  Web3 gaming, a decentralized process of developing immersive and interactive games, is also anticipated to experience substantial growth, with a projected CAGR of 18.7%, increasing from $23 billion in 2023 to $133 billion in 2033, as reported by Future Market Insights. Game7 notes a 40% growth in blockchains, specifically targeting the gaming sector in 2023, with the announcement of over 81 new blockchain networks. Distribution has historically posed challenges for the industry, relying on direct channels or web3 native platforms. Notably, platforms like the Epic Games store have demonstrated increasing support, progressing from listing only two games in June 2022 to featuring 69 games by October 2023. This growth is attributed to new monetization opportunities, decentralized governance, enhanced interoperability, and improved user experiences offered by Web3 gaming.  V/AR also represents a burgeoning field set to propel the gaming industry forward. According to IMarc, the global AR gaming market is expected to witness substantial growth, projecting an increase from $11 billion in 2023 to $102 billion in 2032, with a noteworthy CAGR of 27.2%. Similarly, the global VR in the gaming market is poised to experience a CAGR of 22.7% from 2023 to 2030, per Grand View Research. The launch of much-anticipated standalone headsets like Apple’s Vision Pro and Meta’s Quest Pro is expected to mainstream the VR sector, contributing to an expanding VR ecosystem and robust commercial growth.  Read more: Shifting Strategies: Venture Capital’s Shift to Secondary Markets     In conclusion, despite challenges, the video game industry is undergoing a dynamic resurgence in 2024 driven by a transformative ecosystem, unbounded opportunities represented by AI, web3, V/AR, and renewed investor interest. The gaming VC landscape is showing improvement, with a shift towards organic growth. There is a strategic reorientation as developers pivot towards cross-platform games to optimize returns as market conditions evolve. The integration of AI, the increasing acceptance of web3 gaming, and the rise of V/AR are further shaping the industry's evolution.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose and merging content and context to overcome business challenges. With our brand promise of "Life's Possible," we consistently deliver enduring value and ensure the utmost client delight.     Partner of choice for lower middle market-focused Investment Banks and Private Equity firms, SG Analytics provides offshore analysts to support across the deal life cycle. Our complimentary access to a full back-office research ecosystem (database access, graphics team, sector & and domain experts, and technology-driven automation of tactical processes) positions our clients to win more deal mandates and execute these deals in the most efficient manner. 


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Private Equity Outlook

Private Equity Outlook 2024

In 2023, global macroeconomic and geopolitical pressures significantly affected private equity (PE) activity. The implementation of a more stringent monetary policy to combat high inflation and the subsequent rise in interest rates led to a contraction of PE deal value by 54.7% and deal count by 34% during 3Q23, compared to its peak in 4Q21, per Pitchbook. Additionally, the year witnessed a fundraising slowdown, with the total fund count declining by 51% from 779 in 2022 to 381 in 2023, as reported by Pitchbook. While this decline is seemingly precipitous, it reflects the market’s recalibration to its pre-pandemic baseline following a period of heightened activity. Despite the unprecedented levels of dry powder – $2.59 trillion in 1H23, according to S&P Global – investors have remained cautious, awaiting reductions in asset valuations to reflect cooler demand and tighter financing. Conversely, sellers have been extending holding periods to maximize their exit values.  Figure 1: US PE Deal Activity  Source: Pitchbook  However, a closer look at the performance of last year’s macroeconomic indicators paints a more optimistic picture. Although muted in comparison to the post-pandemic surge, the US economy displayed robust growth. Core inflation has fallen sharply, with the annual rise in the Consumer Price Index falling from a four-decade high of 9.06% in June 2022 to 3.4% in its December reading. Real Gross Domestic Product registered a noteworthy annual growth rate of 4.9% in 3Q23, marking the fastest quarterly expansion in nearly two years. As of December 2023, the unemployment rate stood at 3.7%, consistently remaining below the 4% threshold for two consecutive years, with the annual wage increase at 4.1%. While the markets navigate the delicate balance between the hope for a soft economic landing and concerns about escalating inflation, PE activity in 2024 is poised to undergo adjustments due to this structural shift toward slower growth and increased volatility.  Read more: Savings Squeeze: A Looming Threat on the Economic Landscape  Investment Climate Will Remain Unchanged in the Medium Term  The current investment climate – characterized by elevated inflation, costly credit, and a deceleration in deal flows – is expected to persist, at least in the medium term. Following the recent Federal Open Market Committee meeting, the committee opted to maintain benchmark interest rates at their current levels for the future but signaled three cuts in 2024. Optimizing portfolio outcomes amid increased volatility and dispersion will necessitate an active and adaptive approach. According to Blackrock’s hypothetical return data (see Fig. 2), adopting a more dynamic investment strategy is projected to outperform a traditional buy-and-hold approach.  As market participants adjust to this new reality, more distinctive and sustainable investment strategies are anticipated to come to the forefront. Given the challenging credit environment, even larger firms are encountering difficulties in financing large-scale acquisitions at feasible rates. A study published in Finance Research Letters indicates that non-mega deals tend to exhibit better short-term performance. In the current volatile climate, smaller deals continue to present opportunities for investors to capitalize. Another strategy expected to gain popularity involves acquiring minority stakes in target companies. This approach grants investors access to superior risk-adjusted return opportunities, including liquidation preferences, earn-outs, and seller notes. Additionally, it provides entry to robust and scaled companies with well-established management teams, all while facing reduced buy-side competition.  Read more: Prognosis 2024: Unveiling Healthcare Trends and Strategies     Figure 2: Hypothetical Impact of Rebalancing on US Equity Returns  Source: Blackrock  Private Credit Investment Strategies Will Take the Limelight  In recent months, the credit market witnessed a retreat from traditional bank lenders due to rising interest rates, the fallout from the US regional bank failures, the resulting tightened standards for lending, and a decline in deposits. Against this backdrop, PE funds are shifting their focus toward private credit as an alternative avenue. According to a Mergermarket and Dechert LLP report, 78% of the PE managers surveyed indicated that their funds utilize private credit for acquisition financing at the portfolio level. Additionally, 73% of those whose firms do not currently have a private credit investment strategy are contemplating adding one to their offerings. With traditional lenders stepping back, surging demand for private credit, and opportunities for portfolio diversification and risk mitigation abounding, the market is witnessing a rush of PE managers. Apollo’s private credit unit, for instance, now manages over $400 billion, surpassing the $100 billion in assets under management in its buyout division, historically the cornerstone of the group’s business. Blackstone recently merged its credit and insurance arms, which together manage $295 billion, i.e., more than double the $137 billion in its PE business. The firm aims to achieve a growth target of $1 trillion in the next decade.  Read more: Shifting Strategies: Venture Capital’s Shift to Secondary Markets  Investment and Integration of Artificial Intelligence (AI) will Emerge as the Key to Growth  The potential of AI in 2024 presents a dual opportunity. On the one hand, investments in AI technology are expected to advance exponentially as innovation snowballs. This expanding investment opportunity is not only restricted to application software and technology but across the ecosystem to semiconductors, hardware, cloud infrastructure, foundation models, etc. According to S&P Global, PE and venture capital firms worldwide had announced $10.34 billion of investments across 342 transactions in the AI and machine learning sector in just the first half of 2023. With the global AI market poised to grow from $150.2 billion in 2023 to $1345.2 billion in 2030 at a CAGR of 36.8%, the momentum in AI investments is expected to persist. On the other hand, the integration of AI and generative AI technology into business operations is expected to emerge as a growth driver. A survey conducted by Ernst and Young revealed that seven out of ten PE managers recognize the imperative of adopting AI to stay competitive. The application of AI may expand from traditional functions such as due diligence, LP requests, and reporting to expediting key business levers like cost reduction, top-line transformation, and revenue growth. For instance, Blackrock utilized generative AI to develop an efficient co-pilot tool for its risk management systems, Aladdin and eFront.  Figure 3: Investment Opportunities Moving Up the AI Technology Stack  Source: Blackrock  Capital Will be Channeled Toward Climate Infrastructure  The bipartisan Infrastructure Investment and Jobs Act, along with the Inflation Reduction Act, has presented PE firms with substantial incentives to focus on investing in infrastructure, particularly in climate infrastructure. Despite an overall 12% decrease in PE fundraising in 2022, fundraising for climate funds nearly tripled, per BCG. This upward trajectory is anticipated to gain further momentum in 2024, given that North America will need an additional $6 trillion in capital by 2030 to stay on course to achieve net-zero emissions by 2050. The confluence of regulatory tailwinds and the surging demand for climate technology, driven by an increasing number of businesses adopting net-zero goals, positions investments in climate infrastructure at the forefront of industry trends.  Read more: The Dragon's Dilemma: China's Path in a Shifting Global Landscape  Exit Markets to Return to Normalcy  In 2023, liquidity via traditional routes faced challenges, slowing the cadence of the industry’s natural fundraising cycle. The initial public offering (IPO) market was notably silent for the majority of 2022 and 2023. While Cava, a Mediterranean restaurant chain, debuted on the New York Stock Exchange in the month of June, its shares currently trade approximately 30% lower than their peak in late July. Similarly, Arms and Instacart, two highly anticipated offerings, also experienced declines of more than one-fifth from their respective highs. Merger and acquisition activity has also been muted, primarily due to the high costs associated with debt financing for buyout executions. The sluggish pace of exits is anticipated to persist into 2024 but is poised for improvement as macroeconomic conditions stabilize. According to a BDO survey involving fund managers and CFOs of portfolio companies, PE exit activities are expected to return to normalcy by 3Q24. On the one hand, pressure on buyout funds to return capital to Limited Partners before expiration dates is making sellers more willing to entertain lower valuations. Pitchbook highlights that if exits continue at their current pace, 2017 vintage funds are on track to reach maturity, with 20–26% of their invested capital tied up in assets instead of being returned to investors, heightening the urgency to initiate sales. On the other hand, with dry powder levels reaching unprecedented highs, PE funds are under pressure to deploy capital, making them more inclined to accept higher prices.  Figure 4: Survey Results for Optimal IPO Timeframe in 2024  Source: BDO  Figure 5: Survey Results for M&A Activity Areas in 2024  Source: BDO  Although PE activity in 2023 experienced a significant slowdown, macroeconomic conditions within the US saw robust growth. Looking forward, PE activity in 2024 is forecasted to witness an adjustment to the current investment climate, which will be marked by muted growth and greater volatility and is expected to continue, at least in the medium term. PE managers are poised to embrace innovative and sustainable strategies, strategically integrating private credit approaches. Substantial investments are forecasted to be directed toward climate infrastructure and AI technologies. Furthermore, exit markets are projected to return to a state of normalcy by the third quarter as macroeconomic pressures gradually subside.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose and merging content and context to overcome business challenges. With our Brand Promise of "Life's Possible," we consistently deliver enduring value, ensuring the utmost client delight.      Partner of choice for lower middle market-focused Investment Banks and Private Equity firms, SG Analytics provides offshore analysts to support across the deal life cycle. Our complimentary access to a full back-office research ecosystem (database access, graphics team, sector & and domain experts, and technology-driven automation of tactical processes) positions our clients to win more deal mandates and execute these deals in the most efficient manner. 


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Fastest Growing Careers in the US

Outlook 2024: Fastest Growing Careers in the US

The current job market is in a turbulent space, but there are several career paths that are projecting strong growth trends through 2024 and beyond. In response to fluctuating job markets, jobseekers are prioritizing high-growth career paths and upskilling to maintain a competitive edge. Some of the fastest-growing jobs in 2024 are set to offer stability and long-term potential.   Overview of Current Careers Market Trends   As we steer into 2024, businesses are focusing on hiring talent ranging from DevOps, digital transformation, security and privacy, and development to AI, automation, data integration, and data analytics.  The most sought-after careers have evolved due to elements like new technologies, consumer demand, and economic trends. It could range from caregivers of various kinds to data consulting analysts and other creatives.  The recruiting demand across the industry remains strong, and job gains are outpacing losses across sectors. There is also an increased focus on retention in the new year, with nearly 64% of tech workers planning to look for a new job in the coming year.   Fastest Growing Careers in the US in 2024  The growth and expansion of the fastest-growing job categories can be distinguished by a combination of growing demand for people to develop new technologies and those capable of undertaking the job. From cloud engineers to developers, the demand for the best talent is set to grow in 2024. Let's explore the top growing careers for 2024.  Read more: 10 Most Sustainable Cities in the USA: Sustainable Outlook 2023  Top Job Profiles in the Technology Sector  Systems Security Manager    Systems security managers are tasked to ensure that an organization's networks, data, and systems are safe from cybersecurity threats. This helps ensure that there is a security strategy in place and that it stays up to date on compliance and policies.   Experience to look for:   Team leadership to oversee a team of security professionals   Knowledge of compliance regulations and best practices   Expert-level knowledge of cybersecurity principles as well as data threats   Understanding of risk management and mitigation practices      Network Architect    Network or cloud architects help in overseeing the design, implementation, and maintenance of cloud infrastructure in an enterprise, with a focus on designing and developing secure solutions to suit business insights.   Skills to look for:   Strong communication and problem-solving aptitude   Experience with network engineering and cloud computing  Knowledge of network design and implementation, automation, and best practices around encryption, security compliance, and risk management   Big Data Engineer    Big data engineers are responsible for managing, designing, and maintaining the tools required to analyze and process large data sets. It is a critical role for maintaining data across the enterprise, with a focus on ensuring data tools are scalable and secure across the organization.     Skills to look for:   Experience with multi-cloud computing, data visualization, machine learning, and AI  Knowledge of programming languages including Python, Ruby, Apache Spark   An in-depth understanding of automation and enterprise architecture   ERP Integration Manager    An ERP integration manager is responsible for managing the integration of software systems and applications in an organization. They help in maintaining the flow of data and ensuring interoperability across the organization.   Experience to look for:   Project management and problem-solving skills   Strong technical knowledge of databases and integration tools  Experience with vendors, third-party providers, and cross-functional teams for successful integrations     Read more: 10 Fastest Growing Cities in the United States: 2024 Outlook    Data Scientist   Data scientists are analytical data experts who integrate data science to uncover insights from large sets of structured and unstructured data. They help shape business needs and goals. Through 2030, the demand for data scientists is predicted to grow 3x faster. This increased demand is in tune with the growing amount of data available to businesses. For this reason, executives are placing an enhanced focus on the recruitment of data professionals.    Skills to look for:   Knowledge of programming languages like Python or R for data manipulation   Experience with data visualization and statistical analysis   Understanding of machine learning, database, and SQL   Strong problem-solving skills and strong industry knowledge  Applications Architect   Applications architects oversee the design, development, and implementation of software applications. They help identify requirements for business needs and build applications that support organizational goals.     Skills and experience to look for:   Experience with networking and application development   Knowledge of coding languages like Java, HTML, and CSS   Skills in database management, APIs, Scrum, PHP, GIT, and more   IT Director    In a senior leadership position, IT directors are responsible for overseeing an organization’s IT operations and ensuring that IT goals align with business goals. They are responsible for keeping the team on track and helping them solve technological needs.  Skills to look for:   Strong leadership skills and technical knowledge   Communication and problem-solving skills   Knowledge of financial management   Understanding of compliance and risk management   Data Security Analyst   Today, every organization needs information security analysts — especially across computer systems design and related services. Data security analysts are tasked with managing the security of the organization’s data, assets, and information systems, along with protecting the organization from potential breaches, hacks, and threats. Information security analysts protect organizations' computer systems and data from cyberattacks. They monitor computer networks for possible breaches and respond to cyberattacks.    Skills to look for:   Knowledge of security tools and technologies, antivirus software, and vulnerability scanners   Experience with incident response, digital forensics, and risk assessment   Understanding of security compliance and regulations  Read more: Fastest Growing Industries in the United States (US) for 2024  Top Job Profiles in the Other Sector   Financial Managers   Stepping into the high-stakes world of money management, financial managers are shaping the future of finance. The employment of financial managers is expected to grow by a robust 17% between 2022 and 2032. For companies to drive their financial goals, these professionals play a critical role in planning, directing, and coordinating investment activities. They are responsible for influencing company operations as well as impactful business decisions. This fast-growing job profile offers a chance to earn a living as well as presents opportunities to contribute meaningfully to the changing financial landscape and help shape the future. Medical and Health Services Managers   A popular career option in the healthcare industry, medical and health services managers are considered the sturdy backbone that reinforces healthcare institutions. The job profile is expected to witness an impressive growth rate of 32% from 2020 to 2030. Tasked with the organization and management of health services across settings like hospitals, clinics, or long-term care facilities, they help optimize healthcare delivery and address regulatory requirements. These professionals are leading the healthcare transformation through effective operations management and patient care.  Registered Nurses  The healthcare sector is steadily evolving, and so is the role of nurses. With a projected growth rate of 9% from 2022 to 2032, the demand for compassionate, skilled nurses is set to grow. Driven by factors like the healthcare needs of the population, along with ongoing advances in medical technology and an emphasis on preventive care, the healthcare industry is ripe with opportunities. More than just a career, becoming a registered nurse presents the unique opportunity to make positive impacts in hospitals, clinics, and nursing homes, thereby contributing in a truly meaningful way to the health and well-being of countless individuals.  Read more: How to Build a Go-To-Market (GTM) Strategy: A Comprehensive Guide  Conclusion  Examining the recent past for patterns will help us gain a deeper understanding of the best way to guide the unknown landscape of jobs. From chief growth officer to physical therapist and vice president, the new job market in the US is witnessing a rise in diversity and inclusion.  While many factors are set to impact job profiles, including competition, corporate culture, and budgets, there are a few factors that organizations need to make sure of. Considering the high job demand for 2024, the skills will play a significant role in staying competitive in the marketplace.  The job market fluctuates from one year to the next. Further changes in technology, as well as the way we live, are creating new jobs all the time. And the fastest-growing jobs in the US are undergoing a whirlwind of transition. While some of these jobs are new and barely existed a few years ago, others are making a comeback.  SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose, merging content and context to overcome business challenges. With our Brand Promise of "Life's Possible," we consistently deliver enduring value, ensuring the utmost client delight.   A leader in Market research services, SG Analytics enables organizations to achieve actionable insights into products, technology, customers, competition, and the marketplace to make insight-driven decisions. Contact us today if you are an enterprise looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance. 


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