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Where Are Businesses Closing in the US?

Source: Yelp

The number of total business closures in the United States dropped in July 2020 — but the figure remains high, with more than 132,500 closures so far this year. Of that amount, 15,742 businesses permanently closed since mid-June. Data from Yelp shows that the restaurant industry had the highest number of closures in July, surpassing the retail industry. 

Most of these closures are occurring in large cities — Los Angeles and New York City had the largest amounts of business closures. Similarly, large U.S. states such as California (29,351 closed businesses), Texas (11,118 closed businesses) and New York (8,731 closed businesses) all experienced a large number of closures since the start of the pandemic. Many of these cities and states have been major hot spots during the pandemic.

As businesses start to reopen, and consumers test their comfort levels, recreational activity is expected to grow and help bounce back struggling industries. However, cases continue to rise in certain parts of the U.S., causing consumer interest and business closures to continue to move at an unpredictable pace.

More People and Assets Are Vulnerable to Sea Level Rise 

Climate change has already caused sea levels to rise by 0.2 meters since 1900, according to the Intergovernmental Panel on Climate Change’s latest report. Temperatures will likely increase between 1.8 and 2.4 degrees Celsius by 2100 — not including higher levels of warming, according to an analysis of the outcomes of COP26

Sea levels may further rise by up to 1 meter by the end of the century, depending on future emissions. Sea level rise is leading to coastal erosion and flooding, contamination of agricultural land and aquifers with saltwater and damage to ecosystems

As the concentration of population and assets along coastlines continues to increase, sea level rise will disrupt economic activities and cause extensive damage to infrastructure. Without significant investments in climate change mitigation and adaptation, by the end of the century, the global population and assets threatened by coastal flooding will increase by 52% and 48%, respectively.

Are Pandemic-Driven Salary Freezes Beginning to Thaw?

In 2020, as the COVID-19 pandemic spread, many companies instituted cost-cutting measures like salary freezes to curb potential negative financial impacts. But according to new data from Mercer, the general trend indicates that the percentage of freezes will decline in 2021.

This year, the total percentage of Western European companies freezing salaries has declined by 6%, with large salary freeze decreases in high tech (18% less in 2021) and manufacturing (15% less in 2021). In the life sciences sector — which includes pharmaceuticals, one of the key industries leading “return to normalcy” efforts throughout the pandemic — the proportion of companies instituting or continuing salary freezes is projected to dip even below 2020’s already-low rate. 

Of course, companies worldwide are still adjusting as new variants, labor trends and market evolutions continue to foster an environment of uncertainty. For example, industries like consumer goods and energy — which are dealing with the dual challenge of the pandemic and climate change or inflation — are still instituting freezes at higher levels.

U.S. Household Consumption Sees Dip in 2020, Still Outpaces Europe

The United States leads the world in consumption per capita, according to a recent article by Bloomberg opinion columnist Allison Schrager. An average household consumed $43,500 in goods in 2020, accounting for 67% of the GDP. The number has grown 43% since 1990.

Countries in Europe pale in comparison. Germany, for instance, had an average household consumption of $21,500 in 2020, accounting for 50% of its GDP. For Europe as a whole, household consumption per capita grew just 35% since 1990.

The rising trend in U.S. consumption, per the author, reflects the changing lifestyle that revolves around spending. Forty-three percent of American households own three T.V.’s, for instance, while clothing purchases have increased 500% since 1980. It also is a result of having more space to put things — the average U.S. home was 2,000 sq. ft. in 2015, compared to 1,700 sq. ft. in 1980.

Shifts in Precipitation Patterns Threaten Health and Food Security

Temperatures will rise between 1.8 and 2.4 degrees Celsius by 2100, according to a Climate Ambition Tracker analysis of the decarbonization commitments made by countries at the 2021 COP26, which does not rule out higher levels of warming. 

In its latest report, the Intergovernmental Panel on Climate Change highlights how climate change is shifting global precipitation patterns: On average, wet regions are expected to become wetter and dry regions drier. 

Extreme rainfall events are becoming more common, and flood risk is increasing. Climate change is also reducing water availability in many regions, exacerbating drought, wildfire and health risks. According to the World Health Organization, by as soon as 2025 half of the world’s population will be living in areas impacted by water scarcity. Changes in rainfall and rising temperatures will also compromise food security by reducing crop yields and livestock productivity.

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