Kearney, Inc.

https://www.kearney.com/

Kearney, Inc. is a global management consulting firm headquartered in Chicago, Illinois, with origins tracing back to 1926. The firm's core business is to serve as trusted advisors to the world's leading organizations, helping clients achieve immediate impact and sustained advantage on their most critical issues. Kearney aims to drive high-impact strategic transformations by leveraging technology and addressing complex challenges efficiently.

Kearney offers a wide array of consulting services, including strategy development, mergers and acquisitions, supply chain management, digital transformation, operations, procurement, analytics, innovation, marketing, sales, and sustainability. The firm is particularly renowned for its deep expertise in operations, procurement, and strategic sourcing. Kearney serves a diverse range of market segments, including aerospace and defense, automotive, chemicals, communications, media and technology, consumer products and retail, financial institutions, oil and gas, healthcare, private equity, transportation, and the public sector.

Operating as a privately held, partner-owned firm, Kearney became independent in 2006 following a management buyout from Electronic Data Systems (EDS). In January 2020, the firm rebranded from A.T. Kearney to simply Kearney. Led by Chairman and Managing Partner Alex Liu, Kearney has expanded its capabilities through strategic acquisitions, including Cervello (business analytics) in 2019, Optano (supply chain planning software) in 2022, and Project Partners (SAP transformation) in January 2025. With over 60 offices in more than 40 countries and 5,300+ employees, Kearney reported an annual revenue of approximately $1.6 billion in 2022. The firm's Global Business Policy Council is recognized as a leading private-sector think tank. Recent insights from Kearney include analyses on AI reshaping innovation and product discovery (March 2026) and an executive outlook for 2026 (February 2026).

Latest updates

US Manufacturing Imports Surge Despite Tariffs, Reshoring Efforts Fail to Gain Traction

Event summary

  • Kearney's 2026 Reshoring Index improved slightly to -91 from -115, but remains in negative territory.
  • US manufacturing imports rose by 4.6% in 2025, hitting a four-year high.
  • China's share of US manufacturing imports fell below 10%, losing $135 billion due to tariffs, while other Asian LCCRs gained $193 billion.
  • US manufacturing capacity only grew by 1.5% despite a tripling of investment over the past four years.

The big picture

Despite significant investment and policy interventions, the US remains heavily reliant on imports, particularly in electronics and apparel. The shift of manufacturing from China to other Asian LCCRs highlights the persistent cost advantages in the region and the challenges of attracting manufacturing back to the US. This underscores a broader trend of complex geopolitical factors influencing global supply chains and the limitations of tariffs as a standalone reshoring tool.

What we're watching

Cost Dynamics
The continued cost advantage of Asian LCCRs, even with tariffs, will likely continue to draw manufacturing activity away from the US, hindering reshoring efforts.
Investment Confidence
Weakening investment confidence and uncertainty surrounding USMCA could significantly impact the pace of nearshoring to Mexico, preventing a sustained compounding growth trend.
Policy Impact
The effectiveness of future trade policies and tariffs will be crucial in determining whether the US can shift its reliance on Asian imports and bolster domestic manufacturing.

Beverage Demand Polarizes as Health, Value, and Alcohol Moderation Reshape Market

Event summary

  • Kearney released its 2026 Beverage Outlook on April 15, 2026.
  • The report highlights a divergence in consumer behavior: simultaneous trading down for value and trading up for premium, health-focused experiences.
  • Health and functional benefits are now baseline expectations across beverage categories, not differentiators.
  • The report identifies a shift away from alcohol as a default choice, accelerating demand for low- and no-alcohol alternatives.
  • Consumers are exhibiting omnichannel behavior, impacting beverage discovery, purchase, and consumption patterns.

The big picture

Kearney's report underscores a fundamental shift in the beverage industry, driven by economic pressures, evolving health consciousness, and changing social norms. This polarization of consumer demand—simultaneously seeking value and premium experiences—is forcing companies to rethink their entire business models. The rise of low- and no-alcohol alternatives represents a significant challenge to established players and opens opportunities for new entrants.

What we're watching

Portfolio Strategy
How beverage companies will balance legacy portfolios with emerging consumer preferences for both value and premium offerings remains a key challenge, potentially leading to divestitures or restructuring.
Channel Evolution
The continued fragmentation of distribution channels will force beverage brands to optimize their route-to-market strategies, potentially favoring agile, digitally-native competitors.
Innovation Pace
The speed at which beverage companies can innovate and adapt to shifting consumer expectations around health, function, and alcohol alternatives will determine their long-term competitive advantage.

Investor Confidence Shifts to Asia as Geopolitical Tensions Mount

Event summary

  • Kearney's 2026 FDI Confidence Index reveals Asia now holds the largest share of ranked markets, marking a shift from previous years.
  • 88% of surveyed executives plan to increase foreign direct investment over the next three years, despite ongoing geopolitical uncertainty.
  • Technological and innovation capabilities have surpassed traditional factors as the primary driver of investment decisions.
  • Industrial policy is now considered extremely or very important by 84% of investors, with 57% believing it positively impacts business performance.
  • The United States remains the top FDI destination for the 14th consecutive year, but investor optimism has softened by 17 points.

The big picture

Kearney's FDI Confidence Index highlights a significant recalibration in investor behavior, driven by a confluence of geopolitical tensions, the growing influence of industrial policy, and the paramount importance of technological innovation. While overall FDI commitment remains strong, investors are demonstrating increased selectivity and a willingness to diversify beyond established markets. This shift underscores a broader trend of economic power redistribution and the increasing complexity of navigating the global investment landscape.

What we're watching

Policy Divergence
The interplay between national industrial policies will likely create friction and complexity for multinational corporations, requiring sophisticated navigation strategies.
Regional Dynamics
The continued rise of Asian markets, particularly Japan, China, and Singapore, suggests a potential reshaping of global investment flows away from traditional hubs.
Risk Assessment
How the escalation of conflict in the Middle East will impact FDI decisions and supply chain resilience remains a critical factor to monitor.

Kearney, Beroe Partner to Reinvent Procurement with Agentic AI

Event summary

  • Kearney and Beroe have formed a strategic partnership focused on developing agentic AI solutions for procurement.
  • The collaboration follows a year of co-innovation involving Kearney, Beroe, and 13 leading global procurement organizations.
  • The partnership aims to move beyond traditional digitalization to fundamentally rethink procurement operations.
  • Beroe CEO Vel Dhinagaravel emphasizes the need for procurement to move beyond incremental improvements to enable previously impossible decisions.
  • Kearney's Suketu Gandhi highlights the need for procurement teams to quickly respond to market volatility using agentic AI.

The big picture

The partnership signals a growing recognition within the procurement sector that traditional digitalization efforts are insufficient to address the increasing speed and complexity of global markets. Agentic AI represents a significant shift towards autonomous decision-making and real-time responsiveness, potentially disrupting established procurement workflows and creating a competitive advantage for early adopters. This collaboration highlights the increasing convergence of management consulting and AI-powered technology solutions.

What we're watching

Implementation Risk
The success of this partnership hinges on the ability of Kearney and Beroe to integrate their respective expertise and technologies effectively, a complex undertaking given the scale of the ambition.
Adoption Rate
The pace at which procurement organizations adopt agentic AI solutions will determine the partnership's overall impact and revenue generation, as many may be resistant to fundamental operational changes.
Competitive Response
Other procurement technology providers will likely respond to this partnership, potentially accelerating the development of competing agentic AI solutions and intensifying market competition.

Luxury Brands Face Relevance Test as Top Clients Drive Growth

Event summary

  • Kearney's 2026 Global Luxury Industry Outlook projects 2-4% growth for the luxury sector in 2026.
  • The top 2% of luxury clients now account for nearly 50% of total spending.
  • Luxury houses are experiencing a surge in creative director changes, with three times the turnover seen in previous years.
  • Kearney's consumer research identifies three distinct luxury consumer profiles: aspirational, selective splurgers, and traditionalists.
  • AI is rapidly integrating into luxury operations, shifting competitive advantage towards brands that leverage it effectively.

The big picture

The luxury sector is transitioning from a period of rapid expansion to a phase of normalization, driven by shifting consumer behavior and economic volatility. This shift necessitates a focus on earning relevance through creativity and value, rather than relying on scale or price increases. The concentration of spending among a smaller group of high-net-worth individuals highlights the importance of catering to their evolving preferences and experiences.

What we're watching

Client Concentration
The continued reliance on a shrinking, high-end client base creates vulnerability; a shift in their preferences or economic conditions could disproportionately impact growth.
AI Integration
The ability of luxury brands to effectively integrate AI into core operations while maintaining brand identity and human creativity will be a key differentiator moving forward.
Value Perception
Sustained price increases will require luxury brands to demonstrably enhance perceived value, as aspirational consumers become increasingly price-sensitive.

Kearney Index Highlights Persistent Gender Equity Gap in Women's Health Investment

Event summary

  • Kearney, UNFPA, and the HBA launched the '[w]Health Healthcare and Life Sciences Index' to track gender-responsive practices across healthcare value chains.
  • The Index assesses organizations across six levers: public health, medical education, R&D, care delivery, investment, and data.
  • Consumer health leads in maturity (55%), while investment lags significantly (30%), with less than 25% of funds applying a gender-lens strategy.
  • The Index, initially launched at Davos in 2024, analyzes data from hundreds of organizations across North America, Europe, and Asia Pacific.

The big picture

The launch of the [w]Health Index underscores the growing recognition of gender inequities within the healthcare sector and the increasing pressure on organizations to address them. While consumer health is leading the charge, the significant gap in investment maturity suggests a systemic issue requiring broader industry commitment and potentially, regulatory intervention. The Index's success hinges on its ability to translate awareness into tangible action and drive measurable progress across the value chain.

What we're watching

Investment Strategy
Whether the Index will spur a meaningful shift in investment practices, particularly within the healthcare sector, remains to be seen, given the current low adoption of gender-lens strategies.
Regulatory Scrutiny
Increased public awareness and the Index's transparency could draw regulatory scrutiny towards companies lagging in gender equity, potentially impacting investment flows and valuations.
Data Integration
The Index's reliance on self-reported data raises questions about the accuracy and comparability of assessments; improved data standardization and verification will be crucial for the Index's long-term credibility.

Chemicals M&A Rebound Driven by Mega-Deals, Masks Underlying Weakness

Event summary

  • Global chemicals M&A activity increased 18% year-over-year in 2025.
  • Four mega-deals accounted for 40% of total global M&A value.
  • Non-mega-deal activity only increased marginally, by 4%.
  • 76% of executives cite tariffs as a significant headwind impacting pricing, mix, and cost strategies.
  • M&A activity in North America rose 9% to $51.5 billion, while Europe increased 14% to $38.8 billion.

The big picture

The rebound in chemicals M&A isn't a sign of broad industry optimism, but rather a concentrated effort to reshape portfolios and address structural challenges. The dominance of mega-deals highlights a desire for scale and efficiency, while the marginal growth in smaller deals suggests underlying weakness. This shift away from multiple expansion and towards operational upside indicates a more cautious and demanding investment environment.

What we're watching

Execution Risk
The focus on operational improvements post-acquisition will be critical; failure to deliver on these changes could erode any premium paid.
Regional Dynamics
The divergence in M&A activity between North America, Europe, and Asia suggests region-specific strategies will be key to success.
Capital Flows
The increased participation of Middle Eastern capital signals a potential shift in investment priorities and could lead to further consolidation.

Supply Chain Costs to Outpace Inflation, Kearney Navigator Warns

Event summary

  • Kearney's Supply Chain Navigator forecasts supply chain costs will rise 2.3 to 4 percent above baseline inflation.
  • The Navigator has a 95%+ accuracy rate over the past 10 quarters.
  • Four key factors are driving sustained cost pressure: a 30% average rise in tariffs, a one-third decrease in critical mineral exports, a 34% increase in geopolitical risk, and a 14% rise in global inventory.
  • Despite structural pressures, 70% of CEOs anticipate revenue growth of 10% or more this year.
  • Kearney highlights the importance of early signal recognition, aligned decision-making, and talent/technology integration for successful navigation.

The big picture

Kearney's Navigator signals a persistent shift in the supply chain landscape, moving beyond temporary disruptions to a new era of structural cost pressures. This challenges the prevailing narrative of easing inflation and highlights the need for businesses to proactively adapt their strategies, particularly in regions with differing economic conditions. The emphasis on talent and technology underscores the growing importance of human capital and digital capabilities in navigating this complex environment.

What we're watching

Regional Disparities
The divergence between the US's moderate inflationary regime and China's producer-price deflation will likely create complex sourcing and pricing strategies for multinational firms.
Adaptation Risk
Companies' current supply chain workarounds, while providing short-term relief, risk becoming long-term constraints as conditions evolve.
Talent Gap
The ability of organizations to interpret supply chain signals and coordinate cross-functional responses will be a key differentiator, potentially exacerbating existing talent shortages.

Kearney Partners with ServiceNow to Embed Agentic AI in Enterprise Workflows

Event summary

  • Kearney, a global management consulting firm, has partnered with ServiceNow to focus on implementing agentic AI within client organizations.
  • The collaboration centers on Kearney's process reimagination expertise combined with ServiceNow's AI platform.
  • A recent client engagement using this approach resulted in over 30% annual run-cost reduction in an IT organization.
  • The joint offering aims to unify fragmented workflows across sales, operations, and service functions.

The big picture

The partnership reflects a growing trend of management consulting firms integrating AI platforms into their service offerings to address the increasing demand for enterprise-scale digital transformation. Agentic AI, which aims to automate decision-making and adapt processes, represents a significant evolution beyond traditional automation, and Kearney's focus on BPR.ai signals a strategic shift towards fundamentally redesigning business operations. ServiceNow's position as an 'AI control tower' underscores its ambition to be a central hub for AI-driven business reinvention.

What we're watching

Implementation Risk
The success of this partnership hinges on Kearney's ability to translate ServiceNow's platform capabilities into tangible, scalable results for clients, moving beyond pilot programs.
Competitive Landscape
Other consulting firms are likely to pursue similar partnerships with AI platform providers, intensifying competition for enterprise transformation projects.
Workflow Adoption
The pace at which organizations adopt agentic AI-driven workflows will depend on factors like workforce training, change management, and integration with legacy systems.

CTOs Prioritize Energy Efficiency in Sustainability Push, Data Gaps Hamper AI Integration

Event summary

  • A Kearney study found that over 95% of CTOs are actively involved in driving sustainability initiatives.
  • Energy-related investments dominate sustainability budgets, driven by measurable cost savings and efficiency gains.
  • While 84% of organizations consider sustainability in R&D, only 38% embed it in standard decision-making frameworks.
  • 38% of CTOs cite data availability and quality as a major barrier to AI-driven sustainability solutions.
  • The survey included 600 CTOs from global organizations with over $1 billion in annual turnover, across eight countries.

The big picture

The Kearney study highlights a significant shift in corporate responsibility, with CTOs now central to sustainability efforts. This trend underscores the increasing recognition that sustainability is not merely a compliance issue, but a core technology and operational challenge. The focus on energy efficiency reflects a pragmatic approach, prioritizing initiatives with demonstrable ROI, while the data limitations reveal a critical bottleneck for leveraging AI to accelerate progress.

What we're watching

Execution Risk
The disconnect between sustainability considerations in R&D and their integration into formal decision-making frameworks suggests a risk of inconsistent implementation and potentially missed targets.
Data Readiness
The significant barrier of data availability and quality will likely constrain the broader adoption of AI-powered sustainability solutions, requiring investment in data infrastructure and governance.
Economic Alignment
The prioritization of energy efficiency over circularity demonstrates the importance of aligning sustainability initiatives with clear economic benefits to ensure continued investment and momentum.
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