McKinsey and Co.’s report titled “Expand diversity among your suppliers—and add value to your organization” revealed that if corporate spending with minority- and women-owned business enterprises (MWBEs) is increased from $1 trillion to $2 trillion, it could help generate four million jobs and $280 billion in additional income.
Moreover, additional spending with MWBEs could create around 210,000 new jobs in executive and management roles for women and minorities. That would boost wealth creation and improve intergenerational income for diverse families. The report also found other things that could provide additional benefits for the Black community.
Shelley Stewart III, a senior partner at McKinsey, said a supply chain reset could help large corporations, especially as nearshoring and regional supply become a critical part of delivering to customers. Also, working with MWBEs can help corporations identify and capture cost savings of up to 8% and improve their agility, locational and innovation of products and services.