flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

What do Chengdu, Lagos, and Chicago have in common?

What do Chengdu, Lagos, and Chicago have in common?


By By Robert Cassidy, Editorial Director | April 5, 2011

They’re all “world middleweight cities” that are likely to become regional megacities (10 million people) by 2025—along with Dongguan, Guangzhou, Hangzhou, Shenzhen, Tianjin, and Wuhan (China); Kinshasa (Democratic Republic of the Congo); Jakarta (Indonesia); Lahore (Pakistan); and Chennai (India).

These “emerging middleweight” cities are among the “City 600,” the top 600 cities by contribution to global GDP growth from 2007 to 2005, as defined in a new report from McKinsey Global Institute: “Urban World: Mapping the economic power of cities”.

The 1.5 billion people who live in the City 600 (22% of world population) accounted for $30 trillion of GDP in 2007—more than half of global GDP. The top 100 alone generated $21 trillion, 38% of global GDP, according to McKinsey.

By 2025, these 600 cities will be home to 2.0 billion, a quarter of the world’s population, and account for $64 trillion, or 60% of global GDP.

The top 25 “hot spots” for GDP by 2025 include (in rank order) New York, Los Angeles, Chicago, Dallas, Washington, D.C., Houston, Philadelphia, Boston, and San Francisco, along with such places as São Paolo (Brazil), Rhein-Ruhr (Germany), Mexico City, Randstad (Netherlands), Shanghai, Beijing, and Hong Kong.

Other key findings of the McKinsey study:

• By 2025, the makeup of the City 600 will change as the center of gravity of the urban world moves south and east. One-third of developed market cities will no longer make the top 600.

• By 2025, up to 136 new cities will enter the City 600 list, all of them from the developing world—100 of them from China alone, including Haerbin, Shantou, and Guiyang.

• India will contribute 13 newcomers to the City 600 list, including Hyderabad and Surat. Latin America will add eight, notably Cancún (Mexico) and Barranquilla (Colombia).

• About 310 million more people of working-age population will live in the City 600 by 2025—almost 35% of the expansion of the global workforce, almost all of it in emerging markets and two-thirds in China and South Asia.

What do all these fascinating data points mean to the design and construction industry, and to you as an AEC professional? In a nutshell, the McKinsey people are saying, If you want to grow your business—and your career—over the next 15 years, you must look to foreign climes.

It is in the emerging cities that GDP will be growing at a faster rate than global GDP. Where the workforce will be expanding more quickly than in the rest of the world. Where demand for housing, retail shops, schools, libraries, museums, data centers, universities, office buildings, religious centers—all the magnificent structures you and your firms create and build—will be accelerating at a hyperfast rate compared to the growth, if any, in much of the developed world.

To be competitive in the coming decade and a half, AEC firms and professionals are going to have to shift their lines of sight eastward and southerly, to places with names like Luanda, Chongqing, Dhaka, Colombo, and Grande Vitória.

Related Stories

| Dec 18, 2013

Architecture Billings Index takes step back in November

After six months of steadily increasing demand for design services, the Architecture Billings Index paused in November, dipping below 50 for just the second time in 2013. 

| Dec 17, 2013

Kahn appoints Alan Cobb President and CEO

Cobb is the tenth president in the firm’s 118-year history. As President, Cobb is responsible for ensuring that all of the firm’s client issues are effectively address and that overall project team performance meets or exceeds client expectations for each and job the firm undertakes.

| Dec 17, 2013

CBRE's Chris Bodnar and Lee Asher named Healthcare Real Estate Executives of the Year

CBRE Group, Inc. announced today that two of its senior executives, Chris Bodnar and Lee Asher, have been named Healthcare Real Estate Executives of the Year by Healthcare Real Estate Insights.

| Dec 16, 2013

Is the metal building industry in a technology shift?

Automation is the future you can’t avoid, though you may try. Even within the metal building industry—which is made up of skilled tradesmen—automation has revolutionized, and will continue revolutionizing, how we work.

| Dec 16, 2013

Why employees don’t trust their leaders

Trust, one of the key elements to productive business relationships, is in short supply these days. An Associated Press-GfK poll discovered that only one-third of Americans say most people can be trusted and nearly two-thirds says “you can’t be too careful” in dealing with people.

| Dec 16, 2013

Construction materials prices remain stable in November

Overall, construction materials prices fell 0.5 percent in November and are up only 1.1 percent year over year, according to the Department of Labor’s Dec. 13 Producer Price Index.

| Dec 16, 2013

Helene Combs Dreiling, FAIA, inaugurated 2014 AIA President

Helene Combs Dreiling, FAIA, executive director of the Virginia Center for Architecture, was inaugurated as the 90th president of the American Institute of Architects (AIA) during ceremonies held on December 12th at the Andrew W. Mellon Auditorium.  She succeeds Mickey Jacob, FAIA, in representing nearly 83,000 AIA members.

| Dec 13, 2013

GRW acquires West Virginia design firm Chapman Technical Group

GRW is expanding its capabilities through the recent acquisition of Chapman Technical Group, a 36-person West Virginia-based firm.

| Dec 13, 2013

AIA, MIT issue joint report on impact of design on public health

The research looks at the health of eight U.S. cities and lays out a path for translating the research into meaningful findings for policy makers and urban planners. 

| Dec 11, 2013

Wyndham unveils hotel prototype for its Hawthorn Suites chain

The extended-stay hotel prototype reduces development costs by 46% for franchisees and enhances the overall guest experience.

boombox1
boombox2
native1

More In Category


Museums

UT Dallas opens Morphosis-designed Crow Museum of Asian Art

In Richardson, Tex., the University of Texas at Dallas has opened a second location for the Crow Museum of Asian Art—the first of multiple buildings that will be part of a 12-acre cultural district. When completed, the arts and performance complex, called the Edith and Peter O’Donnell Jr. Athenaeum, will include two museums, a performance hall and music building, a grand plaza, and a dedicated parking structure on the Richardson campus.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021