The average U.S. household now has a total of 25 connected devices, across 14 different categories (up from 11 in 2019), including laptops, tablets and smartphones; video streaming devices and smart TVs; wireless headphones and earbuds; gaming consoles and smart home devices; and fitness trackers and connected exercise machines.
Thirty-one percent of Americans admit to feeling overwhelmed by the number of devices and subscriptions they need to manage.
Sixty-six percent of households have smart home devices; 39% of those smart home device owners paid for increased home internet speed.
More than 50% of U.S. adults had virtual doctor visits, and 82% of those who used virtual doctor visits claimed to be satisfied with the experience.
Fifty-eight percent of U.S. households have a smartwatch or fitness tracker, and 39% of consumers own one personally. Among device owners, 14% bought their smartwatch or fitness tracker since the start of the pandemic.
Seven-in-10 consumers who began smartphone-based retail behaviors, such as mobile ordering, during the pandemic intend to continue those behaviors.
Among respondents planning to switch mobile providers in the next year, the top reason is to access 5G service.
Why this matters
In March 2020, households became the center of daily American life — and connectivity took on newfound importance. With work, school, medical visits, fitness and retail shopping all crowding under one roof, rapidly shifting needs drove sudden demand for an evolving suite of connected devices and digital services. The second edition of “Deloitte’s Connectivity & Mobile Trends 2021 Survey,” an online survey of 2,009 U.S. consumers conducted in March 2021, saw households beginning to push the limits of connectivity. More consumers upgraded their home broadband, added Wi-Fi extenders, and expanded their mobile data plans. While connectivity providers and device makers quickly rallied to keep the nation connected and productive, many consumers were overwhelmed with managing a wide range of devices, services and communications suddenly necessary for life at home.
Homework takes on new meaning
Networks, services, devices and institutions rallied to effectively support the shift to working and schooling from home. Some had connectivity and technology issues but for many, human factors posed more of a challenge.
- At the start of 2021, 55% of U.S. households included someone working from home and 43% had someone schooling from home. Top benefits of at-home behaviors were the ability to reduce the chances of getting COVID-19, closely followed by having no commute and being more comfortable.
- Twenty-eight percent of home workers and 32% of home schoolers reported that they struggled to connect to the internet from certain locations in their home.
- Workers at home cited the inability to meet face-to-face with colleagues or clients as a top challenge, followed by working longer hours than they would in-person, and being distracted by non-work activities. For home schoolers, the top challenge was getting distracted by non-school online activities, followed by not being able to meet face-to-face with teachers and classmates, and doing more schoolwork than if in-person.
Virtualized health care: a successful beta test
Recent growth in inexpensive and easy videoconferencing helped medical organizations overcome distance challenges to deliver much needed virtual house calls during the pandemic. The pandemic’s urgency also suspended some of the regulatory barriers that made it difficult for providers to connect virtually with patients. This was good news for consumers who felt virtual doctor visits helped them continue to receive care during the pandemic, while minimizing risk of exposure to themselves and to other patients.
- More than 50% of U.S. respondents had virtual doctor visits, and 29% of adult respondents assisted someone else in their household with a virtual visit.
- Eighty-two percent of those respondents using virtual doctor visits claimed to be satisfied with the experience.
- Among the benefits of attending virtual medical visits, 44% cited ease in attending appointments, 43% said it reduced their chances of getting COVID-19, 20% said it was easier to schedule appointments, and 10% cited ease in sharing medical data with doctors.
- Sixty-two percent said they are likely to schedule future virtual appointments after the pandemic ends.
- However, patients missed the human touch and face-to-face interactions (28%) and were frustrated with medical staff’s inability to directly measure vital statistics (21% overall but higher among older patients).
Does this mean healthier innovation?
Success with virtual doctor visits may bode well for future health care innovation. As wearables advance to record more discrete health, fitness and wellness data, their ability to support health care providers will likely grow, along with many users’ desire to share more of this data with their providers.
- Overall, 58% of households have a smartwatch or fitness tracker, and 39% of consumers own one personally. Among device owners, 14% bought their smartwatch or fitness tracker since the start of the pandemic.
- The largest use reported is for health and fitness (55%), primarily to measure walking steps and athletic performance, track heart health, and monitor sleep and calories.
- Among those interested in wearables, 39% listed cost as the primary reason they haven’t bought one — considerably larger than other factors. Yet, more seem to see the value of wearables, especially for health and fitness — 27% of those who don’t have a smartwatch or fitness tracker in their household are interested in buying one, up from 24% before COVID-19.
- Sixty percent of users claim to not be particularly concerned about the privacy of their wearable-generated data.
Smartphones led to smart behaviors
Both in and out of the home, smartphones helped people get on with their lives while mitigating pandemic risks. Users adopted a range of new digital behaviors, including online mobile payment services, contactless store payments and shopping and buying online from local providers who offer home delivery or curbside pickup. These mobile solutions were available prior to COVID-19, but the pandemic further highlighted their value.
- Using a mobile app or website to order food from a local provider grew from 36% to 56% during COVID-19.
- Using a mobile app or website to order a product and then pick it up at a local store grew from 31% to 51%.
- Contactless payments jumped from 28% to 46% during the pandemic; using mobile payments to shop on social media grew 28% to 42%.
- Among those who began smartphone-based retail behaviors during the pandemic, around 70% intend to continue most of those behaviors.
A true test of connectivity
The survey also revealed that while connectivity held up remarkably well to the demands of unexpectedly crowded homes during the pandemic, many households had reached the limits of broadband, wireless and Wi-Fi networks. And with reduced movement outside the home during the pandemic, it’s not yet clear how well existing smartphones and mobile connectivity will serve post-pandemic behaviors.
Since the pandemic began, 19% of those with home internet had upgraded to a higher-speed home internet service and 8% switched providers.
Those who switched most often cited cost, followed closely by reliability, inadequate coverage throughout the home, and slow connectivity.
Around 70% of consumers said their home Wi-Fi met their needs for range and speed, but more have tried to fix dropouts and dead spots by extending their home networks. During the pandemic, 30% of home internet users purchased Wi-Fi extenders, 19% bought mobile hotspots, and 14% added mesh Wi-Fi networks.
Close to 40% of households with mobile data plans made some change to their mobile data plan since the start of the COVID-19 pandemic. Upgrading to a new phone was the highest driver for this, followed by switching to an unlimited data plan and adding 5G.
Sixty-six percent of respondents noted they have had their smartphone for at least a year, while 31% noted they plan on upgrading within a year.
Among respondents planning to switch mobile providers in the next year, the largest reason is to get 5G service, followed closely by getting better value for the price.
Among those who do not yet have 5G mobile coverage, 54% say they intend to eventually buy a 5G-compatible smartphone and 52% will sign up for a 5G mobile data plan with their carrier, when 5G becomes available.
Renewable Energy Jobs Reach 12 Million Globally
Renewable energy employment worldwide reached 12 million last year, up from 11.5 million in 2019, according to the eighth edition of Renewable Energy and Jobs: Annual Review 2021. The report was released by the International Renewable Energy Agency (IRENA) in collaboration with the International Labour Organization (ILO) at a high-level opening of IRENA’s Collaborative Framework on Just and Inclusive Transitions, co-facilitated by the United States and South Africa.
The report confirms that COVID-19 caused delays and supply chain disruptions, with impacts on jobs varying by country and end use, and among segments of the value chain. While solar and wind jobs continued leading global employment growth in the renewable energies sector, accounting for a total of 4 million and 1.25 million jobs respectively, liquid biofuels employment decreased as demand for transport fuels fell. Off-grid solar lighting sales suffered, but companies were able to limit job losses.
China commanded a 39% share of renewable energy jobs worldwide in 2020, followed by Brazil, India, the United States, and members of the European Union. Many other countries are also creating jobs in renewables. Among them are Viet Nam and Malaysia, key solar PV exporters; Indonesia and Colombia, with large agricultural supply chains for biofuels; and Mexico and the Russian Federation, where wind power is growing. In Sub-Saharan Africa, solar jobs are expanding in diverse countries like Nigeria, Togo, and South Africa.
“Renewable energy’s ability to create jobs and meet climate goals is beyond doubt. With COP26 in front of us, governments must raise their ambition to reach net zero,” says Francesco la Camera, IRENA Director-General. “The only path forward is to increase investments in a just and inclusive transition, reaping the full socioeconomic benefits along the way.”
“The potential for renewable energies to generate decent work is a clear indication that we do not have to choose between environmental sustainability on the one hand, and employment creation on the other. The two can go hand-in-hand,” said ILO Director-General, Guy Ryder.
Recognising that women suffered more from the pandemic because they tend to work in sectors more vulnerable to economic shocks, the report highlights the importance of a just transition and decent jobs for all, ensuring that jobs pay a living wage, workplaces are safe, and rights at work are respected. A just transition requires a workforce that is diverse – with equal chances for women and men, and with career paths open to youth, minorities, and marginalised groups. International Labour Standards and collective bargaining arrangements are crucial in this context.
Fulfilling the renewable energy jobs potential will depend on ambitious policies to drive the energy transition in coming decades. In addition to deployment, enabling, and integrating policies for the sector itself, there is a need to overcome structural barriers in the wider economy and minimise potential misalignments between job losses and gains during the transition.
Indeed, IRENA and ILO’s work finds that more jobs will be gained by the energy transition than lost. An ILO global sustainability scenario to 2030 estimates that the 24-25 million new jobs will far surpass losses of between six and seven million jobs. Some five million of the workers who lose their jobs will be able to find new jobs in the same occupation in another industry. IRENA’sWorld Energy Transition Outlook forecasts that the renewable energy sector could employ 43 million by 2050.
The disruption to cross-border supplies caused by COVID-19 restrictions has highlighted the important role of domestic value chains. Strengthening them will facilitate local job creation and income generation, by leveraging existing and new economic activities. IRENA’s work on leveraging local supply chains offers insights into the types of jobs needed to support the transition by technology, segment of the value chain, educational and occupational requirements.
This will require industrial policies to form viable supply chains; education and training strategies to create a skilled workforce; active labour market measures to provide adequate employment services; retraining and recertification together with social protection to assist workers and communities dependent on fossil fuels; and public investment strategies to support regional economic development and diversification.
Read full report
In highly uneven recovery, global investment flows rebound
After a big drop last year caused by the COVID-19 pandemic, global foreign direct investment (FDI) reached an estimated $852 billion in the first half of 2021, showing a stronger than expected rebound.
It shows the increase in the first two quarters in FDI, recovered more than 70 per cent of the losses stemming from the COVID-19 crisis in 2020.
For the UNCTAD‘s director of investment and enterprise, James Zhan, the good news “masks the growing divergence in FDI flows between developed and developing economies, as well as the lag in a broad-based recovery of the greenfield investment in productive capacity.”
Mr. Zhan also warns that “uncertainties remain abundant”.
The duration of the health crisis, the pace of vaccinations, especially in developing countries, and the speed of implementation of infrastructure stimulus, remain important factors of uncertainty.
Other important risk factors are labour and supply chain bottlenecks, rising energy prices and inflationary pressures.
Despite these challenges, the global outlook for the full year has improved from earlier projections.
The growth in the next few months should be more muted than the in the first half of the year, but it should still take FDI flows to beyond pre-pandemic levels.
Between January and June, developed economies saw the biggest rise, with FDI reaching an estimated $424 billion, more than three times the exceptionally low level in 2020.
In Europe, several large economies saw sizeable increases, on average remaining only 5 per cent below pre-pandemic quarterly levels.
Inflows in the United States were up by 90 per cent, driven by a surge in cross-border mergers and acquisitions.
FDI flows in developing economies also increased significantly, totalling $427 billion in the first half of the year.
There was a growth acceleration in east and southeast Asia (25 per cent), a recovery to near pre-pandemic levels in Central and South America, and upticks in several other regional economies across Africa and West and Central Asia.
Of the total recovery increase, 75 per cent was recorded in developed economies.
High-income countries more than doubled quarterly FDI inflows from rock bottom 2020 levels, middle-income economies saw a 30 per cent increase, and low-income economies a further nine per cent decline.
Mixed picture for investors
Growing investor confidence is most apparent in infrastructure, boosted by favourable long-term financing conditions, recovery stimulus packages and overseas investment programmes.
International project finance deals were up 32 per cent in number, and 74 per cent in value terms. Sizeable increases happened in most high-income regions and in Asia and South America.
In contrast, UNCTAD says investor confidence in industry and value chains remains shaky. Greenfield investment project announcements continued their downward path, decreasing 13 per cent in number and 11 per cent in value until the end of September.
The combined value of announced greenfield investments and project finance deals rose by 60 per cent, but mostly because of a small number of very large deals in the power sector.
International project finance in renewable energy and utilities continues to be the strongest growth sector.
The investment in projects relevant to the SDGs in least developed countries continued to decline precipitously. New greenfield project announcements fell by 51 per cent, and infrastructure project finance deals by 47 per cent. Both had already fallen 28 per cent last year.
Capabilities fit is a winning formula for M&A: PwC’s “Doing the right deals” study
Ensuring there is a capabilities fit between buyer and target is key to delivering a high-performing deal, according to a new PwC study of 800 corporate acquisitions. . The study finds that capabilities-driven deals generated a significant annual total shareholder return (TSR) premium (equal to 14.2% points) over deals lacking a capabilities fit.
The “Doing the right deals” study looks at the 50 largest deals with publicly-listed buyers in each of 16 industries and evaluates the characteristics that delivered superior financial outcomes for the buyers, as measured by annual TSR.
A capability is defined as the specific combination of processes, tools, technologies, skills, and behaviours that allows the company to deliver unique value to its customers.
Two types of deals were found to outperform the market: capabilities enhancement deals – in which the buyer acquires a target for a capability it needs — and capabilities leverage deals – in which the buyer uses its capabilities to generate value from the target. These represent a true engine of value creation, delivering average annual TSR that was 3.3% points above local market indices. Deals without these characteristics – limited-fit deals – had an average annual TSR of -10.9% points compared to the local market indices.
While 73% of the largest 800 deals analysed sought to combine businesses that did fit from a capabilities perspective, 27% were limited-fit deals. The analysis shows that for every dollar spent on M&A, roughly 25 cents were spent on such limited-fit deals that in many cases destroyed shareholder value.
Alastair Rimmer, Global Deals Strategy Leader, PwC UK said: “Our analysis confirms that deals where the buyer is focused on enhancing its own capabilities or leveraging its capabilities to improve the target can result in a substantial TSR premium. Whether a deal creates value depends less on whether it is aimed at consolidation, diversification or entering new markets. What matters is whether there is a solid capabilities rationale between the buyer and the target.”
Capabilities fit delivers shareholder value across industries
The capabilities premium was found to be positive across all of the 16 industries studied. The share of capabilities-driven deals was highest in pharma & life sciences (92%), an industry where deals often combine one company’s innovation capabilities with another’s strength in distribution. Other leading industries in capabilities fit deals were health services and telecommunications (both with 90% capabilities-driven deals) and automotive (86%). Limited fit deals were found to be most prevalent in the oil & gas industry (62%), where asset acquisition can play an important role in addition to capabilities fit.
The analysis shows that the stated strategic intent of a deal, as defined in corporate announcements and regulatory filings, has little to no impact on value creation. Whether a deal fits or not depends less on stated goals of consolidation, diversification or entering new markets. What matters is whether there is a capabilities fit between the buyer and the target. Deals aiming for geographic expansion notably stood out as performing less well than others, largely because many of them (34%) were limited-fit deals.
The M&A playing field has shifted due to COVID-19
More than ever, companies must be clear in defining which capabilities they can leverage to succeed, and which capabilities gaps they need to fill.
Hein Marais, Global Value Creation Leader, PwC UK added: “Deal rationales have shifted in a COVID context, reflecting the heightened need for new and different capabilities if an enterprise is to generate value and create sustained outcomes. The need to move quickly increases the pressure to do deals at pace – and thereby the risk of failing to evaluate capabilities fit with enough care. Ensuring such capabilities fit, however, dramatically increases the chances of your deal creating value.”
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