AI deployment requires reimagined operating models

Some of the most influential companies in today’s economy rarely make headlines. Known as the titanium economy, these small and mid-sized industrial businesses supply the parts, systems, and expertise that keep global supply chains operating.

In this episode of Supply Chain Now, Scott Luton is joined by Karin Bursa, Steffen Fuchs, Senior Partner at McKinsey & Company, and Ryan Fletcher, Partner at McKinsey & Company, to examine what makes these industrial companies so effective. The group discusses the characteristics that set them apart, from disciplined operations and close customer relationships to long-term thinking that helps them remain competitive across changing market conditions.

Steffen and Ryan also share perspectives from their work with companies in sectors such as automotive, aerospace, and energy. The discussion looks at how these organizations respond to supply chain disruptions, approach growth opportunities, and invest in their people and operations. Along the way, the group explores leadership decisions, workforce development, and how companies are applying new technologies to support continued growth.

Jump into the conversation:

(00:00) Intro

(02:28) Meet the guests and introductions

(05:05) Warmup: March Madness and theater roots

(08:22) Steffen discusses background in AI

(10:38) Ryan’s experience in mid-cap industries

(14:02) Defining the titanium economy concept

(19:50) Book impact and changes since 2022

(23:15) Global policy and geopolitics influences

(29:01) Resilience and supply chain adjustments

(35:27) The great amplification cycle explained

(37:14) Clusters, innovation, and regional growth

(38:00) Supply chain tailwinds and opportunities

(39:34) Top performers’ playbook for success

(41:25) Lead time and SKU management

(42:39) Capacity bets that lead to success

(46:02) AI as a competitive advantage

(47:53) Real-world examples of AI in practice

(54:36) Leadership lessons from the titanium economy

(01:00:40) Trends flying under the radar today

Additional Links & Resources:

1. Connect with Steffen Fuchs: https://www.linkedin.com/in/steffen-fuchs/
2. Connect with Ryan Fletcher: https://www.linkedin.com/in/ryanfletcher/
3. Connect with Karin Bursa: https://www.linkedin.com/in/karinbursa/
4. Learn more about McKinsey & Company: http://www.mckinsey.com
5. Learn more about our hosts: https://supplychainnow.com/about
6. Learn more about Supply Chain Now: https://supplychainnow.com
7. Watch and listen to more Supply Chain Now episodes here: https://supplychainnow.com/program/supply-chain-now
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This episode was hosted by Scott Luton and Karin Bursa, and produced by Trisha Cordes, Joshua Miranda, and Amanda Luton. For additional information, please visit our dedicated show page at: https://supplychainnow.com/titanium-economy-how-ai-supply-chains-reshaping-industrial-competitiveness-1559