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West Monroe leaders from each industry discuss the innovations, strategies, and challenges that will define the next year for their industry.
December 17, 2024
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2024 has been a year of significant anticipation, with political, economic, and technological changes setting the stage for transformative shifts in 2025. In this episode, we dive deep into what’s ahead for seven critical industries—energy and utilities, private equity, insurance, healthcare, high-tech and software, manufacturing, and financial services. West Monroe leaders from each industry discuss the innovations, strategies, and challenges that will define the next year and what will set industry winners apart in the face of change.
Paul DeCotis, Energy and Utilities: “My biggest prediction for the industry in 2025 is increased regulatory pushback, which will limit revenue collection and rate increases needed to fund infrastructure investments for anticipated load growth. We’re already seeing examples of this. For instance, a utility recently requested a $75 million rate increase to meet load growth needs, but regulators responded with a $45 million revenue decrease instead. This gap threatens utilities’ ability to provide safe, reliable electricity and could jeopardize their access to capital markets, making it more expensive and difficult to secure funding. However, there may be partial solutions. Still, the immediate challenge in 2025 will be navigating regulatory resistance amid high costs and uncertain load demands.”
Keith Campbell, Private Equity: “My biggest prediction for private equity in 2025 is that AI will finally deliver measurable results for portfolio companies. After years of pitching private equity firms to build the "fund of the future" and invest in data infrastructure, 2025 will be the year they truly prioritize their own fund operations. Following the lead of public markets and hedge funds, private equity firms will start leveraging their data effectively, unlocking value that has been untapped for far too long.”
Peter McMurtrie, Insurance: “My biggest prediction for the industry is a growing need for investment in business transformation to improve risk selection, pricing, and operational efficiency. This also stems from rising customer demands for greater personalization—whether it’s commercial clients seeking deeper industry expertise from their insurance partners or individuals expecting insurers to understand and meet their needs more effectively. Meeting these expectations will require significant investments. The challenge will be making the right investments and executing effectively, especially with existing pressures. Some companies will get it right and emerge as winners, while others may stumble, leading to a polarization in industry performance.”
Larry Briski, Healthcare: “My big prediction for the healthcare industry next year is the continued use of AI in all aspects, and in a very ethical way. I emphasize "ethical" because it’s not about taking decisions away from human beings. It’s about creating supplemental information to help humans do their jobs more efficiently and effectively—on both the payer side and the hospital side. What we won’t see next year is AI being unleashed to make decisions about people’s care and health. We’re not there as a society, and the technology isn’t ready. It’s all about providing supplemental information for humans to make better, more effective decisions and deliver improved care for patients.”
Dhaval Moogimane, High-Tech and Software: “One big prediction is that we’ll see a gradual opening of the capital markets for tech over the next 12 months, which could reignite deal flow. After a period of stagnation—marked by large tech companies holding back on transactions and a stalled IPO market—the economic environment seems poised for change. This shift could unlock opportunities for venture-backed firms, innovators, and private equity-invested companies to raise capital and drive activity. The past 24 months have seen significant venture investment, but many companies have struggled to secure follow-on funding. As the capital markets open, we’ll likely see increased transactions that could create clear winners and losers. While global uncertainty remains a factor, this change has the potential to energize all stages of the tech ecosystem.”
Randal Kenworthy, Manufacturing: “The biggest prediction for manufacturing in 2025 is the adoption of Industry 4.0 in mid-market manufacturing, which I think is really exciting. Historically, there’s been a big gap between enterprises, Fortune 100 manufacturers and mid-market manufacturing. I see in 2025 an increasing adoption of Industry 4.0 in mid-market for a couple of reasons. First, there’s going to be a lot of dry powder coming off from private equity firms. Private equities have historically focused on mid-market, and as more private equity firms move into investing in mid-market, companies will have more capital allocation to drive adoption. This, coupled with competitive pressures like tariffs driving nearshoring and overall competition, will push companies to differentiate. The cost and capability of adopting some Industry 4.0 technologies have also come down, making automation and digital solutions more palatable. Finally, labor shortages will play a role, as adopting Industry 4.0 helps reduce reliance on manual labor.”
Jordan Sternlieb, Financial Services: “The conditions are set for a really strong 2025 for banks. We’ve already seen some bank stocks spike in early November, and the macro environment is much better than it has been in recent years. For many reasons, I believe 2025 will be a standout year for banks. We’re likely to see growth both organically and inorganically, with more M&A activity on the horizon. That trend has already started in 2024 and should accelerate next year. As I said earlier, I also expect loan demand to strengthen significantly. While it’s not quite there yet, I anticipate it picking up in 2025. After a few challenging years, 2025 looks poised to be a banner year for banks.”
Keith serves as the global Mergers & Acquisitions lead, specializing in creating value in complex carve-out transactions while reducing costs and timelines for clients.
As the East Coast Energy & Utilities lead, Paul leverages over 45 years of experience to drive innovative solutions for utilities.
Randal leads West Monroe’s Consumer & Industrial Products practice, helping clients stay agile and innovative in a rapidly evolving industry.
Peter drives transformational change in the insurance industry, leveraging over 30 years of experience to deliver performance optimization and measurable results.
Dhaval serves as West Monroe's Software industry lead, driving growth strategies for software companies by capitalizing on emerging trends and delivering innovative solutions.
Jordan leads West Monroe’s Los Angeles office and our Financial Services practice, driving growth and digital transformation for clients across key industries.
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