Businesses poured a staggering $95 trillion into everything from AI to employee wellness last year, revealing a world where technology and talent now command the corporate checkbook.
Key Takeaways
- In 2023, global business spending on information technology reached $4.9 trillion, marking a 8.1% increase from 2022
- U.S. businesses allocated 11.2% of their total budgets to IT in 2023, up from 10.5% in 2022
- Enterprise software spending by businesses worldwide hit $919 billion in 2023
- U.S. businesses spent 4.1% of revenue on marketing in 2023, averaging $35,000 per employee
- Global digital advertising spend by businesses reached $522 billion in 2023
- B2B marketing budgets averaged 9.1% of revenue in 2023 for U.S. firms
- U.S. total compensation spending by businesses was $11.6 trillion in 2023
- Global corporate training expenditure reached $370 billion in 2023
- U.S. businesses spent an average of $1,252 per employee on training in 2023
- U.S. total business expenses reached $18.5 trillion in 2022 (latest full data)
- Global corporate profits after tax were $3.8 trillion in 2023, with spending on ops at 85% of revenue
- U.S. nonfinancial corporate business debt outstanding was $20.3 trillion in Q4 2023
- U.S. manufacturing sector operating expenses hit $6.4 trillion in 2023
- Retail trade businesses spent $5.8 trillion on costs in U.S. 2023
- Healthcare industry expenditures by U.S. providers were $4.5 trillion in 2023
Global business spending surged across technology, marketing, and employee compensation in 2023.
Human Capital Spending
- U.S. total compensation spending by businesses was $11.6 trillion in 2023
- Global corporate training expenditure reached $370 billion in 2023
- U.S. businesses spent an average of $1,252 per employee on training in 2023
- Employee benefits costs averaged 30.8% of total payroll for U.S. firms in 2023
- Global recruitment spending by businesses hit $223 billion in 2023
- Diversity and inclusion program spending averaged $1.5 million per large U.S. company in 2023
- Employee wellness program budgets reached $8 billion globally in 2023 for corporations
- U.S. employer-sponsored health insurance premiums averaged $8,435 per employee in 2023
- Executive compensation packages averaged $14.2 million for S&P 500 CEOs in 2023
- Global talent acquisition tech spending was $6.2 billion in 2023
- U.S. businesses spent 7.2% of revenue on employee compensation in retail sector 2023
- Learning management systems spending hit $22.5 billion globally in 2023
- Employee engagement software expenditure was $1.8 billion worldwide in 2023
- U.S. pension contributions by employers totaled $312 billion in 2023
- Remote work tool spending per employee averaged $2,500 in 2023 for enterprises
- Global HR tech market size reached $81.6 billion in 2023 for businesses
- U.S. firms spent $92 billion on employee turnover costs in 2023
- Leadership development programs cost businesses $50 billion globally in 2023
- U.S. wage and salary disbursements by businesses $10.8 trillion 2023
- Supplements to wages (benefits) $2.3 trillion U.S. businesses 2023
- Global freelance platform spending by businesses $1.5 trillion 2023
- U.S. tech sector avg salary spend $200k per employee 2023
- Employee referral program costs $4,000 per hire avg 2023
- Corporate volunteering program spending $8 billion U.S. 2023
- Global e-learning market for corporate training $315 billion 2023
- U.S. employer 401(k) contributions $500 billion 2023
- HR analytics software spend $3.4 billion globally 2023
- Average onboarding cost per employee $4,207 U.S. 2023
- Global employee assistance programs spend $5.2 billion 2023
- U.S. manufacturing labor costs 12.5% of revenue 2023
- Tech firms spent 25% revenue on talent 2023 avg
Human Capital Spending Interpretation
All told, the modern corporate playbook appears to be one part wildly expensive bet on talent, one part desperate effort to keep that expensive talent from leaving or collapsing, and a final, hefty part hoping that wellness seminars and new software can somehow bridge the gap in between.
Industry-Specific
- U.S. manufacturing sector operating expenses hit $6.4 trillion in 2023
- Retail trade businesses spent $5.8 trillion on costs in U.S. 2023
- Healthcare industry expenditures by U.S. providers were $4.5 trillion in 2023
- Financial services firms spent $1.2 trillion on operations globally in 2023
- Tech sector R&D spending was $500 billion worldwide in 2023
- Energy sector capital expenditures reached $800 billion globally in 2023
- Construction industry material costs spending was $1.9 trillion in U.S. 2023
- Hospitality businesses spent $2.1 trillion on operations worldwide in 2023
- Automotive manufacturing expenditures totaled $3 trillion globally in 2023
- Wholesale trade operating expenses were $7.2 trillion in U.S. 2023
- Transportation and warehousing costs hit $2.8 trillion for U.S. businesses 2023
- Information sector expenditures totaled $1.6 trillion in U.S. 2023
- Professional services firms spent $4.9 trillion globally in 2023
- Real estate business operating costs were $3.3 trillion in U.S. 2023
- Mining sector expenditures reached $650 billion worldwide 2023
- Food and beverage manufacturing costs $1.4 trillion in U.S. 2023
- Pharmaceuticals R&D and ops spending $1.5 trillion globally 2023
- Aerospace and defense business spending $900 billion in 2023
Industry-Specific Interpretation
America's business checkbook reveals a staggering truth: while we're brilliantly efficient at spending mountains of money across every sector, from curing diseases to building cars, the real innovation might just be figuring out how to pay for it all.
Marketing & Advertising
- U.S. businesses spent 4.1% of revenue on marketing in 2023, averaging $35,000 per employee
- Global digital advertising spend by businesses reached $522 billion in 2023
- B2B marketing budgets averaged 9.1% of revenue in 2023 for U.S. firms
- Social media advertising expenditure by global businesses was $153 billion in 2023
- Email marketing spend averaged $42 per customer annually for businesses in 2023
- Content marketing budgets for enterprises reached $412 billion globally in 2023
- Programmatic advertising spend by businesses hit $488 billion worldwide in 2023
- Influencer marketing expenditure grew to $21.1 billion globally in 2023
- Search engine marketing spend by U.S. businesses was $82 billion in 2023
- Video advertising budgets for businesses reached $192 billion globally in 2023
- Event marketing spending averaged 4.5% of total marketing budgets in 2023 for enterprises
- Global business spending on trade shows and events was $30 billion in 2023
- SEO services expenditure by SMBs averaged $10,200 annually in 2023
- PPC advertising costs per click averaged $2.69 for Google Ads in 2023 across industries
- Brand sponsorship deals spending by corporations hit $68 billion globally in 2023
- Direct mail marketing spend was $8.7 billion in the U.S. for businesses in 2023
- Affiliate marketing commissions paid by businesses reached $15.7 billion globally in 2023
- Mobile app advertising spend by enterprises was $362 billion worldwide in 2023
- Global marketing spend by businesses was $1.3 trillion in 2023
- U.S. TV advertising spend by corporations $65 billion in 2023
- Out-of-home advertising expenditure $28 billion globally 2023 businesses
- Native advertising spend reached $12.5 billion U.S. 2023
- B2C marketing budgets averaged 10.4% of revenue 2023
- Retargeting ad spend by e-commerce businesses $45 billion 2023
- Podcast advertising revenue from businesses $2 billion U.S. 2023
- Connected TV ad spend $30 billion globally 2023
- Display advertising expenditure $220 billion worldwide 2023
- Guerrilla marketing budgets averaged $500k per campaign for brands 2023
- SMS marketing spend per business $1,200 annually avg 2023
- Global sponsorship market $113 billion in 2023 for businesses
- U.S. SMB marketing spend averaged 7.8% revenue 2023
- Performance marketing allocation 62% of budgets 2023 enterprises
Marketing & Advertising Interpretation
It seems we've reached the point where we spend trillions globally to remind everyone we exist, all while hoping an email for forty-two bucks is the one that finally gets a reply.
Technology Spending
- In 2023, global business spending on information technology reached $4.9 trillion, marking a 8.1% increase from 2022
- U.S. businesses allocated 11.2% of their total budgets to IT in 2023, up from 10.5% in 2022
- Enterprise software spending by businesses worldwide hit $919 billion in 2023
- Cloud services expenditure among global enterprises grew to $599 billion in 2023, a 20.4% YoY increase
- Cybersecurity spending by businesses reached $188 billion globally in 2023
- Data center systems spending by enterprises was $236 billion in 2023 worldwide
- AI-related spending by businesses is projected to reach $154 billion in 2024
- U.S. corporate IT budgets averaged $12.4 million per company in 2023 for firms with 1,000+ employees
- Mobile device management spending grew 15% YoY to $12.5 billion in 2023 globally
- Business spending on edge computing reached $18.6 billion in 2023
- Global enterprise spending on communications services was $1.47 trillion in 2023
- IT services spending by businesses hit $1.32 trillion worldwide in 2023
- Device spending in IT budgets reached $759 billion globally in 2023
- Spending on data management software by enterprises was $127 billion in 2023
- Global business R&D spending on tech innovation totaled $1.2 trillion in 2023
- U.S. SMB IT spending averaged $450,000 per firm in 2023
- Enterprise collaboration tools spending reached $55 billion in 2023 globally
- Business analytics software expenditure was $71 billion worldwide in 2023
- Network equipment spending by businesses hit $112 billion in 2023
- Global IT outsourcing spending reached $586 billion in 2023 for businesses
Technology Spending Interpretation
The world's businesses, now devout digital disciples, have collectively decided that pouring nearly five trillion dollars into the IT collection plate is simply the cost of salvation, with cloud and cybersecurity as the priciest pews in the cathedral of commerce.
Total Expenditure
- U.S. total business expenses reached $18.5 trillion in 2022 (latest full data)
- Global corporate profits after tax were $3.8 trillion in 2023, with spending on ops at 85% of revenue
- U.S. nonfinancial corporate business debt outstanding was $20.3 trillion in Q4 2023
- Business investment in fixed assets was $3.1 trillion in U.S. 2023
- Global business services expenditure totaled $15.2 trillion in 2023
- Global business spending on total expenditure grew 5.2% YoY to $95 trillion in 2023
- U.S. corporate tax pre-payments indicated $2.9 trillion in deductible expenses Q1 2024
- Nonresidential fixed investment by businesses was $3.4 trillion annualized in U.S. 2023
- Structures spending in business investment hit $1.1 trillion in U.S. 2023
- Equipment investment by U.S. businesses was $2.3 trillion in 2023
- Intellectual property products spending reached $1.0 trillion in U.S. business 2023
Total Expenditure Interpretation
The global corporate machine is a monumentally expensive contraption that burns through nearly a hundred trillion dollars a year, yet for all its furious spending on everything from buildings to ideas, it still manages to squirrel away a tidy profit while carrying a debt load larger than many planets' GDP.
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