Table of contents for June/July 2024 in Fortune

THE ROAD TO autonomous driving is not for the faint of heart. Look behind to view the wreck of Uber’s self-driving car. In the ditch to the left is General Motors’ Cruise robo-taxi. And that scent of burning rubber? That’s from the skid marks Apple made as it careened toward the exit ramp. But one funny-looking vehicle appears to be gaining momentum. Waymo, born 15 years ago as the “Google Self-Driving Car Project,” now offers fully autonomous rideshare services in Phoenix—where its driverless vehicles also make Uber Eats deliveries—as well as in San Francisco and part of Los Angeles; 50,000 paid Waymo rides take place across the three cities each week, the company recently announced. That paying passengers now routinely hop into empty Waymo vehicles, which gracefully move among…

MANY FIRMS DISCUSS THE ADVANTAGES OF pursuing smart technology and sustainable development goals. At Nitto Kohki, these elements are literally being built into the fabric of the business. When the company’s new production plant opens next year, it will feature energy-saving technology and labor-saving automation. According to CEO and representative director Akinobu Ogata, the components manufacturer is seeking to strengthen its sustainability and mitigate the looming workforce demographic crisis—while also offering a much-needed boost for the Fukushima area following the devastation of the Great East Japan Earthquake in 2011. “A new plant with the latest technology is being constructed, and steps have been taken to establish a multipurpose smart factory that can produce all Nitto Kohki products,” says Ogata. It’s not just the company’s capital projects supporting the green…

TO LEAF THROUGH the July 1955 issue of Fortune is to open an Eisenhower-era time capsule—black-and-white photography; cars with tail fins; so many men in neckties. But perhaps the biggest clue that you’ve tumbled out of the 21st-century business world can be found right in the table of contents: Most of the articles are about making physical things. There’s a feature about airplane engineering. There’s a profile of a pipeline builder. A reporter visits a town whose economy is devoted to making compressors for refrigerators. A photo essay by the legendary Walker Evans extols “The Beauties of the Common Tool”; it includes a full-page picture of a 56-cent crescent wrench. In 1955, Big Business built stuff. The issue also includes the first-ever Fortune 500 list. It is, in a…

ALMOST 10% OF THE COMPANIES on this year’s Fortune 500—49 in all—have made our list of America’s biggest businesses by revenue every year since its first edition, in 1955. All 49 are highlighted in these graphics, which also show their size relative to other Fortune 500 companies. The 70-Year Club is nothing if not diverse. (Pfizer, maker of Viagra, meet Hormel, maker of Spam.) But a few themes emerge from a closer look at these corporate endurance athletes. Among them: It’s an automotive nation. Six of the top 10 companies of 1955 either made cars or pumped the oil that fueled them. General Motors was No. 1; Chrysler (now part of Netherlandsbased Stellantis) was No. 6. Ford Motor didn’t report revenue publicly at the time, but trust us, it…

CHINA IS HOME TO SOME OF THE MOST POPULAR internet businesses today. Many of them may attribute their success to a secret weapon driving their growth: recommendation algorithms. Informed by artificial intelligence and machine learning, these formulas can provide customized products and services. Now, BOSS Zhipin (Kanzhun Limited), a leading Chinese recruitment platform based in Beijing, is leveraging the power of these algorithms to revolutionize HR technology. Founded in 2013 by CEO Jonathan Peng Zhao, BOSS Zhipin was built using a recommendation model, while most hiring platforms were using search-based models, to connect candidates and employers. This forward-thinking technical approach has propelled BOSS Zhipin to stunning growth, outpacing competitors in both its number of users and revenue over the past five years. In 2023, with a total of 166.8…

THE FORTUNE 500 HIGH-FLIER CLUB Tracking this year’s top 10 over the past two decades. WALMART ranked No. 1 on the 500 for the 12th year in a row—and has generated $6.3 trillion in revenue during its time at the top. Its growing market share among higher-income grocery shoppers helped Walmart boost profits 33% year over year. AMAZON.COM earned the No. 2 spot for a fifth consecutive year, and its 12% revenue growth narrowed the gap separating it from No. 1 Walmart. Amazon’s $91 billion cloud-services division accounted for 16% of revenue in 2023 — but two-thirds of profits. EXXON MOBIL endured a 17% sales decline as global oil prices fell, but it still claimed the No. 7 spot with $345 billion in revenue. The Texas-based energy giant is…

WHERE THE FORTUNE 500 LIVE For the first time since 2013, California stands alone at No. 1 for Fortune 500 companies, with 57 headquartered there; New York and Texas tied for second with 52. Four new or returning companies (DoorDash, Prologis, Clorox, and Monster Beverage) helped boost the Golden State’s total. The New York City region, meanwhile, boasts more headquarters than any other metro area. SKY-HIGH PROFITS Falling fuel costs and a rebound in business travel sent U.S. airlines’ earnings flying far above cruising altitude. American Airlines, Alaska Air, United Airlines, and Delta Air Lines each delivered profits that soared over their year-earlier levels. Southwest also saw strong revenue gains, but a major tech revamp ate into its profits. THE MOST MAGNIFICENT? The global AI boom generated enormous growth…

HEALTH CARE ORGANIZATIONS ARE facing ongoing economic challenges, labor shortages, and widespread physician burnout, according to the American Medical Association. Yet, they are under more pressure than ever to provide top-level care while also keeping up with rising operating costs. Because insurers and regulators largely shape pricing environments, organizations aren’t always able to charge more for services or receive timely payments for medical care—so streamlining expenses has become a priority. “Even though the cost of living and wages are increasing, reimbursement to organizations for procedures remains constant,” says Chocko Valliappa, CEO of Vee Healthtek, a provider of business services that deliver solutions to top health care organizations. “Something has to give for this to work.” In this high-cost landscape, software and technology have become strategic priorities for providers, as…

SUPER MICRO Computer spent over 30 years in one of the least sexy segments of the tech landscape: building high-performance servers. But lately the company has caught the broader AI wave, and it’s now plenty sexy. In the past five years, Super Micro’s shares have soared an astounding 3,454%. And over that time its annual fiscal revenue has doubled to $7.12 billion, enough to earn it a Fortune 500 debut at No. 498 this year. The company’s growth is being fueled by huge demand for data center servers used for training and operating artificial intelligence models. With more businesses using AI for more tasks, revenue for some server manufacturers is rapidly increasing. The truth is that Super Micro has much in common with Nvidia, another company that flew under…

“Flexibility and adaptability are the strengths of a trading company that matches the needs of the market.” FOR TRADING FIRMS, SUCCESS IS ABOUT MORE THAN BUYING, selling, and supplying. Instead, it’s about understanding how to work closely with a wide range of clients to keep business moving. For more than 120 years, Japanese company IWATA & Co., Ltd. has specialized in that kind of commerce—and its leadership hopes to continue playing a key role in a number of sectors for many years to come. Mainly operating in chemical sales and construction equipment, the Nagoya-based firm leverages not just its experience of those industries but also its ability to navigate sales and supply between different organizations. With trading products including chemicals, food, cars, homes and electronics, Takuya Iwata, Ph.D., president…

GEN ZERS AND MILLENNIALS ARE EXPECTED TO comprise 72% of the global workforce by 2029, according to the World Economic Forum. The aspirations and expectations that these generations have for their careers are critical for business leaders to understand. Deloitte’s 2024 Gen Z and Millennial Survey reveals that factors such as personal finances, environmental concerns, and emerging technologies greatly influence their career expectations. “These generations are grappling with financial insecurity and mounting anxiety about climate change. They are also considering how rapidly evolving technology will impact their jobs,” says Elizabeth Faber, global chief people and purpose officer, Deloitte Global. “But they continue to push for the changes they want to see, in the workplace and society more broadly.” Finances certainly play a role in Gen Zers’ and millennials’ career…

WHEN THINKING ABOUT THE STATE OF TEXAS, a few things might come to mind: cowboy culture, barbecue, or wide-open spaces—and maybe even the historic Alamo in San Antonio, an enduring symbol of the state’s deeply embedded independence. But thanks to continuing investments in infrastructure, education, and workforce development, for executives, entrepreneurs, employees, and the like, there’s one big thing that stands out about the Lone Star State: business. Over the past two decades, the state’s pro-growth policies have made Texas an attractive place for individuals and companies to plant new roots. Fifty-two Fortune 500 companies have headquarters in Texas—making it one of the most popular states for Fortune 500 corporate headquarters. And the state is set to continue making strategic investments to maintain its competitive advantage and allowing businesses…

SINCE THE 1980s, A RANGE OF TECHNOLOGIES have benefitted from publicly distributed code—also known as open-source software. This practice has helped independent developers and private organizations create new solutions with greater transparency, speed, and cost-efficiency. Now, as generative artificial intelligence (AI) powers the next wave of transformation, some believe it is essential to continue this legacy of collaboration—even as others call for it to remain under private control. “Open-source AI democratizes access to advanced technologies,” says Hakim Hacid, Ph.D., acting chief researcher, AI Unit, at Technology Innovation Institute (TII). “Individuals, companies, and government organizations can use it to encourage innovation and creativity, enabling them to experiment and develop novel applications and solutions.” TII, a global scientific research center and the applied research pillar of Abu Dhabi’s Advanced Technology Research…

PGA TOUR ENTERTAINMENT FIRST SET UP ITS HEADQUARTERS at the World Golf Village in St. Augustine, Fla., in 1997. At the time, the state-of-the-art 35,000-square-foot facility was home to one studio. But over the past 30 years, technology has advanced exponentially and so has the PGA TOUR—creating an increasing demand from fans for innovative ways to experience the game. To produce storytelling on par with this elevated era of golf, the TOUR has fast-tracked an expansive infrastructure upgrade that includes two arms: PGA TOUR Studios and PGA TOUR Fleet. Together, they will create dynamic live content for fans and allow the organization to more efficiently develop content for its platforms worldwide. A Fresh Focus on the Game In 2020, the PGA TOUR unveiled its new 187,000-square-foot headquarters in Ponte…

AS CLIMATE CHANGE CONCERNS INTENSIFY ACROSS SECTORS, consumers and industries are finding more ways to go green. A key part of this dedication to sustainability is purchasing from brands with firm environmental commitments. RPM International, a Medina, Ohio–based manufacturer of coatings, sealants, and building materials, is ensuring it’s meeting the growing demand for eco-conscious products and services. “The functionality of our products and services is well-aligned with our customers’ desire for sustainable solutions,” says chairman and CEO Frank Sullivan. “Our products and services center on protecting and extending the life of new and existing assets and heightening efficiency and sustainability in product formulations and processes.” Optimizing internal systems was a key element of the company’s initial Margin Achievement Plan (MAP), which was designed to accelerate growth and maximize operations.…

“We challenge ourselves to look at what we’re doing to ensure it’s truly adding value. This reflection enables us to weather disruptions, stay aligned with the evolving needs of our clients and customers, and find new areas for growth.”KEITH DEMMINGS PRESIDENT AND CEO, ASSURANT THOUGH THE TERM IS BROADLY USED IN business, data shows that “innovation” is more than just a buzzword. It’s an actionable strategy that can yield tangible results. Assurant, a leader in global business services, is a prime example of this practice in action. With a hyper-focus on technology, employee engagement, and client partnerships, Assurant fuels innovation through a top-down growth mindset. By adopting a culture of continuous learning, the Atlanta-based company has been able to adjust to a shifting economic climate with consistent financial success…

THE BANKING INDUSTRY HAS OFTEN been the first to deploy emerging technology to the masses, from ATMs in the 1960s to mobile banking in the early 2000s. Today, Ally Financial, one of the first digital-only banks in the U.S., continues to innovate with new tools designed to enrich the customer experience and expand access to crucial financial services. “We focus on being better every day—for our customers, our employees, and our communities,” says Sathish Muthukrishnan, Ally’s chief information, data, and digital officer. “That requires us to question the status quo, be open to change, have a growth mindset, and constantly disrupt ourselves to evolve.” Upheld by the belief that institutions have an inherent obligation to serve and uplift their communities, Ally is dedicated to promoting digital literacy and access.…

SINCE ITS FOUNDATION IN THE EARLY 20th century, Tokyu Corporation has played a major role in the history of Japanese communities, through urban development and then later through rail connections. The firm is now looking to help lead the nation’s cities into the future with a pioneering regeneration plan based around a growing district of Tokyo. The redevelopment in Shibuya, where the company’s headquarters is based, is designed to be a modern space for retail, offices, and nightlife while also attracting creative industries to the area. Masahiro Horie, president of Tokyu Corporation, said the scheme centered around Shibuya station is scheduled for completion within the next decade. Tokyu plans to continue its investment in the Greater Shibuya Area with a commitment of 500 billion yen (approximately $3.2 billion). The…

“We look to make profits in Japan and on the global stage. Our platform is the wider world.” IN AN AGE OF FAST-MOVING TECHNOLOGY, SEMICONDUCTOR manufacturing is increasingly becoming one of the most important sectors in the Japanese economy. Home to several key companies in the industry, the city of Kyoto is a major focal point for semiconductor production. According to Osamu Tsuji, chairman and CEO of electronics firm Samco, the region is the ideal base for tech developments due to its innovative traditions and global outlook. “We are proud of our long history. Until 150 years ago, Kyoto was the capital of Japan. Tokyo is now the center of politics, but we remain Japan’s technical hub,” says Tsuji. The business is supporting its research and development drive by…

SIXTY-TWO-YEAR-OLD founder Marie Jerusalem has never felt more able to adapt to the changing demands of the corporate world. “My body’s not as agile as it used to be, but mentally I’m stronger today than I’ve probably ever been in my entire career,” she tells Fortune. At 57, Jerusalem was let go from her chief people officer role in private equity. But she wasn’t financially, or emotionally, ready to retire. After working for a few years as a business consultant in HR, she pivoted to launch Rocket50, a membership community and job search platform that assists older workers. To get her business off the ground, she had to quickly acquire a host of new skills—from integrating AI to creating marketing and social media strategies. Jerusalem rejects the notion that…

SOMETHING HAS CAUGHT Satya Nadella’s attention. It’s a small thing—just a five-letter word inside a box, lurking in the corner of a complicated PowerPoint slide, flashed on a screen for a fraction of a second inside a convention hall in Kuala Lumpur, Malaysia. But it niggles. “You’re doing also Llama? You’re using both?” Nadella asks, a note of surprise in his voice. Llama is the AI model, not the animal. It is a piece of open-source software created by Meta, the social media giant that has pivoted hard to AI and is competing with Microsoft and others to dominate the foundations of the emerging generative AI economy. “Both” is a reference to the fact that this Malaysian agriculture technology company—chosen to show off its use of Microsoft’s technology to…

IT TOOK FIVE DECADES of failure to turn Tide Pods into an overnight success. The “unit-dose” detergent pods became one of the biggest-ever hits for consumer products giant Procter & Gamble not long after their 2012 debut. But P&G had launched an earlier attempt in the 1960s, called Redi-Paks, to utter indifference from consumers. Other iterations in the following decades, such as Rapid Tabs in the 1990s, also fizzled; the company just couldn’t quite master the formula for optimal release of the detergent. That is, until it did; now Tide Pods are a top seller in a $3 billion market. Today, the Tide Pods’ failed forebears have a place of honor in the “Wall of Failures” exhibit at P&G’s Heritage Center and Archives in Cincinnati—an internal museum at headquarters…

MODERN BUSINESS LEADERS HAVE ACCESS TO MORE TOOLS THAN EVER before to understand and engage their workforces. However, 2024 Gallup research found an ongoing decrease in employee engagement in the U.S.—marking the lowest level in more than a decade. To improve employee engagement and boost morale, organizations need a way to more effectively turn their HR data into action—and transform their workplaces. “Most organizations spend loads of time defining their values and describing what they’d like their cultures to be but lack the strategy or tools to bring it to life in observable ways,” says Tom Libretto, president of Workhuman, a leading provider of purpose-built employee recognition software. For the past 25 years, Workhuman has been revolutionizing the way employees celebrate, connect with, and appreciate one another in the…

JUST 25 MILES NORTH OF DALLAS, THE CITY OF Frisco has become a go-to destination for residents, workers, and business. Over the past three decades, this once small community has become one of the fastest growing cities in America. Situated in the Dallas-Fort Worth metro area, which is home to 22 Fortune 500 headquarter operations, Frisco has become one of the top cities attracting major companies. But its success has been no accident—it’s bolstered by the city’s location in Texas. “Texas offers a highly skilled and diverse workforce, central location, access to global markets, robust infrastructure, and the empowerment of local government—other states have to compete for the types of resources we are blessed with,” says Jason Ford, president of Frisco Economic Development Corporation (EDC), a nonprofit with the…

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