Spotlight On:Joseph McLauchlan, Managing Partner, KPMG
April 2025 — In an interview with Invest:, Joseph McLauchlan, managing partner at KPMG, said that the city’s strong talent pipeline, collaborative business environment, and commitment to innovation make it an ideal market for the firm. “What’s unique about San Antonio is that it offers the feel of a close-knit community while still being a large city. The culture is rich, and there’s a strong sense of connection among people, particularly within the business community, which feels close-knit.”
What makes San Antonio an ideal location for your firm, and how does the city differentiate itself from other markets?
Our firm operates across the United States and globally, so San Antonio, being a major metropolitan area, is a natural fit for us. We’ve had a presence here since 1958 and we’ve had deep roots in this great city ever since. What’s unique about San Antonio is that it offers the feel of a close-knit community while still being a large city. The culture is rich, and there’s a strong sense of connection among people, particularly within the business community. That kind of environment makes it an excellent place to do business.
In terms of talent, the city offers access to fantastic educational institutions such as Trinity University, University of Texas San Antonio (UTSA), St. Mary’s, Texas Lutheran University, and Texas State. These schools help educate and develop a strong local workforce. San Antonio is also known as Military City, USA, so there’s a significant military influence here, which has driven growth in cybersecurity. Institutions like UTSA are making major investments in that space. In addition, we’re home to thriving companies like Valero, USAA, and HEB. There’s a strong mix of public and private businesses, and the market just keeps growing.
What significant achievements or milestones did the firm reach over the past year?
The firm recently launched KPMG Law US, our new wholly owned legal services entity, which represents the first instance of a Big Four firm establishing a law practice in the United States. KPMG Law US will primarily deliver large-scale, process-driven work, such as volume contracting, remediation exercises, M&A-driven harmonization of contracts, and other legal managed services. Our focus will be where technology, scale and legal capabilities can come together to solve those legal business challenges. We’re investing heavily in this area to help legal teams focus on what matters most. Personally, I’m really energized by the potential. We’ve put a lot into our AI and tech infrastructure, and now we can apply that expertise to this new offering, as well as leverage our large globally-connected law firm network, which currently spans over 80 countries with a team of more than 3,800 legal professionals.
Are there any specific services experiencing higher demand?
We’re seeing more clients seek out our assistance when it comes to navigating the policy landscape right now. With legislative and regulatory changes so rapidly evolving, we’ve been counseling our clients on what we’re calling the “Tax Policy Trifecta”: 1) the upcoming expiration of the Tax Cuts and Jobs Act provisions, 2) global reform including the implementation of the global minimum tax (Pillar Two) outside the United States and the disruption following the administration’s denouncement of the OECD’s global tax deal, 3) ongoing regulatory change including guidance under the Inflation Reduction Act, Corporate Alternative Minimum Tax, and any tariffs imposed.
How are you aligning your services to support middle-market growth?
The middle market remains a top priority for us. While we work extensively with large multinationals and public companies, we’ve also made a concerted effort to grow our presence in the middle-market space. We’ve built a dedicated Private Markets Group with teams focused specifically on serving middle-market clients across audit, tax, and advisory services. It’s an area where we see continued growth, and we’re investing accordingly.
Are there any specific growth opportunities you foresee for your firm or the market more broadly?
The continued integration of AI presents a huge opportunity. Initially, there was a lot of hype around AI, but now we’re seeing expectations normalize and focus shift to real-world applications. I believe AI is still largely untapped in our profession. Embracing it is crucial for firms that want to gain a competitive edge and deliver more value to clients. We’re training our teams on how to use AI effectively and securely so we can continue to enhance our services.
Many firms are reevaluating how they manage internal processes. We’re seeing an increase in managed services — companies outsourcing parts of their operations to gain efficiencies. Technology has really enabled this shift, allowing firms like ours to deliver services more effectively. It’s definitely a growing area.
Every time I reflect on the potential of AI, I’m amazed. It’s still so underestimated in terms of the long-term value it will bring.
What is your take on increased consolidation in accounting and advisory, and how do you see it shaping the landscape?
We’ve made some strategic acquisitions ourselves, but what we’re seeing now is more regional firms merging or bringing in private equity investors. I think it’ll take time to understand how all these transactions play out. The primary driver is the capital required for technology investment. Smaller firms may struggle to make those investments independently, so we’ll likely continue to see consolidation, particularly among midtier and regional firms. I don’t expect this to impact the Big Four as much, but elsewhere in the market, it’s a trend that’s likely to continue.
How is KPMG addressing labor supply and ensuring it continues to attract and retain top talent?
Talent is always a top priority for us. We’re committed to supporting our people’s careers and helping them reach their goals. While there’s been a noticeable decline in the number of students entering the accounting field, we’ve maintained our recruiting pipeline. That said, we’re aware that many firms are struggling to fill positions because of the smaller talent pool.
There’s an ongoing conversation about changing the CPA licensure path — allowing students to meet requirements through a combination of education and two years of experience instead of the traditional 150-credit rule. Some states have passed similar reforms, and others are actively exploring them. This could help attract more students into the profession.
In the meantime, we continue nurturing strong relationships with our key universities. We’re regularly on campus, hosting presentations, and collaborating with professors to expose students to public accounting early and build interest in the field.
Are there any other key trends you’re seeing in outsourcing?
Outsourcing remains a major trend. Many companies are reassessing how to execute key functions more efficiently. We’re seeing interest in managed services, co-sourcing models, and other structures that allow businesses to leverage our technology and processes. The ability to do things more efficiently and at a lower cost is attractive, and it’s all being driven by advancements in technology.
What community involvement efforts is your firm involved in?
Community involvement is one of our core values. We’re proud to be part of San Antonio, which is one of the most generous communities I’ve ever experienced. We give back not just financially, but also through our time.
Throughout the year, we host several initiatives — drives, fundraisers, and educational programs — all aimed at supporting those in need. One of our biggest efforts is our annual Community Impact Day. On that day, everyone in the office participates in local volunteer work, whether that’s park cleanups, assembling school supplies, or supporting the San Antonio Food Bank.
We’re also deeply involved in causes that support the military community, like Wreaths Across America. Personally, I serve on the boards of the Witte Museum, the San Antonio Area Foundation, and Junior Achievement of South Texas. Financial literacy is something I’m passionate about, and Junior Achievement works hard to educate middle and high school students to set them up for long-term success.
What is your outlook for the next few years, and what are your top priorities for the firm?
Our top priority remains delivering exceptional service to our clients. That’s always No. 1. But beyond that, we’re focused on growing responsibly: expanding our reach in the market while continuing to invest in technology to stay ahead of the curve.
We’re also focused on the workforce, making sure we’re supporting the next generation of professionals and building interest in the accounting field. It’s a fast-evolving landscape, but we’re committed to maintaining the momentum we’ve built and continuing to innovate in everything we do.
For more information, visit:
