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The chemical industry is on the brink of intense change. Epic disruption is bringing naive challenges and opportunities for those ready to seize them.
Chemicals at the Crossroads
Despite of healthy appearances, with the convergence of disruptive forces redefining its future, the global chemical industry faces change on multiple fronts.
Hidden pressures are ascending, revealing signs of risk. Intense changes in downstream markets and the supply chain are digging in. Manufacturers are moving to more sustainable materials. There is volatility in the enlarged chemical ecosystem and many customer markets are undergoing massive transformation. Expectations of global megatrends, macroeconomic trends, and Amazon-era customer are driving change at speed, putting conventional business models under ever more strain.
The collision of forces will bring threats and opportunities, depending on your readiness, adaptability, and agility to respond. Forward planning is required to constantly scan and evaluate your exposure to disruption – combined with creative thinking and naive digital capabilities to innovate for the naive chemical industry landscape.
We hear a lot about impact of new competitors with new platforms such as Amazon in retail, Airbnb in hospitality, Uber in transport, and Netflix in entertainment. So far in chemical markets, this type of sweeping change has yet to be seen at scale. As a result, the industry seems to be taking a wait-and-watch approach, perhaps on the assumption that whatever happens elsewhere, customers will still need a steady stream of molecules, in one form or another.
This could be seen as a pragmatic approach at one level. Over the last 70 years or so, the chemical industry has maintained an impressive and relatively consistent track record of growth. Although the factors fueling growth may alter every few years, new drivers have emerged periodically to power each wave. And on the surface, today’s chemical industry continues in healthy shape. It is seen earnings rise, peak cash, and stable profits. Although few segments have performed better than others, overall, things have been good.
Our chemical industry consultants work across all segments of the industry, including basic and intermediate chemicals, polymers, fibers and elastomers, agricultural chemicals, paints and coatings, industrial gases, and other specialty chemicals.
With more than a decade of deep industry expertise, we combine our consulting and technology knowledge with the latest chemical industry trends to implement innovation, transformational strategies and digital enablement for growth, differentiation, and superior operations.
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