Published on September 14, 2013
With mounting pressure to adapt to the ever changing times, the global chemical industry is faced with several challenges, leaving the industry hard-pressed to look for enhanced developmental strategies. The industry is affected by reliance on global GDP as well as global concerns. The industry’s dependence on global GDP leads to distinct behavior in rising economies. Europe is likely to see a declining market, whereas the United States has gradually stabilized its economy. The shale revolution in U.S. has brought about a drastic change in the supply-demand scenario. The supply base for the chemical industry has now moved to the West, whereas demand for chemicals comes largely from East and South, thereby forcing the industry to take a closer look at its development plans. In times of such radical changes, the global chemical industry should steel itself with plans that ensure development of their business even in the worst possible conditions.
The industry needs to adopt more efficient and effective business models which can function seamlessly even in cases of change, preventing the uncertainty and confusion caused by complicated structures and procedures. Effectual business tactics will also lead to a speedy decision-making process. An efficient business also eliminates any segment or unit that is not in line with the broader business plans. The chemical industry needs to take a closer look at emerging economies and their potential. Establishing a solid base in emerging markets will enable the industry to achieve greater growth and emerging customers’ support. Greater the diversity, greater the benefit!
Financial support is also extremely essential for the industry to absorb any shock. The industry has to have a strong financial basis, especially in the currently existing deplorable conditions. Innovation is the key to enhance development and sustained returns. The industry already has a strong R&D base. Emerging markets need to focus more on developing new products and processes, whereas as the key market players should continue their stride in research and development for sustained success.
These strategies when implemented with renewed vigor and focus will help the global chemical industry stand strong despite drastic changes. A successful business requires these strategies to be applied concurrently, however at different paces in different parts of the world. The industry players must act now or lose the opportunity to rise to the top.
