Factors Driving Accelerated Growth Over The Next 5-10 Years
According to the Boston Consulting Group (BCG) the growth rate of the North American chemical industry will accelerate over the next five to ten years due to a mixture of factors. The report says, “By the end of this period, the U.S. - representing more than 80 percent of the North American chemical market - will be a larger net exporter of chemicals than it is today. Demand for the North American chemical industry’s products will grow at a compound annual rate of 3.7 percent through 2020, outpacing the growth of the overall economy and driving sales to more than $1.2 trillion by 2020.”
A factor contributing to this growth is a major rebalancing of supply and demand. For example, the chemical industry will benefit from the revitalization of manufacturing industries in the U.S. (partially attributed to the low cost of energy) increasing by $10B to $21B. In this fast-paced growth environment, companies must adapt quickly to maximize their competitive advantages and seize new opportunities.
The report titled, “North American Chemicals 2020: Capturing Opportunities in the Revitalized Industry” suggests several actions North American chemical companies must do to be successful. Best-in-class chemical companies will have the ability to anticipate and forecast demand, while understanding and preparing for key issues, such as:
Surge of low-cost natural gas supply
Support of US manufacturing companies returning to the US
New investments in production equipment for increasing capacity
Rebalancing supply & demand’s affect on product offerings
Expansion into other markets
Being innovative in the marketplace
Response to varying supply and demand
Will you be ready?
First - You will need to gain visibility into your supply chain processes from raw materials to end customers to better understand what is going on within your enterprise.
Second - You need to collect data from all processes and transactions, and then analyze this data to gain insights into the entire value chain.
Elemica believes data is the currency companies use to win the market. This resource, the currency of information, is acquired through a business network and spent to enable rapid responses to real-time market events.
With a Business Network and a “What’s in it for WE?” culture, chemical companies drive better bottom line results – achieved through reduced cost of operations, faster process execution, automation of key business processes, removal of transactional barriers, and seamless information flow between customer, suppliers and logistics providers. By replacing manual and complex approaches with efficient and reliable ones, supply chains are transformed.