A new report by Deloitte Touche Tohmatsu Ltd., The chemical multiverse: Preparing for quantum changes in the global chemical industry, reveals actionable ways that chemical companies can leverage cultural and market changes in their product lines in order to capitalize on the future needs of the marketplace.
These cultural and market changes, called “megatrends,” present tremendous opportunities for chemical companies. Current megatrends identified in the report include demographic change, quality health care, new patterns of mobility, convergence of technologies, globalization, new patterns of consumption, resource scarcity (energy, water, and food), climate change/green, and urbanization.
“Companies focused on pursuing megatrends will generate growth in new markets, therefore triggering unprecedented shifts in the industry,” says Tim Hanley, Deloitte Touche Tohmatsu Ltd. Global Chemical industry group leader.
The report includes a performance analysis of 228 chemical companies, charted over a 12-year time span. The success stories culled from the study consistently involved companies that made structural changes, managed their portfolios with discipline, understood and concentrated on their business models, and continued to innovate and grow.
“Chemical companies that acknowledge their current position and adopt flexible strategic approaches to a variety of scenarios stand the best chance of successfully reshaping the industry over the next decade,” says Hanley. “If new strategies and solutions are employed, the chemical industry could very well be characterized in 2020 as one that is largely self-funded, has profitable and globally balanced supply, and lives by the survival of the fittest.”
To access the report, visit: www.deloitte.com/manufacturing.