1. Extreme competition
Chemical companies face increasing competition. To survive in this highly competitive environment, chemical companies need to streamline their business, research and production processes and ensure that they are up to date on the technological and digital trends that their customers are continuously embracing.
2. Digitalization
Some chemical companies are struggling to adapt to the increasingly hyper-connected world fully but those who embrace new technologies head-on and change their practices accordingly are those who are most likely to thrive. Adapting to new technologies and digital trends will give chemical companies new distribution channels and business opportunities and will allow them to connect with a greater number of people and other businesses.
3. Cloud computing
According to multinational software corporation SAP, SaaS software revenues reached $106 billion in 2016, an increase of more than 20% from 2015. More chemical companies and suppliers are moving to SaaS cloud delivery models in order to enable smoother day-to-day operations, reduce operational costs and increase the company’s overall agility and ability to be competitive.
4. Increased customer engagement
Customers are more involved with the purchasing process now than ever and demand more information both before making a purchase and after making a purchase. Chemical companies must become more interactive to retain customers and build customer loyalty. This goes beyond basic social media outreach and maintaining a website: companies must now strive to keep customers informed and be able to provide them with advice, research and input on demand. They need to consistently show their industry expertise to build their customers’ trust and retain them over the long term.
5. Regulatory changes
Increasing and rapid regulatory changes across the globe can act as a hindrance to chemical companies who must ensure that their practices and products are in line with these regulations. American regulations are expected to change under the Trump Administration, which has stated its intentions to reduce regulations on businesses. America will have a significant impact on the chemical industry if the Trump Administration goes through with its intended plans regarding NAFTA and free trade.
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