Top 3 Challenges in the Chemical and Material Industry
What do your peers think about Chemical and Material Industry?
After surveying Chemical and Material Industry professionals, we found out that their main challenges are the fact of suffering from strict regulations, changing prices complicating operations and the difficulty to find skilled workers for their companies.
Chemical and Material Top 3 peer challenges
Prices and Costs
The fluctuations and increase in raw material prices create challenges in the production to remain competitive. This most certainly keeps the market quite inaccessible to new entrants as economies of scale achieved by companies with large production lines give them a nearly unbeatable competitive advantage.
Regulations and Legislation
Difficult to keep up with changing regulations regarding the production of chemicals that are potentially harmful for the environment. As new research are being published every day, the danger of certain kinds of chemicals can be unveil unexpectedly. This could lead a company’s business to suffer from bad press and possibly, to become impossible due to stricter laws.
Hiring Skilled workforce
The global chemical industry is facing issues in finding workforce, since old employees are retiring and substitutes lack specific skills. Although talented researchers are still graduating from school every year, people are not interested in working in the more “labour” part of this sector.
- Lack of transparency in the market, e.g. origin of raw materials
- Increased Competition
- Economic instability
- Raw material shortage
Research-based trends and short-term forecast
Research says that the industry is being challenged by business environment related issues, such as, consolidation, greater investor power, and accelerated globalization (Deloitte).
62% of global oil production will be onshore oil production, and the most expensive oil production 2% in 2030. In 2020, the United States’ oil production will be 453 million tonnes, and in 2030 Russia and Saudi Arabia will even then produce 12% and 10% of the World’s oil production (University of Maryland).
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