As we begin a new year, the challenges and complexities that chemical companies face will continue to shape the future of the industry. It’s important for companies to be forward-thinking in identifying the issues that may impact their business in 2020 in order to stay ahead of tough challenges — and their competitors — while identifying opportunities and solutions.
Here’s a closer look at some of the expectations for the chemical industry this year and how companies can start preparing:
China’s chemical industry will remain a powerhouse
China’s previous growth rate of 8%-10% is predicted to drop to 6% by 2022, a slowdown which not only impacts the Chinese economy, but also other Asian countries that trade with China.
However, the slowdown still leaves China at a greater growth rate than the rest of the world. China is currently the world’s largest consumer of specialty chemicals, which are used in everything from detergents to food to technology.
Plastics and waste recycling will become even more important
Communities and establishments around the world are banning single-use plastics, a move which will create new challenges and opportunities for chemical companies. As the war on plastics continues to rage, recycling and finding greener practices will become top priorities. Chemical companies can join sustainability conversations by developing plastics that are easier to recycle, consume fewer resources, and are manufactured using greener forms of energy.
Customer expectations will increase
In the age of digital communication, customer preferences and expectations across industries are shifting to adapt. Today’s customers expect real-time updates, fast response times, and seamless experiences across devices.
Chemical companies will need to examine ways to improve their existing systems and practices to cater to the customer journey. According to a report by Deloitte, one trend that’s already gaining steam among chemical companies is the introduction of self-service web-based platforms to manage end-to-end customer interactions.
Companies will seek better ways for maintaining regulatory compliance
Compliance requirements and regulations continue to evolve in the chemical industry, and companies are continually facing new expectations. In response, businesses should examine new opportunities to better track industry changes and monitor compliance, particularly with digital technology and automation.
Turning to ERP to manage and improve chemical assets
Never has it been more critical for chemical companies to do more with their assets, which is why many companies are turning to the advantages of Sage X3. And since companies are having to adapt rapidly to changing regulations and customer expectations, it’s even more critical to find an ERP partner that can help them implement ERP technology, deliver a smooth deployment, and encourage widespread adoption of a new management tool.
NexTec is a leading provider of ERP implementation and deployment for chemical companies, offering a wealth of industry expertise that can help you get the most potential from your system and position your company for success in 2020. Contact us to learn more about Sage X3 chemical ERP and the results you can expect for your company.