The chemical industry plays an important role in the economic development of a country, affecting the agriculture, medicine, polymer additives and other industries. Without a stable supply of chemicals, commercial activities and company operations using them as raw materials will encounter obstacles. Unfortunately, it is impossible for the chemical industry to be undisturbed. There are many factors contributing to this. However, companies can take appropriate management measures to prepare for these challenges as soon as possible, so as to reduce supply chain risk.
Explore key chemical industry trends
The first step for chemical companies to deal with supply chain risks is to understand key current and future trends. There are many types of studies in the market to predict possible market trends in the chemical industry. Companies should be aware of these trends and adjust their supply management strategies to avoid problems in the immediate purchasing process.
In 2019, the chemical industry has responded well to consumer demand, price fluctuations, fierce competition and regulatory barriers, and is seeking sustainability. By 2020, the outlook for the industry will be similar, as chemical companies will continue to struggle with tight trade, slower sales and tighter chemical regulation. This means that relying on chemical distributors cannot solve the procurement problem unless enterprises take additional measures to establish a seamless supply chain.
Expected trend of chemical industry in 2020
The uncertainty of the chemical industry is expected to continue until 2020, with the continuous fluctuation of oil and gas prices, which will affect the company's transportation costs, manufacturing costs and operating costs. When the energy market is interrupted, enterprises often need to spend more money to purchase the necessary raw materials. Therefore, due to the rising prices of primary products, enterprises will continue to face severe profit pressure. However, chemical suppliers will continue to play an important role in the trade and supply of commercial products, which may help overcome pricing problems.
The slowdown in the US, China, India and other major economies is real. The continuous trade protectionism policy between China and the United States has inhibited the growth and consumer demand, and affected the stable supply chain. In addition, there are political turbulence, fundamental changes in laws and regulations caused by environmental problems, and other industry problems caused by interference.
The pace of technology adoption in the chemical industry will continue to accelerate. More companies will invest in research, development and technology to improve service and product quality. In the next year, with the development of circular economy, the demand for environmental protection chemicals and sustainability will increase.
India's position as a new chemical center
Indian chemical companies will continue to benefit from plant closures in China and the European Union. Although Indian companies are small, they are stepping up efforts to improve the output and quality of products produced in India. Even these companies began to take India's chemical trade seriously, contacting Indian chemical suppliers to buy products.
Experts in the chemical industry predict that the results in 2020 will be mixed, and some problems in the previous year will continue to exist. However, driven by capital investment and active government policies, India's chemical industry will grow.
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