The Outlook for the US Chemical Industry kpmg.com Chemicals and Performance Technologies
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Is the worst over? A cautious but growing consensus among economists and industry analysts suggests that after more than two years of turbulence, the global economy in general and the chemical industry, in particular, are
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Currently, the US produces 19 percent of the world’s chemicals, more than any single country.4 While this position may soon be usurped by China5, US chemical companies have already started to transform themselves into science and technology companies, placing them at the forefront of the response to emerging global mega trends such as climate change, resource scarcity and population growth. In particular, this transformation has focused on: • The increased use of research and new technology supporting an evolution from base chemical production to specialties • Rationalizations and other efforts to increase their competitive advantage, both domestically and abroad • Innovations to address a growing number of environmental regulations that include global protocols and legislative mandates in other countries Even these current efforts, however, will not be enough for the US chemical industry to stay ahead of strong, new competitors emerging on the horizon. Instead, US chemical companies are redefining their traditional role as chemical producers and literally reinventing themselves as the global industry’s leading science and technology companies for the 21st century.
Mike Shannon Global and US Sector Leader Chemicals and Performance Technologies
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American Chemistry Council (ACC): ‘Industry Operations Have Largely Returned to Normal,’ Chemical Week, June 22, 2010 Ibid. Ibid. ACC: ‘Industry Fact Sheet,’ June 2010 KPMG: ‘Issues