Things are looking bright for the chemical manufacturing sector in 2017 and beyond. With questions swirling in 2016 about the impact of Brexit on global chemicals and specific challenges facing the industrial chemicals sector, key trends in the manufacturing sector are beginning to emerge.
Here’s what we’ll be seeing more of in 2017.
American Specialty Chemicals are Growing
Despite a weakness in exports and down-channel demand, the American chemical sector is growing at a strong clip for 2017. Why? American chemical manufacturers have easier access to relatively inexpensive feedstock and energy products which is leading to growth among basic chemical production volumes as well as specialty chemicals. There are still major questions for 2017 in regards to the American manufacturing sector as well as housing market, both of which are integral players in the chemical space. Specialty chemicals, particularly those for “quality of life” improving end-products such as tech and thermoset, are a growing market as well. Specialty chemical manufacturers are already seeing consolidation among their customer bases, benefitting longstanding specialty chemical buyer/seller relationships.
The Digitization of Chemicals
The Internet of Things is changing every industry, even chemicals. Manufacturers are increasingly under pressure both downstream and upstream to organize data, ordering logistics, and regulatory paperwork digitally. Additionally, product-level sensors on barrels and dispensing equipment are optimizing consumption and increasing safety. Forward-thinking chemical manufacturers are themselves adopting digital platforms and processes that both eliminate human error and streamline processes such as ordering, shipping, and even scalability.
Green and Sustainable Chemistry Gain Traction
Sustained commitment at a governmental and educational level towards sustainable, green initiatives is driving a surge in the “green chemicals” industry as a whole. Well over two thirds of chemical manufacturers now say they have a sustainability plan in place, and many are working on bio-alternatives to commonly-used chemical substances and substrates. It is predicted that the demand for green chemicals will significantly outpace the demand for traditional chemicals, particularly as the cost of fossil fuels rises. Look for advancements in sustainable chemistry to be most apparent in the cleaning, technology, and feedstock industries.
Noah Chemicals’ team of dedicated scientists, chemists, and logistics specialists stays on top of industry trends to ensure our customers are up-to-date on what’s important for their industry. At Noah Tech, we’re proud to be innovative.