Technological disruptions in the chemical industry can give rise to both challenges and opportunities. But thanks to technology, the speed of manufacture and processing of substances in the industry has skyrocketed in the past couple of years. In order to benefit from the growth, chemical manufacturers should be ready to incorporate a new mindset and a strategic shift from the current operations. For long the profitability in the chemical industry has swung like a pendulum from good to bad times. However, with digitization and technological advancements, it is expected that chemical manufacturers will be able to gain better profitability, smarter portfolio management, and value capture.
Chemical Industry Trends
The rapidly changing market conditions call for players in the chemical industry to re-invent their traditional practices and do away with obsolete business models. For this, chemical industry companies must identify and keep a close watch on their competitors in the market. Companies in this industry also need to reconsider their market offering based on the existing demand and profitability in a particular market. This will help them to cut down on losses in the long run.
Focus on emerging markets
Until now, only a few top players in the chemical industry were dominating a more significant part of the market share. But gradually there is a visible trend of more number of players entering this market. Therefore, it has become essential for chemical manufacturers to cater to specific needs of customers in different emerging markets to withstand the cut-throat competition.
Internet of Things(IoT)
Some of the big players in the chemical industry were quick to adopt IoT into their business, but many smaller players in the industry are still not aware of it. How is IoT beneficial in the industry? This technology enables connectivity between equipment and smart devices, allowing manufacturers to track performance gaps in real-time. Given the rate of rising competition, it is high time that chemical manufacturers switch to such smart business to optimize their production systems.
Though technology is a boon to the industry, it also has several drawbacks like making the company vulnerable to threats from trespassers. Therefore, chemical manufacturers need to provide training and guidance to their technical experts and plant operators about the emerging risks and measures to overcome them.