According to the recent export import data, the chemical industry in the US has recorded an upward trend after a long hiatus. The positive trend in the chemical industry can be attributed to various factors such as the growth in the Asian economy, increase in usage of shale gas, easy availability of cheap feedstock, and rising number of M&As across the globe. The chemical industry in the US is largely responsible for the increase in the export volume for ethane, resulting in the growth of the overall industry. The US chemical industry is slowly recovering from the oil price fluctuations. The industry leaders have predicted a significant increase in exports for the US chemical market due to the commoditization of bulk chemicals and the surging demand for specialty chemicals. Much of the industry’s growth will be driven by the sub sectors such as agrochemicals, high-performance chemicals, and specialty chemicals along with low priced and abundant amounts of gas supplies.
Increasing Exports, Decreasing Imports – the US Chemical Industry
The US chemical industry is reducing its import volume by increasing domestic production capacity; thereby, becoming self-reliant and focusing on the production of export worthy commodities. The favorable policies for domestic production and manufacturing under the Trump administration, help the chemical industry to achieve self-sufficiency and predict healthy earnings for differentiated and specialty chemical producers. From a procurement perspective, the increase in domestic production will result in a rise in market entry opportunities. By developing the domestic production capacity, the US can drive export revenue and re-establish itself as one of the major players in the chemical market across the globe.
What’s Transforming the Global Chemical Industry?
The chemical manufacturing companies must adopt these trends to strengthen their market position and increase their market position globally. Trends such as evolving regulatory landscape, mergers and acquisitions, digital transformation, and an increase in investments are transforming the global chemical and petroleum industry landscape. These trends have positively impacted every business process and activity right from production, compliance, and operations. The growth in demand and the sudden surge in the market competition has coerced the chemical manufacturers to adopt advanced technology, thereby streamlining process efficiencies, minimizing costs, and improving product quality.