As the $2 trillion global chemicals industry continues to face demanding conditions as it attempts to recuperate from its worst year ever in 2009. The tumble in demand appears to have bottomed out, but the damage has been done. Demand is on the rise, but in extremely depressed levels — in some circumstances, declining by 40 percent. Most new growth is in Asia; Middle East producers continue to enjoy competitive advantages, while many assets in North America and Europe are severely impaired.
Added, the economic entanglement has precipitated trends already evident in the industry. In petro and basic chemicals, for example, there is far too much capacity to support viable margins. Making matters worse, new supply from cost-advantaged organizations around the world continues to come online, while global demand remains weak. The obvious response would be to initiate consolidation and dramatic cuts in capacity – but so far, North American and European chemicals producers have only made modest attempts to do just that. We expect that only those companies that know where they can win will be able to take a leadership position and ruthlessly push restructuring across the entire industry.
So, as operating models are in significant state of constant change, chemical organizations need to challenge themselves what their bona fide commercial and operational goals are, and how they can actualize a solid position in the industry for the 21th century.
Conveying on a deep apprehension of industry dynamics, extensive experience along the entire chemical value chain, and broad functional capabilities, Reinvent Rebuild delivers comprehensive support to the chemical industry. Our capabilities are equally effective in delivering lasting results in North America, Asia, the Middle East, and Africa. Brainstorming together with clients, we assist with strategy advancement and implementation such as growth strategies, transaction support, operational excellence, efficiency enhancement, restructuring, and innovation management