What will be the most important changes in the chemical industry resulting from the current demand crisis?
Significant changes are normal in the chemical industry. Currently, however, the industry faces a phenomenon in which different “layers” of change drivers are occurring simultaneously. Long-term megatrends (such as the migration of value and capacity to the global centers of growth and also to the areas of advantaged feedstock, changes in cross-regional trade flows, and new business opportunities for chemical companies in the area of energy efficiency) constitute one such driver. Another is a very significant reduction in demand in many of the chemical industry’s end companies. In several segments of the industry, the effects of diminished demand are worsened by existing overcapacity. To win against competitors in the downturn, chemical companies must both mitigate the impact of decreased demand on cash flow and prepare for new future realities, as the crisis will lead to important and permanent changes in demand as well as changes in end industries. What should be the current prioriti
