Chemical Industry
Due to the current global crisis caused by COVID-19, the chemical companies around the world, especially its workers are at high risk, and so actions need to be done to protect the people, the liquidity, and the operations.
One of these is implementing programs that are centered on processes, infrastructure, and management capabilities, which are needed for triage and response.
Another solution is to maintain engagement and communication with the people, to whom the companies can offer help.
Next, secure liquidity and expect for disruptions to take place in customer industries, value chains, and the worldwide financial system. Also, make significant investments a priority.
Lastly, analyze the risks and disruption of the supply chain, as well as holding inventory monitoring at the customer and producer level. Moreover, safety nets/redundancies need to be established to ensure continuous operation.
After the crisis, there is much work to do to rise from the economic downturn.
First of all, chemical companies need to achieve resilience. However, based on Accenture research, some of them might have a tough time obtaining it.
To do so, they have to keep the profit steady during the pandemic and strive growth once the crisis is over.
Additionally, in attaining resilience, focusing on investments in automation, analytics-based enhancement, remote operations, and their succeeding integration would greatly help. And in terms of support functions, companies like alcohol chemicals, petrochemicals, downstream, plastics, rubber, motor oil and petrol stations’s engine treatment should make use of their resources, refrain from doing future investments, and having variable costs through having partnership or co-sourcing agreements or creating a service model.
While COVID-19 brought many challenges to the chemical industry, it also let us prepare for the future with new business models and plans that will help the sector grow constantly.
Companies should observe short-term market and demand trends, consider online shopping and digital customer interaction, enhance business models, and search for acquisition opportunities.
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