Question By: The chemical industry emerged strong from the economic crisis in 2020 and continued the rally in 2021. However, this journey isn’t without its challenges. Companies will need to face new barriers in addition to the existing ones. Here are five chemical industry challenges companies need to address to keep their growth momentum in 2022. Covid-19 has changed the outlook of the chemical industry and the way manufacturers operate in it. Specialty chemicals manufacturers may face several challenges post covid-19 such as raw material sourcing, price fluctuations, market liquidity, concern regarding workforce, reduction in productivity, decrease in consumption, revival period for end-use industries, difficulties with funding, government regulations regarding disposal, cost of production, among several others.
Raw Material Sourcing
Raw material procurement is one of the major challenges for specialty chemicals manufacturers post covid-19. The majority of the manufacturers operating in the specialty chemicals market were dependent on China for raw material procurement before the inception of the 2019 pandemic.
Price Fluctuations
Manufacturers operating in the specialty chemicals market are experiencing fluctuations in the price of raw materials. The disruption in the supply chains, shortage of raw materials, decrease in production, and increase in the sudden demand for products such as disinfectants, surfactants, personal protective equipment (PPE), medical supplies and specialty polymers have a significant impact on the price fluctuations of the raw materials.
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