A storm that involves increasing attention of customer on plastic waste, transforming manufacturing and novel digital technologies impends to interrupt the run of chemical companies for long profitability.
Rapid growth cycles are fueled by the developing economies are slowing as these disrupting changes are starting to intensify. For instance, after several years of campaigns to finish the pollution, people are entering in the new period where the next movement of environmental safeguard and customer activism will need new business models.
The single-use of plastics is banned by the European Union and has a goal for all the plastics to be reusable or recyclable in the coming years. Same measures are already present in various U.S. states. Both the cases will help increase the “circular economy” substituting the ‘take-make-dispose’ model with scheming for continuously recycling and reusing materials.
The most noticeable instance in the chemical industry is the change from disposable to durable plastics like the water bottles being carried in the backpacks. The primary analysis projects greater than 65% of polymer reduction from this trend.
Actually, recycling of plastics can associate to more than 80 Mn metric tons are vanished yearly in the conventional capacity. This is equivalent to greater than 165 world-scale polymer plants, demonstrating the severe challenge for the industry.
The developing trends of localization and mass communication like Adidas speed factory in Atlanta, where technologies and automation have cut the time to command a custom-fit shoe from several months to weeks. As shoes are fundamentally comprised of chemicals, where chemical companies must be lighter in supplying consumers who may be situated in many places down the street, against in one place on another side of the globe.
The reuse of plastics increases and downstream claim moves, the trend of shifting from volume to value will increase. The chemical companies that provide specialty and products of high-performance or redevelop new uses for plastics like whirling them into fuel with heat and other procedures to increase the most.
The American Chemistry Council predicts that developed technologies that transform used plastics into a new range of products involving fuel can create greater than 40,000 jobs in the United States.
Digital technologies will be used by the winners to redevelop themselves. As per the current research, digitization can add more than USD 560 Bn of value to chemical firms in the coming years.
Total 50% of chemical companies are using digital technologies to surge the efficiency and more than 40% are spreading digital technologies extending from data analytics to artificial intelligence in fueling the growth.
Agribusiness is the best examples, where makers of pesticides and fertilizers applying climate software, drones and other technologies to create new demand. Improved crop yields signify advantages for farmers that can recognize plant disease using drone cameras.
The chemical companies boost the new demand for governing the lifecycle of a molecule and permitting the downstream circularity, substituting the take-make-dispose cycle with the continuous recycling and reuse. This involves establishing new models of business such as renting instead of selling molecules.
Chemical companies will not ever be weather-proof in contrast to the storms of disruption. But by redeveloping their businesses, accomplish their motive for profitability and growth and prove their capability to epic disruption of meteorological conditions.