Sustainable Complexity – Or How to Win in a Volatile Market Environment

09/20/2010

Marked Improvement - Economic times are changing for the better, markets have returned to life: Chemical demand is outperforming recovery of the global economy following last year's drop in demand and de-stocking of supply chains. The recently conducted top management panel "Chemical Customer Connectivity Index" (C3X) of the management consultancy A.T. Kearney, CHEManager Europe and the Westfälische Wilhelms-Universität Münster confirms these latest market observations.

The survey showed that 85% of all participating chemical suppliers said demand for their products grew significantly within the last 12 months - for more than every fourth supplier by more than 30%. Prices for chemicals as well have exhibited a clear increase. In addition, 80% of the chemical suppliers reported an increase in production capacity utilization of up to 30% to cope with the demand increase.

Hopes for a brighter future are backed by demand prospects: The vast majority of both chemical suppliers and their customers expect demand for their products to further grow over the next 12 months - and reinforce the cautiously positive trend that began to show last autumn when the crisis was abating. Finally, also raw material prices are expected to benefit from the upward trend....
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