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THE RIGHT CHEMISTRY FOR RESILIENCE

Managing cyclicality with competitive agility

OVERVIEW

VOLATILITY TO VALUE

With volatile customer demand, fluctuating raw material prices and a high-asset intensity, the chemical industry is affected more than most by economic cyclicality. Accenture Strategy analysis shows that chemical companies have experienced periods where revenues increased by 5 to 7 percent while their overall margin growth was only in the range of 1 to 2 percent—placing them firmly in survive, rather than thrive, mode. Creating competitive agility demands more dramatic changes in strategy and operations—and employing digital technologies can help find new sources of value to drive growth.

READ THE REPORT [PDF]
Chemical companies have experienced periods where revenues increased by 5% to 7%. While their overall margin growth was only in the region of 1% to 2%

KEY FINDINGS

RESILIENT-READY

New technologies and operating models are enabling new sources of competitive advantage and growth. But for the chemical industry, change is gradual. Operational behaviors, mind-sets and ways of working are deeply entrenched.

The technologies to drive resilience are available, but demand a break with established ways of working and fundamental changes in organizations.

RECOMMENDATIONS

ROTATE TO THE NEW — Steps to regain competitive agility:


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