Questions and answers in the adhesives sealants industry.
Question: As a raw material supplier to the adhesives industry, we are concerned with our weak knowledge of the industry. We don’t know enough to adequately forecast our business or, more importantly, to direct our product-development efforts. Is this a common problem faced by suppliers, and how can we become better informed?
Answer: As you find yourself further upstream in the value chain, industry knowledge is often less than for those closer to the ultimate consumer. However, some suppliers have very successfully improved their industry position through development of a systematic business strategy to become more focused in the industry. Some of the “best in class” suppliers have participated strongly in industry trade organizations, developed solid databases of key industry information, and otherwise assigned key resources to develop this information and act on it. Certainly, this can be a significant investment, but in such a specialized industry, those suppliers that have made these investments position themselves to excel and prosper with above-average profitability.