Chemical companies’ attention has shifted from demand issues to more sustainable practices in an effort to address rising production and transportation costs, greater demand to reduce carbon footprint, diminished profitability, and the push to develop more recyclable products.
The U.S. chemical industry is undergoing a profound transformation in 2023, embarking on a journey of portfolio refinement, supply chain optimization, and groundbreaking material innovation. This transformative shift is fueled by a resounding call for circularity, decarbonization, and sustainability, marking a pivotal moment in the industry’s history. It represents a significant reset, as companies reassess their material utilization practices aligning with evolving customer demands, encompassing not only the products they offer but also the diverse pathways and feedstock choices they embrace.
The disruption experienced over the past three years has underscored the importance of localizing supply chains and striking a balance between efficiency and resilience. The path forward could initiate a shift away from large-scale, global production toward sustainable, resilient, and increasingly regional production approaches.