As a vital industrial link between a turbulent oil and gas market and changing consumer needs, the chemical industry has been tested by the COVID-19 pandemic. According to William Blair, global demand for chemicals is experiencing severe shocks across end markets, global supply chains are disrupted, stock prices of chemical companies have taken unprecedented hits, and the competitive order of chemicals producers in the U.S., Middle East, China, and Europe has changed virtually overnight.
Companies serving highly cyclical end markets are experiencing significant decreases in demand due to global economic uncertainty and volatility in capital markets. These challenged end markets include automotive, residential and commercial real estate, discretionary consumer goods, building products and construction, and aerospace.