KPMG Global Energy Institute is pleased to announce the launch of the twenty-fourth edition of Reaction Magazine, KPMG’s signature publication for the chemicals and performance technologies industry, which you can download here.
This edition explores geopolitical trends and their impact on global chemical companies, synergies within the industrial gases market, an outlook for the U.S. chemicals industry, and a look at innovation with AkzoNobel.
Adapting to a changing geopolitical landscape
Geopolitical uncertainty is on the rise. Volatile oil and gas prices, shifting alliances in the Middle East, shocks to the European Union (EU) such as Brexit, the expansion of China, the Trump administration in the United States and the rise of nationalism and opposition to free trade—all these developments and more are increasing stress levels across the business world. Traditionally, the chemical industry has been more reactive than proactive about dealing with geopolitical disruptions. However, chemical companies would do well to consider appointing a Chief Geopolitical Officer (CGO) to help them address uncertainties in an increasingly turbulent world. Please click here to read more.
Synergies sought in M&A by industrial gas players
Major industrial gas manufacturers have recently been focused on optimizing and strengthening their positions in core markets, both geographically and by business unit. M&A activity in the sector has reflected this and has been aiming at driving synergies to leverage innovation and technology, improve service, reduce distribution costs, increase efficiency, and allow greater access to core markets, as well as divest any noncore businesses. This is a familiar trend that has been seen across the chemical industry. Please click here to read more.
Despite uncertainty, optimism for U.S. chemical companies
Uncertainty is the only certainty for today’s U.S. chemical industry. A new administration in Washington, DC, is attempting to loosen regulations, change tax laws, and adopt new federal policies designed to promote business growth. At the same time, this administration has suggested that increased tariffs and a renegotiation of international trade agreements would benefit the U.S. economy, even though trade barriers might curtail export/import growth in U.S. chemicals. Nevertheless, the U.S. chemical industry remains greatly favored by low feedstock and energy prices, a strong domestic economy and a business-friendly government agenda, all of which justify continued optimism about industry revenues and growth. Please click here to read more.
A unique approach to innovation with AkzoNobel
In January of 2017, AkzoNobel launched Imagine Chemistry, a strategic initiative developed in conjunction with KPMG to help solve real-life chemistry-related challenges.66 A start-up challenge for the global chemical industry is at the heart of this initiative. This year’s response has been outstanding, with hundreds of ideas submitted by numerous start-ups along with scientists, research groups, and students. In June, the finalists were announced. Each one will work closely with AkzoNobel in a unique approach to innovation based on openness, shared intellectual property (IP), and a highly collaborative process for effective development.
Please click here to read more.
To register for KPMG’s Global Chemicals Institute enabling you to automatically receive future editions of Reaction, as well as invitations to upcoming chemical industry Webcasts, please click here.