After a turbulent start to the year, the US chemical industry looks forward to a promising second half. However, there are some concerns. First, US chemical makers are experiencing a severe slump in sales. According to the Dow Chemical Company's second quarter report, chemical sales dropped by more than 20%. This was due to the COVID-19 pandemic, which slowed economic activity and prompted firms to reduce costs. Dow, one of the largest chemical companies in the world, has already reduced its workforce by 6%. The company expects to save $300 million annually by 2021. Moreover, Dow is closing some of its US facilities. These include solvent plants, small polyurethane plants, and coatings reactors.
The chemical industry is vital to modern life. From cleaning and agricultural chemicals to pharmaceuticals and adhesives, the industry produces millions of products each year. This makes it an enormous and powerful industry to deal with. But it can also be daunting if you are new to the business world. Fortunately, there are several resources that can help you navigate the US chemical supply chain.
A US chemical supplier can help your company get a competitive edge over your competitors by providing the most cost-effective products and services. By offering the lowest cost to serve, the company can ensure that its customers get quality products at the lowest possible price. A US chemical supplier will also listen to the needs of its distributor partners and develop new products and product enhancements to meet their needs. This can even include private label products for companies looking to avoid high costs.
The first half of this year was tough for US chemical suppliers. The COVID-19 pandemic crushed oil exploration in the first half of 2018. Meanwhile, the Ecolab-Apergy merger was completed in the second half of 2018. Its former Nalco Champion business has now become ChampionX, and all of its chemical sales come from this company. However, the company has also been in trouble with the state of Alabama due to illegal discharges of fluorochemicals into the Tennessee River. As a result, the company has entered into a consent order to conduct toxicology testing.
In the near future, the US chemical industry looks poised to become the world's leading supplier of feedstocks and energy. The reduced costs of raw materials and energy may spur U.S. manufacturers to reverse their offshore operations and use US chemical suppliers to meet their needs. It's important to make sure that your suppliers are able to provide you with the highest quality raw materials and the lowest costs.
Dupont, for example, manufactures resins and adhesives used in 3D printing and assembly. Air Products, meanwhile, is a leading maker of industrial gases. The company also makes on-site cryogenic oxygen and nitrogen plants to meet the needs of large users.
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