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Petrochemicals markets complexity is only going to grow and grow

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NICE WORK, if you get can get it. A trucking company in Fort Worth, Texas, is offering to pay experienced drivers $14,000 a week – $728,000 a year – as the US struggles with a nationwide shortage of truckers or lorry drivers.
This reminds me of perhaps an apocryphal tale, from the height of the last Australian mining boom. Before iron ore prices collapsed in late 2014, there was a story about workers at mining site road junctions who operated manual “Stop and Go” signs. They were said to be earning more than Australian dollar (A$) 200,000 a year.

Before you pack in your job as, say, a petrochemicals sales manager and head to Texas or mine sites in Western Australia, there is the risk that when you arrive at the door of your new prospective employer, the bubble might have already burst. This is assuming we are in bubble conditions.The pressure is clearly building in petrochemicals and other commodity markets as prices in some regions remain at record highs or continue to rise.

Today’s prices are the results of shortages of commodities supply (for example in petrochemicals, an outcome of the US winter storms), very strong demand and supply chain disruptions.I am beginning to believe that the latter is the biggest reason for commodity price inflation which is feeding through into sharp rises in the cost of finished goods – and a lack of goods availability.

It is delivering and manufacturing enough stuff that seems to be at the heart of today’s problems due to shortages of everything from container freight space and semiconductors to wooden pallets, tin cans, metal drums, cardboard – and US truck drivers.

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The Digital Transformation of the Chemical Industry: The Key Trends

Article | July 13, 2021

From novel process technologies to sustainable plastics— the chemical industry is scaling up its digital initiatives. This has opened new doors for organizations to explore opportunities to increase efficiency and streamline the process. Admittedly, the chemical industry has been a little slower in implementing digital transformation. But COVID-19 has vastly increased the momentum of digitization among chemical plants. According to a KPMG survey, 96% of industry CEOs saw digital transformation accelerate in their organizations, with 48 percent saying it advanced by a few years. In addition, according to a recent Manufacturing Leadership Council (MLC) survey, 82% of respondents agreed that the pandemic had "created a new sense of urgency" in driving investment in new technologies and digitalization. Digital transformation solutions offer tremendous potential in the chemical sector. It can play a significant role in driving more value. So let's dig deeper and look at key technologies in bringing digital transformation to the chemical industry. Circular Economy Chemical manufacturers cannot exist within their own four walls any longer. They recognize the importance of working with their customers and other businesses and organizations to conserve resources and protect the environment. Chemical companies may source raw materials from recyclers as part of a circular economy, which necessitates fool proof solutions to confirm their quality and availability. Circular economy consortiums may advocate for reducing environmental threats such as ocean plastics or exposure to hazardous chemicals, opening up new avenues for innovation. Customers are constantly looking for new ways to reduce waste and protect their ecosystems. For example, farmers may benefit from solutions that can instantly analyze soil quality, weather, and crops to determine the best products and schedule for applying fertilizers, crop protectants, or new seeds. Using this data, they use only what they need, generate less waste, and maximize output. Error-Proof Operations Chemical firms are also embracing technology to achieve operational excellence. They've discovered the benefits of using machine learning andIoT technologies to automate standard back-end processes. Technologies such as these reduce the need for human intervention — and thus the possibility of human error. Blockchain technology can also significantly reduce counterfeit chemicals' use, which is especially important for chemical manufacturers who supply products to the pharmaceutical or agricultural industries. In addition, blockchain technology can enable track-and-trace processes that require less work and waste while protecting the enterprise's reputation. Staying Sharp in the Dynamic Market Staying agile in an uncertain M&A environment is a top priority for some businesses. For example, chemical firms must be able to quickly divest assets, adjust portfolios, and adapt operations in response to market changes. Technology can provide executives with the visibility into operations, shipments, and market conditions required to make critical decisions and remain agile. Data Analytics The chemical industry is leveraging cloud-based storage systems to store and share confidential data anytime and anywhere. Additionally, data analytics solutions can analyze all the data effectively to provide valuable insights to the industry. This will help you make meaningful decisions in real-time.