CAB POSTS A 0.3% DECLINE IN JANUARY, ACC SAYS

chemeng online | January 23, 2019

The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com), posted a 0.3 percent decline in January on a three-month moving average (3MMA) basis. This marks the barometer’s third consecutive month-over-month drop and suggests a slower rate of U.S. economic growth. On a year-over-year (Y/Y) basis, the barometer is up 0.8 percent (3MMA), a pronounced slowdown in the pace of growth as compared with late last year. The unadjusted measure of the CAB was flat (0.0 percent) in January and declined 0.2 percent in December and 0.8 percent in November. The Chemical Activity Barometer has four primary components, each consisting of a variety of indicators: 1) production; 2) equity prices; 3) product prices; and 4) inventories and other indicators.

Spotlight

Competitive pressure within the chemical industry is driving a move toward specialized chemical products that differentiate the organization from competitors in the bulk chemicals arena. Bulk chemicals are commodities that produce significant revenues, but specialized chemicals particularly those protected with patents are higher margin products and thus highly desirable products that can add significant value the organization’s raw material. Specialized chemical products have a market lifecycle, similar to any other product. Profit margins can be mapped against time as the product rises in popularity and use, then falls out of favour when it is replaced by other solutions.

Spotlight

Competitive pressure within the chemical industry is driving a move toward specialized chemical products that differentiate the organization from competitors in the bulk chemicals arena. Bulk chemicals are commodities that produce significant revenues, but specialized chemicals particularly those protected with patents are higher margin products and thus highly desirable products that can add significant value the organization’s raw material. Specialized chemical products have a market lifecycle, similar to any other product. Profit margins can be mapped against time as the product rises in popularity and use, then falls out of favour when it is replaced by other solutions.

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