The number of chemicals companies engaging in cross-border mergers and acquisitions is substantially higher than it is in other sectors, as the figure above shows. Thirty-three percent of chemicals CEOs have completed at least one such deal within the past 12 months and 46 percent plan to do so within the next 12 months.
Looking to Asia to lead the way
The chemicals industry is particularly strong in Asia and North America; 67 percent of chemicals CEOs head companies with operations in Asia and 59 percent head companies with operations in North America (compared with 42 percent and 36 percent, respectively, of the total survey sample). However, most chemicals CEOs, like their peers in other sectors, expect Asian operations to grow more than North American operations over the next 12 months; 84 percent anticipate doing more business in the former, while only 52 percent anticipate doing more business in the latter.
Innovation key to growth
Chemicals CEOs continue to invest in new product innovation. Sixty-five percent plan to increase their expenditure on R&D over the next three years, which is more than in any other sector except entertainment & media (at 74 percent). Indeed, 30 percent of chemicals CEOs plan to make ‘significant’ increases in the amount they invest.
Backing tomorrow’s leaders
Eighty-three percent of chemicals CEOs also plan to spend more on leadership and talent development over the next three years, and 30 percent of these CEOs intend to spend ‘significantly’ more.
Cost-cutting and infrastructure improvements planned
Cost-cutting and infrastructure improvements are high on the agenda of chemicals CEOs, too. Eighty-seven percent aim to invest more in cost-cutting initiatives over the next three years. Similarly, 76 percent aim to invest more in upgrading their strategic technological infrastructure in order to facilitate modern manufacturing and logistics processes.
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