Chemicals snapshot: Recession, reaction – rebound
For nearly two years, economists have been predicting that the U.S. economy would slip into recession. In line with other sectors, the chemicals industry is braced for what could be a tough year. M&A market outlook remains subdued and companies will place more emphasis on performance improvement and operational efficiencies.
With chemicals businesses so dependent on activity and demand in other sectors, a general slowdown spells a similar story for the industry - recession has arrived. Sales growth has been negative for three quarters, earnings have evaporated, and companies are warning of more difficulty ahead. In this briefing paper we look at the reasons why revenues and prices are down. We also discuss the implications for operations and M&A, and identify solutions for an eventual rebound.
- Recession – why it’s appearing in chemicals
- Reaction – slower organic growth, shrinking returns
- Rebound – getting through 2024 and positioning for recovery
Dive into our thinking:
Chemicals, Materials, and AG Inputs snapshot: Recession, reaction—rebound
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KPMG serves clients across the global chemicals industry, helping with strategy, M&A planning and execution, and performance improvement.
Elevate Is our approach to performance improvement. We help chemicals, materials and ag input companies identify opportunities for efficiency and EBITDA improvement across all operations and functions.
We put value at the center of everything we do, always balancing risk and reward. We carefully monitor and orchestrate multiple projects to ensure successful execution and value capture.
We help generate employee engagement to create a culture that embraces continuous improvement and innovative thinking.
We use data analytics to develop insights to focus on sources of value, uncover new opportunities, and save costs.
By examining, exploring, and reframing what's possible, we help clients develop processes and ways of working that create better experiences for all stakeholders—employees, customers, partners, and clients.
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