Growth forecast for chemical process industry
Published by Callum O'Reilly,
The recent Chem Show Business Outlook Survey distributed to professionals across the chemical process industry (CPI), including chemical and processing manufacturers, equipment suppliers, engineers and plant managers, indicates growth in business prospects and sales throughout 2019.
According to survey results, 76% of respondents expect to experience sales growth in the coming year, with 81% rating the 2019 business climate as good or excellent.
“We design the survey to reach a true sample of both processing manufacturers and equipment suppliers in an effort to garner a true reflection of business potential across the entire CPI,” said Clay Stevens, Manager of the Chem Show. “It’s uplifting to see that those we deem as leaders of innovation with both products and technology are confident that this is a year of growth for the industry. We look forward to seeing this reflected on the Show floor in October.”
The survey included five questions pertaining to sales, including those in previous years in comparison to projections for 2019 expectations of sales growth. The survey was distributed at the close of 2018 and gives us a first look into what the overall expected business outlook will be throughout CPI and at the Chem Show in October.
When asked to rate overall industry business prospects heading into 2019, 96% of respondents reported positive projections. Of these responses, 23% answered “excellent,” 58% responded “good,” and 15% responded “fair.” Only 3% responded with poor projections. These numbers indicate an increase from our last survey, conducted at the close of 2016, with more than a 12% increase in “excellent” business forecasts.
Of the 76% of respondents that specified an increase from 2018 business prospects, 56% expect to experience growth of more than 5% over last year. A total of 19% expect business to remain steady at the same rate.
Additionally, the survey indicates an increase in capital investments across the CPI with regard to new or upgraded equipment purchases expected in 2019. Half of those surveyed (50%) responded with their intent to invest in equipment in the coming year. Meanwhile, 25% were not yet sure if they will require new equipment or upgrades for 2019.
When asked about potential trends or issues that could have an impact on the CPI, respondents replied most frequently with concern over increased tariffs or volatile global trade. Despite these concerns, respondents are optimistic for business prospects, even reporting opportunities for growth in new industries such as new specialised coatings and hydroponics.
Recognised as the CPI’s largest North American event exclusively focused on the processing of fluids, powders and gases, the biennial Chem Show returns to the Javits Center in New York City to showcase the newest innovations in chemical process equipment and technology. Since 1915, the Chem Show has brought together processing engineers, plant managers and other CPI professionals from the CPI’s leading companies to see the latest equipment and discover new ways to optimise their plant operations. Interested attendees can register now on the Chem Show website registration page.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/06022019/growth-forecast-for-chemical-process-industry/
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