The state of the chemical industry—is it getting more complex?
The chemical industry in Australia is a notable one with a significant contribution to the country’s economy. The Australian chemical industry has more than 5,500 individual businesses, which comprises small family-owned businesses and multinational enterprises operating in the industry.
Not just for the Australian economy, but the chemical industry is a very important sector because the industry converts the raw materials into the desired products that people use in their daily lives. As a matter of fact, several other industries are also reliant on chemical suppliers Adelaide for their sustenance and operations.
For instance, the food industry uses preservatives, which are a key ingredient in packaged food. This preservative is manufactured by chemical manufacturers and helps food manufacturers maintain the quality of the food and import and export food to and from various parts of the world.
The Key Features of The Chemical Industry In Australia
The chemical industry is growing at a fast rate in Australia and all across the globe. Innovation, pricing strategy, and customer-centricity are the three things that are the center point of this growth. These three components are helping chemical manufacturers and businesses in the industry to find new ways to thrive amidst this challenging pandemic situation.
Although, the chemical industry continues to be the second-largest manufacturing industry in Australia. The industry employs over 64,000 people, with each employment creating five more job opportunities in related supply chains.
As said earlier, the chemical industry contributes to the Australian economy, which is approximately $11.6 billion to the GDP.
The industry also supplies products to 109 out of the 111 industries in Australia. This makes it pretty clear why the chemical suppliers of Adelaide are a key part of the Australian economy.
The State Of The Chemical Industry
The chemical industry has been facing slower global economic growth in recent times. Due to the recent COVID-19 pandemic situation, there have been trading disruptions with a significantly reduced end-market demand. This is due to a steep decline in demand in key industries like automotive and construction, where chemical suppliers provide various products.
This general downfall in demand has also led to an oversupply of commodity chemicals. This has led to a significant drop in prices, and weaker pricing has made organic growth more challenging and stagnant.
Although a lot of chemical companies are coping well with the current situation through several measures that include:
- Finding new applications of products
- A change of business models
- Reinvented products and discovery methods
Final Words
The chemical industry, like many others, has taken a setback due to the recent pandemic, and that is quite obvious. Although, the industry and many businesses are striving to get back up on their feet through better and reinvented products and a more enhanced customer experience. Axis Scientific is a leading name in the industry that has significantly transformed and leveled up its business model, products, and discovery methods to offer better products and a better experience to its customers, helping them thrive in the industry.
