Details

  • Industry: Chemicals
  • Type: Survey report
  • Date: 9/26/2011

Global Chemical Executives Eye Acquisitions, Foreign Markets to Fuel Growth 

In the face of escalating input costs, stiffer competition, and a struggling global economy, chemical industry executives say they will use the significant cash on their balance sheets to pursue strategic acquisitions, invest in technology, and expand into new markets to spur company growth, according to KPMG LLP’s chemicals pulse survey.
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Among the survey's key findings:

  • 66 percent of respondents say their companies will be involved in a merger or acquisition as a buyer in the next two years. European executives appear even more bullish, with 71 percent saying they would be buyers
  • 70 percent indicate their companies have significant cash on their balance sheets, intending the cash for acquisitions, technology, and expansion into new markets
  • 80 percent plan to boost capital spending next year for new products and services, acquisitions, and research and development. All of the executives surveyed in Asia-Pacific predict capital spending would increase
  • 42 percent of executives say emerging markets currently account for more than 30 percent of their companies’ revenues
  • Looking ahead to 2015, the number of executives who predict that revenues derived from emerging markets will exceed 30 percent rises to 61 percent