A number of upside and downside risks remain for US chemical companies. Overcapacity in the next few years has the potential to become a significant issue. Companies should be proactive in developing a stronger market presence, end-to-end supply chains and business partnerships in emerging economies to help absorb rising production as new US plants come online.
Companies should also keep a close eye on domestic markets, such as construction and automotive, where growth remains positive but still in flux. Other risks include increased competition from emerging markets, a slowdown in the global economy, uncertainty about trade agreements, regulatory pressure and investor activists more focused on short-term gains than a company’s sustainability.