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2022-10-02

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North American chemical enterprises are optimistic about the distribution market

the worst impact of the economic recession has passed, and North American chemical distributors are currently waiting for the signal of recovery. After summarizing the coping strategies and analyzing the future challenges, Chris Jahn, President of the American Association of chemical distributors (NACD), said, "there is cautious optimism in the industry." In the past year, North American chemical distributors have adopted flexible strategies to deal with the crisis, and the future public offering is expected to activate the distribution M & a market

yaen said that due to the active "slimming" campaign, NACD members have withstood the test of the crisis. However, "only when the paint and coating or electronic market starts to warm up, it indicates the real recovery of the economy. When downstream manufacturers start to produce more products, our sales will increase."

Robert Cole, President of Ashland distribution company in the United States, said, "although the life sciences and energy markets have also declined, their performance is more stable than that of other fields. General purpose products face the greatest challenges."

there are different ways to survive.

mark Vermont, a consultant of a Swiss consulting company, said that cost cutting, inventory reduction and layoffs are the most common survival rules for distributors

Terry Hill, senior vice president and chief commercial officer of uniwell, an American distribution company, said, "the economic recession is also an opportunity, which enables us to have a unique strategic dialogue with suppliers and customers on helping them better cope with their difficulties." According to reports, the economic downturn forced uniwell to make an unconventional response. Due to the diversity of industries faced by distributors, the company has increased technical support, such as reset experts, food technology researchers, etc. "Diversified operation and additional technical support are the result of uniwell's dialogue with customers. We began to do this when the economic crisis occurred in 2001-2002. When we saw the gradual disappearance of the traditional manufacturing base, we began to look for an industry that 'stays young'."

Carol PICAO, President of American Chemical Corporation (Emicals), said that under the protection of cost control, fund management and diversification measures, we performed well during the economic recession, and also increased our advertising budget to obtain new customers and suppliers. She said: "the slowdown in economic growth is a warning to companies, reminding us to pay attention to expenditure and tighten loans. In times of economic prosperity, these are often ignored." PICAO pointed out that the key to coping with the economic downturn is the company's differentiated special services. She said, "in order to meet the requirements of customers for sub packaging and shipment of products, special packaging, import from overseas and so on, we have more strict requirements for employees, so the pressure roller acts on the test piece strictly, thus saving time and money for customers." At present, the company is planning to increase marketing and business operation personnel

Eugene MANSANO, executive director of Mexican distributor pochteca, said that although Mexico's GDP is expected to decline by 6% this year, they will also try to maintain a sales growth of 12.5%, which is mainly due to diversified operations, good profit management and focus on profitable customer groups, products and market segments

In the first half of 2010, bcpartners, an international financial investment institution, planned an initial public offering (IPO) for Germany's brentag company (brentag's parent company in North America), which is estimated to raise $2.2 billion, the largest in German history. A senior consultant said, "this is beneficial to other equity investors in the distribution field, and they are likely to follow suit, which is the success of brentag's IPO." However, he warned: "if the IPO of brentag, a ring friction and wear tester that evaluates the lubrication performance of various lubricants, fails, it will tie up some distributors and may hinder the occurrence of large-scale mergers and acquisitions in the short term."

Displacement accuracy

Vermont pointed out that the credit crunch and the uncertainty of private equity withdrawal have killed mergers and acquisitions in the chemical distribution sector in 2009. "Historically, mergers and acquisitions in the chemical distribution field are all foreign funds. If there is no such way to obtain funds as IPO, the distributor M & a market will remain weak."

in the consciousness of North American distributors, profit is the first. In this regard, Yan en pointed out: "the government's regulation of the distribution industry is also very noteworthy." Distributors must deal well with many major federal agencies, such as the environmental protection agency, the occupational safety and health administration, the Ministry of transportation, and various national security departments, as well as state and local government agencies

MANSANO also pointed out: "chemical distribution has become the most regulated industry." In the United States, in addition to the credit crunch and slow economic recovery, the main challenge facing chemical distributors in 2010 will be increasing regulations

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