1 Table Of Contents 2
1.1 List Of Tables 4
1.2 List Of Figures 7
2 Introduction 9
2.1 What is This Report About? 9
2.2 Methodology 9
2.3 Profile of Survey Respondents 10
3 Executive Summary 14
3.1 The Chemical Industry is Generally Optimistic About the Recovery of the Global Economy 14
3.2 The Level of Optimism About Revenue Growth is Marginally Positive Among Both Buyers and Suppliers 14
3.3 Chemical Companies Will Be Increasing Procurement Spend Over the Next 12 Months 14
3.4 Industry Players Face a Number of Key Challenges Due to the Recession 15
3.5 Suppliers Must Update Their Knowledge of Buyer Needs During the Periods of Recession and Recovery 16
4 Economic Outlook and Confidence 17
4.1 Global Economy Recovery Expectations 17
4.2 Revenue Growth Expectations 21
5 Chemical Industry Investment Outlook 26
5.1 Fastest and Slowest Growing Markets 26
5.2 M&A Activity Predictions 34
5.3 Supplier’s Industry Outlook 38
6 Recession: Threats and Opportunities for the Chemical Industry 41
6.1 Leading Business Concerns Due to Recession 41
6.2 Key Actions to Overcome Business Threats 45
6.3 Key Actions to Maintain and Win Buyer Business 48
6.4 Leading Recession and Recovery Related Business Opportunities 58
7 Chemical Industry Buyer Spend Activity 62
7.1 Annual Procurement Budgets 62
7.2 Expected Change in Procurement Spend 66
7.3 Expected Change in Spend by Product and Service Category 71
8 Procurement Behaviors and Strategies and The Impact of Recession 81
8.1 Critical Success Factors for Supplier Selection 81
8.2 Current Effects of Recession on Procurement Objectives 87
8.3 Expected Future Effects of Recession on Procurement Objectives 90
8.4 The Effects of Recession on Procurement Strategy 97
9 Appendix 107
9.1 Full Survey Results – Closed Questions 107
9.2 Methodology 114
9.3 Contact Us 115
9.4 About Global Markets Direct 115
9.5 Disclaimer 115
1.1 List Of Tables
Table 1: Count of Global Chemicals Industry Survey Respondents by Company Type (Number of Respondents), 2009 Industry Survey 10
Table 2: Buyer Respondents by Job Role (% Buyer Respondents), Global Chemicals Industry, 2009 11
Table 3: Buyer Respondents by Organization’s Global Turnover (% Buyer Respondents), Global Chemicals Industry, 2009 11
Table 4: Buyer Respondents by Organization’s Total Employee Size (% Buyer Respondents), Global Chemicals Industry, 2009 12
Table 5: Supplier Respondents by Job Role (% Supplier Respondents), Global Chemicals Industry, 2009 12
Table 6: Supplier Respondents by Organization’s Global Turnover (% Supplier Respondents), Global Chemicals Industry, 2009 13
Table 7: Supplier Respondents by Organization's Total Employee Size (% Supplier Respondents), Global Chemicals Industry, 2009 13
Table 8: Global Chemicals Industry Expectations of Global Economy Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 19
Table 9: Global Chemicals Industry Expectations of Global Economy Recovery Timings by Company Type: Chemicals Processors / Manufacturers, Chemicals Contractors, Chemicals Industry Suppliers (% All Respondents), 2009 21
Table 10: Company Revenue Growth Optimism by Global Chemicals Industry Company Type: Chemicals Processors / Manufacturers, Chemicals Contractors, Chemicals Industry Suppliers (% All Respondents), 2009 23
Table 11: Company Revenue Growth Optimism in the Global Chemicals Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 25
Table 12: Chemicals Processor / Manufacturer Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Chemicals Processor / Manufacturer Respondents), 2009 28
Table 13: Chemicals Contractor Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Chemicals Contractor Respondents), 2009 30
Table 14: Chemicals Industry Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Chemicals Industry Supplier Respondents), 2009 33
Table 15: Key Growth Areas in the Global Chemicals Industry (Analysis of Supplier Respondents), 2009 38
Table 16: Key Growth Areas in the Global Chemicals Industry (Analysis of CEO/MD/Board/Senior Level Supplier Respondents), 2009 39
Table 17: Key Declining Areas in the Global Chemicals Industry (Analysis of Supplier Respondents), 2009 40
Table 18: Key Declining Areas in the Global Chemicals Industry (Analysis of CEO/MD/Board/Senior Level Supplier Respondents), 2009 40
Table 19: Chemicals Processor / Manufacturer Vs. Chemicals Contractor Vs. Chemicals Industry Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Chemicals Industry Buyers and Suppliers (% All Respondents), 2009 44
Table 20: Leading Business Concerns for the Period 2009-2010 Among Global Chemicals Industry Buyers and Suppliers by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 45
Table 21: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Chemicals Industry (Analysis of All Respondents), 2009 46
Table 22: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Chemicals Industry – Senior Level Responses Only (Analysis of CEO/MD/Board Level Respondents), 2009 47
Table 23: Most Important Actions Being Implemented by Chemicals Industry Suppliers to Overcome Leading Business Concerns in 2009-2010 in the Global Chemicals Industry (Analysis of Chemicals Industry Suppliers Respondents), 2009 47
Table 24: Most Important Actions Being Implemented by Chemicals Processors / Manufacturers, Chemicals Contractors to Overcome Leading Business Concerns in 2009-2010 in the Global Chemicals Industry (Analysis of Chemicals Processors / Manufacturers, Chemicals Contractors Respondents), 2009 48
Table 25: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 51
Table 26: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% Buyer Respondents), 2009 53
Table 27: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Analysis of Buyer Respondents by Company Turnover (% Buyer Respondents), 2009 54
Table 28: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Analysis of All Buyer Respondents by Procurement Budget (% Buyer Respondents), 2009 55
Table 29: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009 57
Table 30: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Analysis of All Buyer Respondents by Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 58
Table 31: Leading Business Opportunities During the Recession in the Global Chemicals Industry (Analysis of All Respondents), 2009 59
Table 32: Leading Business Opportunities During the Recession in the Global Chemicals Industry – Senior Level Responses Only (Analysis of CEO/MD/Board/Senior Level Respondents), 2009 59
Table 33: Leading Business Opportunities for Chemicals Industry Suppliers During the Recession in the Global Chemicals Industry (Analysis of Supplier Respondents), 2009 60
Table 34: Leading Business Opportunities for Chemicals Processors / Manufacturers, Chemicals Contractors During the Recession in the Global Chemicals Industry (Analysis of Buyer Respondents), 2009 61
Table 35: Annual Procurement Budgets in US$ in the Global Chemicals Industry: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 62
Table 36: Annual Procurement Budgets in US$ in the Global Chemicals Industry by Region (% All Buyer Respondents), 2009 65
Table 37: Expected Change in Spend on Products and Services in the Global Chemicals Industry Over the Next 12 Months: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 67
Table 38: Expected Change in Spend on Products and Services in the Global Chemicals Industry Over the Next 12 Months by Region (% All Buyer Respondents), 2009 70
Table 39: Future Change in Spend in the Global Chemicals Industry by Product And Service Category: Chemicals Processor / Manufacturer - Expected Increase or Decrease Over the Next 12 Months (% Chemicals Processor / Manufacturer Respondents), 2009 73
Table 40: Future Change in Spend in the Global Chemicals Industry by Product and Service Category: Chemicals Contractor - Expected Increase or Decrease Over the Next 12 Months (% Chemicals Contractor Respondents), 2009 75
Table 41: Critical Success Factors for Selecting a Chemicals Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 85
Table 42: Critical Success Factors for Selecting a Chemicals Industry Supplier: Chemicals Processor / Manufacturer Vs. Chemicals Contractor Comparison (% All Buyer Respondents), Global, 2009 87
Table 43: Current Effects of Recession on Procurement Objectives and Priorities in the Global Chemicals Industry by Company Turnover (% All Buyer Respondents), 2009 90
Table 44: Expected Changes in Procurement Strategy in the Global Chemicals Industry to Drive Value Across the Business Due to Recession: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 100
Table 45: Expected Changes in Procurement Strategy in the Global Chemicals Industry to Drive Value Across the Business Due to Recession: All Buyers by Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 101
Table 46: Expected Changes in Procurement Strategy in the Global Chemicals Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009 103
Table 47: Expected Changes in Procurement Strategy in the Global Chemicals Industry to Drive Value Across the Business Due to Recession: All Buyers by Company Turnover (% All Buyer Respondents), 2009 104
Table 48: Chemicals Processor / Manufacturer Attitudes and Approaches to Existing Procurement Practices : Level of Agreement to the Following Five Statements (% Chemicals Processor / Manufacturer Respondents), 2009 105
Table 49: Chemicals Contractor Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Chemicals Contractor Respondents), 2009 106
Table 50: Full Survey Results-Closed Questions 107
1.2 List Of Figures
Figure 1: Leading Business Concerns for the Period 2009-2010 Among Global Chemicals Industry Buyers and Suppliers (% All Respondents), 2009 15
Figure 2: Global Chemicals Industry Expectations of Global Economy Recovery Timings (% All Respondents), 2009 17
Figure 3: Global Chemicals Industry Expectations of Global Economy Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 18
Figure 4: Global Chemicals Industry Expectations of Global Economy Recovery Timings by Company Type: Chemicals Processors / Manufacturers, Chemicals Contractors, Chemicals Industry Suppliers (% All Respondents), 2009 20
Figure 5: Company Revenue Growth Optimism in the Global Chemicals Industry (% All Respondents), 2009 22
Figure 6: Company Revenue Growth Optimism by Global Chemicals Industry Company Type: Chemicals Processors / Manufacturers, Chemicals Contractors, Chemicals Industry Suppliers (% All Respondents), 2009 23
Figure 7: Company Revenue Growth Optimism in the Global Chemicals Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 24
Figure 8: Chemicals Processor / Manufacturer Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Chemicals Processor / Manufacturer Respondents), 2009 27
Figure 9: Chemicals Contractor Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Chemicals Contractor Respondents), 2009 29
Figure 10: Chemicals Industry Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Chemicals Industry Supplier Respondents), 2009 32
Figure 11: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Chemicals Processor / Manufacturer Industry (% Chemicals Processor / Manufacturer Industry Respondents), 2009 35
Figure 12: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Chemicals Contractor Industry (% Chemicals Contractor Industry Respondents), 2009 36
Figure 13: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Chemicals Supplier Industry (% Chemicals Industry Supplier Industry Respondents), 2009 37
Figure 14: Leading Business Concerns for the Period 2009-2010 Among Global Chemicals Industry Buyers and Suppliers (% All Respondents), 2009 42
Figure 15: Chemicals Processor / Manufacturer Vs. Chemicals Contractor Vs. Chemicals Industry Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Chemicals Industry Buyers and Suppliers (% All Respondents), 2009 43
Figure 16: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 50
Figure 17: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% Buyer Respondents), 2009 52
Figure 18: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Chemicals Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009 56
Figure 19: Annual Procurement Budgets in US$ in the Global Chemicals Industry: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 63
Figure 20: Annual Procurement Budgets in US$ in the Global Chemicals Industry by Company Turnover (% All Buyer Respondents), 2009 64
Figure 21: Annual Procurement Budgets in US$ in the Global Chemicals Industry by Region (% All Buyer Respondents), 2009 65
Figure 22: Expected Change in Spend on Products and Services in the Global Chemicals Industry Over the Next 12 Months: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 67
Figure 23: Expected Change in Spend on Products and Services in the Global Chemicals Industry Over the Next 12 Months by Company Turnover (% All Buyer Respondents), 2009 69
Figure 24: Expected Change in Spend on Products and Services in the Global Chemicals Industry Over the Next 12 Months by Region (% All Buyer Respondents), 2009 70
Figure 25: Future Change in Spend in the Global Chemicals Industry by Product and Service Category: Chemicals Processor / Manufacturer - Expected Increase Or Decrease Over The Next 12 Months (% Chemicals Processor / Manufacturer Respondents), 2009 72
Figure 26: Future Change in Spend in the Global Chemicals Industry by Product and Service Category: Chemicals Contractor - Expected Increase or Decrease Over the Next 12 Months (% Chemicals Contractor Respondents), 2009 74
Figure 27: Future Change in Spend in the Global Chemicals Industry by Product and Service Category: Expected Increase Over the Next 12 Months Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 77
Figure 28: Future Change in Spend in the Global Chemicals Industry by Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers by Company Turnover (% All Buyer Respondents), 2009 78
Figure 29: Future Change in Spend in the Global Chemicals Industry by Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers by Region (% All Buyer Respondents), 2009 80
Figure 30: Critical Success Factors for Selecting a Chemicals Industry Supplier: Difference in Views, Buyers Vs. Suppliers (Net Difference in Ranking), Global, 2009 82
Figure 31: Critical Success Factors for Selecting a Chemicals Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 84
Figure 32: Critical Success Factors for Selecting a Chemicals Industry Supplier: Chemicals Processor / Manufacturer Vs. Chemicals Contractor Comparison (% All Buyer Respondents), Global, 2009 86
Figure 33: Current Effects of Recession on Procurement Objectives and Priorities in the Global Chemicals Industry (% All Buyer Respondents), 2009 88
Figure 34: Current Effects of Recession on Procurement Objectives and Priorities in the Global Chemicals Industry: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 89
Figure 35: Likelihood of Future Change in Procurement Objectives in the Global Chemicals Industry (% All Buyer Respondents), 2009 91
Figure 36: Likelihood of Future Change on Procurement Objectives in the Global Chemicals Industry: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 92
Figure 37: Likelihood of Future Change on Procurement Objectives in the Global Chemicals Industry by Company Turnover (% All Buyer Respondents), 2009 93
Figure 38: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Chemicals Industry (% All Buyer Respondents), 2009 94
Figure 39: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Chemicals Industry: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 95
Figure 40: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Chemicals Industry by Company Turnover (% All Buyer Respondents), 2009 96
Figure 41: Expected Changes in Procurement Strategy in the Global Chemicals Industry to Drive Value Across the Business Due to Recession (% All Buyer Respondents), 2009 98
Figure 42: Expected Changes in Procurement Strategy in the Global Chemicals Industry to Drive Value Across the Business Due to Recession: Chemicals Processor / Manufacturer Vs. Chemicals Contractor (% All Buyer Respondents), 2009 99
Figure 43: Expected Changes in Procurement Strategy in the Global Chemicals Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009 102