The shale gas boom, which began nearly 15 years ago, has overturned the global energy market and changed the architectural pattern of chemical companies. With the initial economic shock and the end of the first wave of investment, what should investors, leaders and executives focus on today? How can leading companies position themselves to gain growth and competitive advantage in 2019 and beyond?
According to the U.S. chemical Commission, “an adequate and affordable supply of natural gas has transformed the U.S. chemical industry from a world high cost producer five years ago to one of the lowest cost producers today.” The United States now benefits from a “decisive competitive advantage” in the production of basic petrochemicals, the report said.
Statistics tell the story. According to Industry Association statistics, 333 new chemical projects are directly attributed to shale gas development, creating an astonishing new economic output of $292 billion. The Commission predicts that the industry will create more than 430000 new jobs, directly and indirectly, by 2020. The latest investment opportunity of $2020 billion is worth noting.
How can you build your chemical companies to gain a competitive advantage in this potentially hot global market? Here are some suggestions.
When choosing a location for your facility, make labor a key focus of your location related risk assessment. Your ability to access resources is critical to your success – this is true during the build phase, of course, when you will compete for the skilled workers you need. Once chemical companies start operating, the same will happen.
The key is to study the local working conditions comprehensively. You and your competitors will look at basic indicators based on the number of local labor resources, their skill level and known competition. In addition, you must make sure that there are any local labor actions or strikes.
However, smart companies gain competitive advantage by digging deeper. How are workers organized in this area? Has the organization changed in recent months or years, or is it expected to change? Is the number of trade union members increasing or decreasing? How much do you know about union leadership and local politics? Are there other “invisible” factors that attract people to the area, or drive them away? Is it impossible to take this view from the public From the records; it requires old-fashioned leather shoe surveys and reports. Your competitive advantage will come from your willingness to invest.
Just because a previous chemical company has been successful in the region does not mean that your company will be successful, too. The working conditions are changing rapidly. Investors and executives at chemical plants have learned from the bitter lesson that in a hot market, prices can soar and profits evaporate overnight. In terms of labor force, the chemical construction industry and other industrial construction industry launched a fierce competition, a hot market is always possible. Do your research and put your company on the most solid foundation possible.