Supply Chain Issues Persist in the Chemical Industry

Health & SafetyCovid-19Hot SpotsBehind the Wheel
Written By Jennifer Joslyn

More than 90% of the chemical industry has reported that freight transportation and supply chain issues are still affecting their manufacturing process. This percentage is higher than last year, which is concerning for supply chain professionals. Over 35% of chemical companies also reported that customers had canceled orders due to late delivery or delivery problems in general. Many officials believe that reforms are necessary for the supply chain to recover fully.

The pandemic led to decreased demand from various end markets for chemicals. Industries such as automotive, aerospace, construction, and consumer goods faced disruptions and slowdowns due to lockdowns, travel restrictions, and reduced consumer spending, leading to lower sales and production volumes for chemicals used in these sectors. The pandemic also brought about shifts in consumer behavior and product demand. For instance, demand for chemicals used in personal protective equipment (PPE), sanitizers, disinfectants, and cleaning products increased, while demand for chemicals used in other sectors, such as automotive coatings, declined. Chemical companies had to quickly adapt to changing demand patterns, requiring adjustments in production capacities, product portfolios, and supply chain strategies.

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