How FMI’s Survey Enabled a Specialty Chemical Company to Consolidate its Position with a Sustainability Strategy
Chemicals & Materials
A leading manufacturer in the specialty chemicals industry had expended its manufacturing facilities across the globe with increasing applications of chemicals in various industrial applications. However, the client was struggling to scale up in the market due to the ecological risks associated with its product as well as its manufacturing practices. Growing environmental awareness among end users along with increasing implementation of strict regulations was hindering the growth of the company. The client wanted to reevaluate its sustainability strategies to be in-line with the emerging ecological trends in the specialty chemicals industry, and ultimately build a profitable future in the industry. The company was struggling to conform to the new regulations and increasing environmental concerns among end-use industries, which triggered the client to adopt new sustainability goals that will sync with the company’s corporate strategies.
FMI finds that, the increasing consumption of various specialty chemicals in a wide range of industrial applications has led to the emergence of small- and medium-scale businesses to enter the industry. The specialty chemicals industry is fragmented among tier-2 and tier-3 companies, and new entrants are mainly competing on price to advance in this industry. Local players in the specialty chemicals industry in various geographical regions, especially in emerging economies, are expanding their businesses with the increasing growth of end-user industries. In addition, increasing awareness about the ecological impacts of the applications of specialty chemicals is also triggering market players to take initiatives towards reducing the environmental footprint of their business operations. Thereby, most specialty chemical manufacturers have been increasing investments in their sustainability initiatives, while bolstering innovations in their manufacturing processes.
FMI conducted a thorough research on the current market dynamics, and came up with predictions on the future trends and factors that may influence the growth of the specialty chemicals industry. This assessment exercise helped FMI in understanding the prevailing sustainability issues that can restrict the growth of the company in the industry. FMI developed a new sustainability strategy for the client, which was closely associated with the company’s corporate goals and brand equity, and also satisfied the ecological concerns of end users. FMI proposed to increase investments in R&D facilities to develop innovative manufacturing technologies so as to reduce the carbon footprint of the company’s various business operations. FMI also developed a long-term investment plan along with a year-on-year improvement plan for the client to improve its sustainability credentials.
FMI’s new sustainability strategy for the client reflected the company’s new goals and focus, and it helped the client in improving its brand equity as well. The new strategy helped the client in meeting its sustainability goals and improve its position in the specialty chemicals industry. The continuous improvement plan developed by FMI helped the client in developing a new innovation center that improved the logistics and speed of distribution. A long-range sustainability strategy also helped the client to increase its sales, not only in developing regions but also in developed countries, where extremely strict environmental rules are imposed by governing bodies.