Many chemical industry executives say that the U.S. fiscal cliff and general economic uncertainty are driving increased focus on operational excellence and a strong balance sheet. Despite economic challenges, executives say the chemicals industry will continue to see strong growth in the U.S. as a result of shale gas developments, according to the results of a poll conducted by KPMG LLP, the U.S. audit, tax and advisory services firm.
According to the KPMG poll, 41% of industry business leaders indicate that in the current macro-economic environment, their biggest concern is the U.S. fiscal cliff. An additional 20% point to a slowdown in emerging markets and 19% say Eurozone debt issues.
Nearly one-third of executives surveyed, shale gas developments in the U.S. will drive significant growth in petrochemical and downstream manufacturing. Additionally, 37% say U.S. shale exports will force increased competition leading to price and margin erosion in Asia.
Another 28% of chemical industry business leaders say their companies do not currently have an emerging markets growth strategy in place.