Chemical firms have been battered by the worst recession since the Great Depression

Chemical firms have been battered by the worst recession since the Great Depression

Knowde Take:

While there are no easy solutions for bouncing back from a recession, one of the impacts it will have will be that sales and marketing will be cut significantly. That will make it tougher for companies to rebound. Also likely to be scuttled: plans to shift towards digitalization. But there’s a way to get instant digital transformation, expand customer reach, and have a 24/7 marketplace that’s supported by cutting-edge digital marketing: a storefront on Knowde.

US chemical industry is in for a brutal 2020

The COVID-19 pandemic has pushed the US and world economies into the worst recession in decades, and the US chemical industry will see a sharp decline before rebounding next year, according to an updated outlook from the American Chemistry Council (ACC). The trade association’s baseline prediction is for a 9.3% decline in US chemical production volume this year. Its pessimistic outlook, in which COVID-19 cases start spiking again, is for a 14.7% production decline, and its optimistic scenario, where the economy benefits from a V-shaped recovery, is for a 7.0% decline. The US industry, the ACC predicts, will cut about 20,000 jobs this year, a decline of 3.6%. Capital spending, as companies tighten their belts and delay projects, will decline about 17.6%, to $29 billion. This is a far cry from the ACC’s prediction in December that US production will increase by 0.4% this year. “COVID-19 has obviously changed that,” says Martha Moore, senior director of policy analysis and economics.

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