The chemicals industry continues to face unparalleled market and competitive turbulence. Low-cost players and feedstocks are changing the fundamental economics of the industry in unexpected ways, forcing established competitors to rethink their existing footprint and operating models. Dynamic end-markets, shifting profit pools and highly variable demand are leading companies to reevaluate time-tested strategies.  And all of this is occurring at a pace that leaves little time for managers to reflect on their options.

Companies have responded with a variety of growth and defensive strategies: some have shed traditional lower-margin operations in favor of new markets or products, other companies have pursued wrenching cost reductions to ensure near-term profitability and some have simply retreated from the market either through sale or bankruptcy.  Still other organizations have moved aggressively to drive top-line growth by doubling down on serving their best customers to gain share, shifting asset portfolios to attractive future markets and building new go-to-market capabilities.

This turmoil is painful, and the results of these efforts have been mixed. Companies that have been successful in increasing revenue and profits focused on the development of core businesses to their full potential and conducted selective expansion into attractive adjacencies.

Bain's experience in Chemicals

Bain has undertaken hundreds of projects in the chemicals industry and we have chemicals experts in every region who serve clients locally. Our deep experience extends across every segment of the market including polymers and plastics, specialty and performance products, agricultural products, and general and basic chemicals.  We perform a broad spectrum of work across these verticals, including strategy development (at both the corporate and business unit level), performance improvement and merger integration. This global experience combined with motivated client management teams helps develop proprietary insights that unlock significant value for our clients.

At the corporate and business unit level, our strategy work focuses on the most important sources of business value based on a keen understanding of the regulatory and competitive environments. At the business-unit level, Bain helps clients retain and expand their customer base through marketing and sales and technology excellence.  We also help improve operating performance by increasing the effectiveness and efficiency of each of the key elements of the value chain, as well as deploy assets and IT investments for maximum return and instill a high-performance culture throughout the organization.

Bain's clients include leading global integrated players, specialty-products companies and the businesses that surround them. The Chemicals practice is active in the Americas, Europe and Asia.

To find out more about our work in this industry, please contact the practice.