Compass 2011: Global chemicals sector midyear outlook
A new report from the Deloitte Touche Tohmatsu Limited (DTTL) Global Manufacturing Industry group, Compass 2011: Global chemicals sector midyear outlook, indicates that the chemical industry is continuing to recover.
Contributing to the upswing is the increased global sales in the automotive industry with the other end markets, consumer electronics and pharmaceuticals, also helping to drive revenue so far in 2011.
Looking ahead, China is anticipated to dominate the global chemical scene with the highest percentage revenue growth for the remainder of 2011. Markets such as India, Brazil, and Korea will follow China closely. While demand in the United States and Europe is expected to be moderate, higher prices will likely translate into stronger revenues for chemical companies in these markets this year.
Merger and acquisition (M&A) activity is a bright spot for the global chemicals sector, with 2011 deal volumes and values likely to exceed pre-recession figures. China and other developing countries will likely be targets for M&A activity in both the chemical and plastics sectors, which will likely accelerate the rate of deals in 2011.
According to the report, sustainable housing and agriculture are two global megatrends in play this year for chemical companies looking to gain a competitive advantage. Chemical players that are proactively looking to capitalize on megatrends are now focusing their long-term business strategies on solutions that are critical to society.