54 CHEMICALS KNOWLEDGE HUB Issue 1 / July 2025 INNOVATION & TRENDS 28%, reflecting growing belief in market stabilization and improved demand visibility. That’s a measurable swing in sentiment, grounded in stronger order pipelines, refined cost controls, and renewed investment activity. Companies appear increasingly positioned to grow— not by default, but by design. Whether through new business acquisition, capacity ramp- up, or deeper customer engagement, the second half of the year is shaping up to be less about uncertainty and more about strategic execution. As this momentum builds, SOCMA members continue to lead the way —showing that with the right positioning, even volatile markets can become platforms for growth. The path ahead is still complex, but it is far clearer than it was just a few months ago— and many in the sector are now moving with purpose. Which key factors had the most drag on your business performance during the first half of 2025? When reflecting on the first half of 2025, companies identified a familiar mix of external pressures—but with a notably more strategic posture in how they are responding (Table 1). Customer demand fluctuations remained the top drag on performance, cited by 37% of respondents, but many firms are no longer treating it as a disruption— they’re treating it as a solvable challenge. Improved forecasting, deeper customer engagement, and diversified sales approaches are helping firms better absorb variability. Trade and tariff pressures (25%) and input cost volatility (13%) continue to weigh on margins, particularly for companies with limited sourcing agility. Yet compared to earlier surveys, these risks are increasingly being managed—not just endured—through smarter procurement models and regional supply strategies. What stands out in the June Pulse Poll is not just the types of challenges cited—but their distribution. Labor constraints (9%), logistics hurdles (7%), regulatory complexity (6%), and capital access issues (3%) all surfaced, reinforcing the reality of a multifaceted risk environment. But instead of pointing to one dominant headwind, companies are showing they are monitoring and mitigating across functions—a clear marker of organizational maturity. Taken together, the data reflects a sector that’s not waiting for stability to return. It’s a community of businesses building the systems and strategies to move forward— despite, and often because of, the friction in the landscape. Are there any recent policy developments or federal focus areas that give you optimism for growth or stability in the second half of 2025? Table 1. Table 2.
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