56 CHEMICALS KNOWLEDGE HUB Issue 1 / July 2025 As companies look toward the second half of 2025, many are beginning to view U.S. federal policy not just as a backdrop—but as a potential catalyst for growth. Reshoring and U.S.-based manufacturing support topped the list, cited by 33% of respondents, signaling growing confidence that policy is aligning with longterm sector needs—particularly around domestic competitiveness and supply chain security (Table 2). Encouragingly, nearly 20% of companies also pointed to improved regulatory clarity, especially regarding frameworks like TSCA. While these gains may seem incremental, for manufacturers navigating long permitting cycles and compliance uncertainty, even modest improvements can unlock planning confidence and investment decisions. Other areas—such as trade enforcement, CapEx, and infrastructure investment—were less frequently cited, but still reflect pockets of optimism tied to legislative and administrative engagement. That said, 20% of respondents still saw no supportive policy signals, highlighting a continued disconnect between Washington’s intent and its on-the-ground impact in specialty manufacturing. Yet the overall trend is positive. Compared to previous SOCMA Pulse Polls, more companies now recognize policy as a strategic lever—not just a regulatory hurdle. The sector is watching closely, not just for compliance cues, but for clarity that enables capital deployment, reshoring, and long-term competitiveness. Which key areas will your company prioritize in the second half of 2025 to drive growth? Compared to the early 2025 Pulse Polls, which emphasized stabilization and cost containment, the latest data shows a measurable shift toward growthoriented execution (Table 3). The leading priority for the second half of the year is now securing new customers (41%)—up from earlier survey responses that focused more heavily on maintaining existing accounts and protecting margin. This reflects a broader commercial confidence and renewed appetite for market expansion. Cost management (30%) remains a top focus, but the motivation has evolved. Where earlier polls captured a tone of operational triage, companies now view cost discipline as a way to preserve capital for reinvestment, enabling flexibility when opportunities arise. Capacity expansion (15%) continues to gain momentum, signaling that more firms are preparing to scale— through infrastructure, systems, or customerfacing capacity. Though fewer companies cite R&D and domestic supply chain investment (7% each), their consistency across surveys indicates a growing baseline commitment to long-term competitiveness and innovation. Taken together, this progression from cautious optimization to targeted growth investment underscores a sector that is gaining clarity, building capability, and confidently charting its path forward. What are the biggest risks to your business in the second half of 2025? As companies navigate the second half of 2025, the risk environment remains challenging—but no longer unfamiliar. In contrast to early 2025 Pulse Polls, when uncertainty clouded both demand and operational visibility, the latest findings show a sector increasingly equipped to anticipate and absorb disruption (Table 4). Customer order cuts and delays (33%) remain the top concern, highlighting ongoing demand-side unpredictability. Yet unlike earlier in the year—when delayed orders often led to broader hesitancy— companies now appear to be managing that variability with greater agility in forecasting, cash flow planning, and staffing models. Table 3. INNOVATION & TRENDS
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