57 CHEMICALS KNOWLEDGE HUB Issue 1 / July 2025 Geopolitical uncertainty (17%) and input cost volatility (15%) continue to test organizations with global exposure or feedstock sensitivity. But here, too, the strategic response has matured: firms are increasingly leveraging regional sourcing, hedging strategies, and supplier diversification to reduce exposure—an evolution from the more reactive tone heard in Q1. Additional operational risks—like supply chain disruptions (13%) and labor constraints (10%)—have stayed relatively consistent across surveys. Their continued presence signals chronic industry friction points, but also reflects a steady investment in contingency planning. Lower-cited risks such as regulatory hurdles and capital constraints (6% each) remain important for companies navigating complex compliance or financing landscapes, though they appear less urgent than in earlier polls. What’s most encouraging is the tone: companies are no longer reacting—they’re preparing. Risks are now embedded in planning cycles, with organizations showing stronger discipline, deeper scenario planning, and more deliberate responses. The outlook is not alarmist, but clear-eyed and confident, grounded in experience and enhanced by a growing toolkit for navigating complexity. Given your current business performance and the broader industry and political environment, how confident are you in your company’s ability to maintain stability over the next 3-6 months? Compared to earlier 2025 Pulse Polls—where caution and operational uncertainty were more prevalent—the June results reflect a strong and steady rise in business confidence across the specialty chemical sector (Graph 3). Nearly 85% of respondents now report moderate to high confidence in their ability to sustain operations and execute strategy over the next 3–6 months. A majority (57%) expressed moderate confidence, pointing to steady footing in the face of lingering headwinds like shifting demand, cost pressure, and regulatory uncertainty. Meanwhile, 28% reported being very confident—up from prior survey levels —highlighting firms with clearly defined growth plans, solid customer pipelines, and the operational resilience to weather disruption. Only 15% expressed low confidence, a sharp improvement over the sentiment seen in earlier quarters. This shift suggests that companies have not only adjusted to the volatility of recent years—they’ve built internal strength around it, using experience, data, and playbook discipline to improve performance readiness. Table 4. Graph 3. INNOVATION & TRENDS
RkJQdWJsaXNoZXIy MjY2OTA4MA==