J&M Presentation.Ppt

ICIS / J&M – Chemicals Market Survey ‘09

Prepared by:
Kevin Puttock, Reed Business Insight

On behalf of:

April 2009
Reference Number: 4983

ICIS / J&M chemical market survey ‘09

Contents

• Background & Objectives Slide 3

• Methodology Slide 4

• Respondent Profile Slides 5 - 12

• Main findings Slides 13 - 34

• Key findings Slides 35 - 36

• Appendix Slides 37 - 49

2


Background & Objectives

• Global financial traumas, lack of business confidence and a sharp fall-off in chemical
demand are forcing companies to take critical short-term actions as they focus on
surviving the crunch.

• Research was required by ICIS and J&M Management Consulting to measure the current
pulse of the industry and find out how chemical industry executives are reacting in these
unprecedented times.

• Research will be used by ICIS primarily for editorial purposes

3


Methodology
• The survey was conducted
as an online self completion
quantitative survey sent by
email to registered readers
of ICIS Chemical Business.
• The survey was incentivised
with a prize draw to win an
iPod Touch.
• Fieldwork was conducted
over a 3 week period from
2nd – 22nd April, 2009.
• In total 275* respondents
completed the survey.

* Although this is a typical response for a survey of this kind, it is still low overall and it should be remembered that
the majority of prospective respondents did not reply. Therefore care must be exercised when interpreting the results
as those non-respondents may differ in their profile and views. In addition, a self completion survey tends to be
biased towards the more loyal readers of a publication.
4


• Respondent Profile
• Job position
• Length of time spent working in the chemicals industry
• Geographic location
• Segments operating within
• Global revenue
• Number of employees
• Organisation ownership status

5


Around a quarter of respondents are CEO‟s, Chairmen or Presidents of their
organisations

Q. Which of the following job titles best reflects your position?
Base: all respondents (269)
6


Around three quarters of respondents have been working in the industry for more than
10 years

Q. How many years have you been working in the chemicals industry?
7


39% of respondents work for organisations based in North America, followed by 20%
in Europe and 17% in India

Q. Where is your company based?
8


Respondents most commonly work for orgabnisations that operate within the specialty
chemicals segment

Q. In which of the following segments does your company operate?
9


Just under half of respondents work for organisations with a global revenue of up to
$500m

Q. What is the total global revenue of your company?
10


Just over half work for organisations that employ 500 people or less in total

Q. How many people does your organisation employ in total?
11


Around a third of respondents each work for organisations that are publicly
listed, privately owned or family owned

Q. How would you describe the ownership status of your company?
12


• Main findings
• Expectation of whether the downturn will continue
• Change in demand over the next 12 months
• Change in employment levels over the next 12 months
• Expectation of whether respondent will still be employed in 12 months time
• Expectation of debt defaults over the next 12 months
• Expectations of changes in mergers and acquisitions activity
• Importance of performance metrics
• Change in working capital
• Change in demand over last 6 months
• Excess capacity
• At risk suppliers
• Renegotiating terms with suppliers
• Importance of customer-focussed activities
• Customer-focussed activities currently being used
• Investment in R&D
• Plans to bring new products to market
• Employment actions taken
• Agreement with opinion statements
• Expectation of duration of downturn
• Expectations of whether company will survive the downturn

13


Around two thirds of respondents believe the current downturn in demand
will continue into Q2 of 2009

Q. Do you expect the sharp downturn in demand in Q4 2008 / Q1 2009 to continue in Q2?
14


Over a quarter of respondents expect demand in the chemical sector to decrease by
more than 11% in the next 12 months. The majority of those that think demand will
increase, believe it will be by 1-5%

Total decreased = 64%

Total increased = 28%

Q. How do you expect demand in the chemical sector to change over the next 12 months?
15


Over a third of respondents believe that the level of full time employment in the
chemical sector will decrease by 6–15% in the next 12 months. Only 8% expect the
level to increase



Q. How do you expect the levels of full-time employment in the sector to change over the next 12 months?
16


In terms of still being employed within the chemical sector in 12 months time
confidence is relatively high, with 89% believing they definitely or probably will be

Total „yes‟ = 89%

Q. Do you expect to still be employed within the chemical sector in 12 months time?
17


21% do not expect debt defaults from any of the company types listed. Those that
expect some debt defaults most commonly expect them from major customers

Q. Do you expect any debt defaults / Chapter 11 / bankruptcy filings over the next 12 months from the
following types of organisations?
18


Around half of the respondents believe that M&A / divestment activity will slightly
increase in the chemical sector over the next 12 months



Q. How do you expect mergers and acquisitions / divestment activity in the chemical sector to change over
the next 12 months?
19


Cash flow is rated as the most important performance metric at the moment. 44% feel
that people turnover is a low level performance metric for their organisation

Q. Please rate the level of importance of each of the following performance metrics for your company at the
moment?
Base: all respondents (various)
20


In total, 59% of respondents identified that their company‟s working capital has
decreased since this time last year



Q. How has the level of your company's working capital changed since this time last year?
21


Three quarters of respondents report that their organisation‟s level of demand has
decreased over the last 6 months



Q. How has the level of demand changed for your company over the last 6 months?
22


Around a third of respondents‟ organisations have taken none of the actions listed to
manage output over the last 12 months. 30% have introduced short term shut-downs
for additional / accelerated maintenance

Q. Which of the following actions has your company been using to manage output over the last 12 months?
23


38% of respondents report that 1-20% of the asset capacity is currently excess to
demand

Q. What percentage of your asset capacity is excess to demand at the moment?
24


Around a third of respondents believe that none of their suppliers are at risk from
interrupting supply, however 41% believe that 1-10% of their suppliers are at risk

Q. In terms of supporting at-risk suppliers and securing long-term delivery, what percentage of your suppliers
are at risk of interrupting supply to you?
25


20% of respondents are renegotiating terms with more than 25% of their suppliers

Q. What percentage of your suppliers are you renegotiating terms with?
26


22% of respondents rated segmenting clients‟ supply chain needs as having a high
importance for their organisation

Q. In terms of changing your customer offerings, please rate the level of importance of each of the following
customer-focused activities your company is pursuing at the moment?
27


Over a third of respondents rated changing the level of sales calls / customer touches
as having a high level of importance for their organisation at the moment

Q. Please rate the level of importance of each of the following customer-facing activities your company is
using at the moment?
28


Over half of respondents are not scaling back on their R&D / innovation investment

Q. Is your company scaling back on its investment in R&D / innovation?
29


Just under two thirds are planning to bring new innovations / products to
market more quickly

Q. Does your company plan to bring new innovations / products to market more quickly?
30


The most common employment action taken is to freeze basic pay, followed by a
permanent reduction in the headcount of full time employees

Q. With regards to people and employment, which of the following actions has your company taken?
31


60% agree that the chemicals industry is a worthwhile sector for employees to enter.
38% disagree strongly that the actions being taken by their company are detrimental
to the long-term viability of the business

Total disagree = 48%

Total disagree = 45%

Q. To what extent do you agree or disagree with each of the following statements?
32


Just under half of respondents expect the downturn to last until the end of 2009

Q. Approximately how long do you expect the downturn in the chemicals sector to last?
33


Almost all believe their company will survive the downturn and the remaining 8%
don‟t know

Q. Do you think your company will survive the downturn / crunch?
34


• Key findings

35


Key findings
• For the majority of respondents‟ organisations demand has decreased over the last 6
months and around two thirds of respondents expect demand in the chemical sector to
decrease over the next 12 months

• Over three quarters expect the level of full-time employment in the sector to decrease,
although the majority of respondents feel they will still be employed in the sector in 12
months time and 60% of respondents feel the sector is worthwhile for new employees
to enter

• Over half of the organisations are not scaling back on their R&D investment and over
half of the respondents plan to bring new innovations to market more quickly

• The most common employment action taken is to freeze basic pay

• Respondents typically expect the downturn to last until the end of 2009 or to the middle
of 2010 and almost all believe their organisation will survive it.

36


What are we offering?

Reed Business Insight provides business market expertise through
innovative research solutions

We can help you gain a valuable insight into your market place allowing you
to make informed business decisions

38


Why work with Reed Business Insight?
 Reed Business Insight is the independent market research division of Reed Business Information
which provides business market expertise through innovative research solutions

 The close relationship with market-leading brands gives us the ability to reach specialist segments of
our extensive database of business decision-makers via a range of research techniques

 Our team of market research professionals have a wealth of experience across different business
markets and can help you gain a valuable insight into your market place, allowing you to make
informed business decisions and keep you one step ahead of your competitors

 Through our market-leading brands we can also provide access to research on industry trends and
market intelligence within business markets

 All research commissioned by clients is undertaken on a strictly confidential basis

 The Reed Business Insight team believe passionately about the services we offer clients and take
great pride in the research that we undertake to make sure that it is reliable, cost effective and
actionable

 We are a friendly team that we hope you‟ll enjoy working and discussing your research findings with

39


What do we provide our clients?

 Invest time to understand your company & listen to your business requirements

 Recommend the most appropriate research solution for your business

 Develop a clear proposal so you know exactly how the project will work

 Formulate a questionnaire or discussion guide to give you the insight you need

 Source a sample from our extensive databases of business decision-makers

 Manage the research programme and communicate progress of the project

 Analyse the data in order to interpret what the results mean for your business

 Present the findings with clear recommendations and actions

40


What are our values?

Passionate about research
We are an honest team that enjoy working in research and take pride in our projects

B2B experts
We have an in-depth knowledge of business markets and understand industry language

Independent professional service
We focus on flexible solutions through a reliable and professional service

Voice of the customer
We provide an insight into the minds of business users and end customers

Actionable results
We deliver meaningful findings and recommendations that can help businesses to grow

41


Meet the project team
Diane Lewis, Head of Market Research. After graduating in Statistics from Bath
University, Diane gained her first business-to-business research experience at BUPA. She now
has 15+ years experience in research & is a full member of the Market Research
Society. Diane is responsible for directing a high performance Research team and works across
the whole portfolio of business markets, specialising in Property, IT, Road Transport & Travel.
Tel: +44 (0208) 652 8065, email: diane.lewis@rbi.co.uk

Dan Hopper, Research Manager. Dan has over 9 year‟s research experience. Initially working
with Ipsos Mori and two specialist agencies he has particular expertise in online research
methodologies, including panels and remote usability testing. Since joining Reed Business Insight
in 2007 he has worked across a range of markets including social care, personnel and travel. Tel:
+44 (0)20 8652 8192 email: dan.hopper@rbi.co.uk

Kevin Puttock, Senior Research Executive. Since graduating in Marketing from the University
of Plymouth, Kevin has gained several years research knowledge across the
IT, science, property and financial sectors. Kevin first gained market research experience at The
Research Factor. Tel: +44 (0208) 652 3742, email: kevin.puttock@rbi.co.uk

Jan De Iulio, Key Account Manager. Jan will be your first point of contact and will help to identify
your information requirements and guide you through the research process ensuring that any
work undertaken fully meets your business objectives. Jan has worked in media and provided
customers with marketing solutions for 20 years. Tel.+44 (0208) 652 8564, email:
jan.de.iulio@rbi.co.uk
42


What research services do we offer?

Brand Perception
What do people
think of your brand?
Customer How do you Ad
Satisfaction compare with Effectiveness
How do you ensure your How much ROI is
customer retention? competitors? your campaign
How do you promote providing?
repeat purchase? What is the impact
of your ads?

Web site
development INSIGHT Buyer Behaviour
What factors drive
What do you want to
purchasing decision?
achieve through your
What makes clients
website?
Market choose you rather than
Structure another supplier?
Product Are there any
Development opportunities
How do you align to increase
your customers' market share?
needs to your R&D? Do you have any
competitive
intelligence?

43


We can help you to understand…
 The market‟s awareness and perception of your brand in order to differentiate yourselves from
competitors and track market leader performance

 The impact of your advertising campaign on the awareness and perception of your brand so that
you can more effectively target your marketing communications

 Your customer‟s buying cycles and purchasing habits so that you can better serve your existing
customers and influence the opportunities to become the supplier of choice

 The structure of your market in terms of value, volume share, pricing & distribution so that you can
determine market trends, pinpoint untapped market share and establish opportunities for market
entry and growth

 Reactions to your innovation concepts in order to develop products and services in line with
customers‟ needs and maximise the success of new market launches

 Who is using your website and how the site performs in terms of usability so that you can enhance
the user experience and increase traffic and length of visit per user

 Customer opinion of your services, their experiences and likelihood to recommend so that you can
monitor and improve customer or staff loyalty measures

44


What methodologies do we use?
We handle a full spectrum of projects and methodologies

 Quantitative  Mail
 Qualitative  Phone
 Bespoke  Face-to-face
 Multi client  Online

45


46


Terms & conditions
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terms of business and shall be governed by and construed in accordance with the Law of England. The parties submit
to the exclusive jurisdiction of the English Courts.
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the Services are the property of the Client and the Company shall keep confidential the content of all Work Product and
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the relevant trademark
47


Terms & Conditions
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48

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