Report highlights urgency to improve asset performance as global demand for chemicals skyrockets
PASADENA, TEXAS (October 21, 2021) – Pinnacle, the largest reliability analytics company in the world, released its Economics of Reliability Report for the global chemicals industry today. This report is the fourth installment of Pinnacle’s Economics of Reliability series, which also includes reports for the refining, water and wastewater treatment, and metal and fertilizer mining industries.
“The urgency to improve asset performance is very real in this sector of the global economy,” said Jeff Krimmel, Chief Strategy Officer at Pinnacle. “In addition to experiencing two consecutive years of declining revenues and profits, our analysis revealed that the productive asset base of some of the world’s largest chemical companies is stagnating, indicating the deterioration of asset productivity across the industry. As the global economy continues to recover from the initial shock of COVID-19 and the demand for chemicals skyrockets, facilities must find a way to generate more profit off of their existing machinery and equipment.”
Leveraging data from The World Bank and the United States Bureau of Labor Statistics, the report analyzes the reliability spend of 18 large, publicly traded chemical companies including Air Liquide, Dow, and LyondellBasell. Additionally, the report analyzes the economic value added by the chemicals industry on a country-by-country basis along with the impact of chemicals prices on the industry’s supply and demand dynamics. Pinnacle analysts estimate that the global chemicals industry spends about $236 billion annually on reliability-related initiatives, which is over four times what the mining and refining industries spend on reliability.
“The dynamic nature of the chemicals market has brought a heightened focus on the need to optimize reliability and asset performance,” said Ryan Sitton, Founder and CEO of Pinnacle. “As we’ve seen with current supply chain shortages around the world, the chemicals industry plays a critical role in the global economy. After years of reduced capital expenditures and diminished asset productivity, chemical facilities are struggling to meet the rapid increase in demand with their current assets, further exacerbating supply chain challenges. Reliability will continue to be a critical tool for these companies to navigate the current turbulent market and sustain long-term profitability.”
For more information or to download the report, visit pinnaclereliability.com.