Chemical outsourcing trends

Even without the current outsourcing trends, it has always been difficult for service companies to find sufficient numbers of well-trained, experienced, and motivated field representatives. This is because the range of water treatment problems and potential solutions are very wide and the business involves the marketing of many different types of chemicals and equipment, coupled with consulting work and innovative trouble shooting. 

Pine Chemicals, Sifting for Gold (2001) (e.g.) Global healthcare equity research. Pharmaceutical Outsourcing Trends (e.g.)... 

In the future, the outsourcing trend based on chemical producers strategic focus on core businesses and efficiency considerations is expected to continue in line with the increasing geographical coverage and availability of professional distribution services. 

Buyers may use outsourcing as much as possible. This is a modem trend (or perhaps it merely seems so) and often finds favor. Also, buyers may require additional labor services or may relinquish much of the day-to-day water treatment work normally accepted as an in-house function and pass over to water treatment service company contractors. This may include functions such as the disposal of empty chemical drums, chemical tank fillup, or equipment hookups. Such service-oriented contracts are fine, but the buyers cannot totally abrogate all control and have to take responsibility, in the final analysis, for policing their own contracts. 

Distributors with sufficient financial resources, geographic scope and/or knowhow could benefit from these three trends and offer both chemical producers and customers significant value by handling outsourced business and services in a cost-efficient and market-effective way. 

Three interrelated trends of globalization among chemical producers and customers, increasing QHSE (quality, health, safety, and environment) standards, and outsourcing by the producers and customers are currently shaping the chemical distribution industry, offering distributors considerable opportunities for competitive differentiation. 

Globalization has been a key trend in the chemical industry for many years, with regard not only to business with suppliers and customers on all continents, but also to operations. The shift of production to the Far East and business process outsourcing to India or Eastern Europe are only the latest examples of this trend. 

The increasing trend to outsource the manufacturing of active ingredients and intermediates in life science companies has led to a drop in the number of chemical engi-... 

In the area of engineering in the chemical industry there is a general trend towards outsourcing, as this is no longer regarded as a key function and can be purchased on the open market. However, this only applies where the core competencies of a company are not affected. Particularly with regard to so-called front-end engineering,... 

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