According to the American Chemistry Council, chemical products are found in 96% of manufactured goods. This translates to the fact that the global economy would be practically impossible to operate without this industry.
As a result, a sector with such broad economic exposure will be impacted by both the immediate and long-term effects of the virus’s proliferation and the resultant COVID-19 infection. The impact, on the other hand, will be far from uniform across the whole industry.
The chemical industries also faced an unplanned pivotal point in 2020. The combined consequences of the COVID-19-related economic downturn and the oil price drop echoed throughout several industries, which were already dealing with difficult long-term trends.
The changes adapted in the industry were observed from two prominent perspectives to understand the depth of the situation i.e. the operations and the organizational structure.
Operations
The recurring COVID-19 waves and simultaneously mutating virus have drastically changed organizational operations in the industry in the following ways:
- Meeting environmental, health, and safety constraints, which are largely influenced by increased concerns about operating during a pandemic.
- Getting used to large volumes, price drops and end-use demand variations.
- Following the crisis, restructuring product portfolios and processes to meet new customer needs, such as the implications of global economic stimulus. Innovating to expand into new markets.
- Tuning asset-intensive, integrated manufacturing systems that don’t have the flexibility to change product sources to meet changing demand. Consider new ways to manage assets, such as forming alliances and repurposing products.
- By incorporating feedstock flexibility, automation/robotics/AI/advanced computing, and supply chain possibilities, conventional advantages need to be adjusted.
- Managing assets and altering investments. Industrial calibration considerations are driving changes in industrial consumer geographies while trying to meet circular economy challenges
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Organizational Structure
The structure of organizations underwent significant changes to accommodate the need of the hour and allowed for changes that are aimed at significantly improving the industry on a holistic level.
- Employee safety was being ensured through the use of two-way communication channels and platforms.
- During the lockdown, companies that did not have a fully digital marketing and sales capability upgraded themselves to gain traction with clients.
- Employees need remote access capabilities for enterprise-wide business continuity.
Functions that require a large number of people, such as business services, to be facilitated with additional backups. - Intelligent automation, robotics, and remote control were all used in safe asset operations.
- To limit the impact of the quarantine on shifts, critical scenario modeling, shift planning, and agile team setup were implemented.
- To triage and respond quickly, program management capabilities, infrastructure, and processes needed to be implemented quickly.
- Morale will be boosted by continued participation and communication. Taking on additional social responsibility initiatives to aid communities where COVID-19 has had a significant impact.
- Using all of the capabilities of digital technologies to communicate and collaborate with employees, customers, suppliers, and other stakeholders.
The subsequent phase after COVID-19 crisis should conduct an evidence based audit of crisis mitigation and productivity. The health crisis has provided us a chance to reset the future, allowing the chemical industry to proactively re-evaluate business models and plan growth.
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