Chemicals

March 18, 2025

'Right'-shoring key to navigating changing markets, political landscape

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HIGHLIGHTS

Flexible supply chains enable swift response to demand fluctuations, challenges

Chemical industry resilient, adapts to create opportunities amid disruptions

This content is part of the WPC 2025 series, in which we explore key themes from the 40th annual World Petrochemical Conference.

As supply chain logistics form a greater part of chemical companies' strategic planning, "right"-shoring strategies should take the place of nearshoring or farshoring, Bob Patel, member of the board at oil services company Halliburton, said March 18.

While shifting geopolitics and tariff threats have made nearshoring to an extent "inevitable," Peter Huntsman, CEO of Huntsman said during a morning panel discussion at the WPC in Houston, others on the panel noted that in an industry with long and complex value chains, placing the right elements of logistics in the right place could be better strategic thinking.

This approach requires flexible supply chains that can swiftly respond to fluctuations in demand and unforeseen challenges.

However, Patel added that transitioning from current export-oriented dynamics in China, for example, remains a persistent challenge for the chemical industry.

Despite disruptions, panelists expressed an optimistic perspective when discussing the industry's resilience during challenging times.

"The chemical industry continues to create opportunities and adapt during despite disruptive periods," Huntsman said.

Looking ahead, the panelist mentioned that India and Africa will play a significant role in global trade flows, as the market gradually shift dynamics from the current supply and demand imbalance.

"Africa will certainly be prominent in the next 40 years," Patel said. "But in the next five years? It is difficult to tell."


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