Manufacturers Focus on High Performance Plastics and Specialty Chemicals

Specialty chemicals are designed to have specific properties that can be applied to particular needs. These chemicals can generally be categorized in a handful of segments, including: cleansers (for both household and industrial use), construction chemicals (such as adhesives), chemicals for electronics (chemicals used in the production of integrated circuit boards), pesticides (for agricultural, residential and commercial use) and specialty polymers (such as high-performance plastics). The specialty chemicals market is difficult to serve. It typically requires a significant investment in research and development to enter this sector, while input costs can be high thanks to fluctuating crude oil prices. Once a manufacturer has developed a specialty chemical to the point that it is ready for commercial use, a significant marketing effort may be required to create demand for the new product. Meanwhile, more competitors have entered this specialty market, attracted by the potential to earn higher profit margins than they might earn on basic chemicals.

The end customer for specialty chemicals is changing as well. Some buyers of specialty chemicals have engineered ways to alter their manufacturing methods so that they rely less and less on costly specialty items, and more on basic chemical feed stocks.

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Manufacturers Focus on High Performance Plastics and Specialty Chemicals, Business and Industry Trends Analysis

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