McKinsey on Chemicals, Number 5

Long considered a cornerstone of chemical industry growth, innovation's contribution has been questioned as parts of the industry have become commoditized. We show that chemicals innovation continues to deliver attractive returns, and describe three approaches to further improve innovation returns.

Successful supplier collaboration and streamlining the supplier qualification process can provide new opportunities for chemical companies, both in their roles as suppliers to OEMs and other major consumers and in their relationships with their own suppliers.

To drive further profitable growth in the increasingly competitive China market, international chemical companies should focus on five areas.

The region’s producers are entering a world of limited new gas supply. To continue to grow at home and remain competitive, big changes will be required.

Chemical companies' supply chains are increasingly under strain. Strengthening supply-chain capabilities can improve results and provide a competitive advantage.