2019 Year-end survey of business conditions – industrial chemicals
Each year the Chemistry Industry Association of Canada (CIAC) conducts a survey of its members for their thoughts on the year’s operating environment. Responses to the survey are combined with analysis of major trends in the global industrial chemistry industry to create a report of the previous year’s performance and offer guidance on the opportunities and challenges for the sector in the year ahead.
For 2019, it is estimated that year-end sales of industrial chemicals will be down 5% compared to 2018 at $28.4 billion. Using constant-dollar shipments as a proxy for volume, production volumes will rise by about 1% for the year. This indicates that, on an aggregate basis, selling prices decreased over the year, resulting in lower dollar sales from essentially the same volume of production. This estimate from members aligns with a trend that the CIAC has observed throughout 2018. The most recent quarterly statistics show that, on a dollar basis, shipments of industrial chemicals have declined 3.9% so far in 2019, with a particularly stark drop occurring between Q2 and Q3 2019, where shipments fell by 12.3% from the preceding quarter.