As promised yesterday, the blog looks today at the impact of today’s high prices on oil consumption growth. As the chart, based on BP data shows, the ‘easy money’ policies of the central banks have only partially mitigated the impact of the oil price rally since 2009. Consumption growth has not fallen to the 0.8%/year level […]
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Wall Street analysts have their bonuses to consider at this time of year. So it is no surprise that they are talking up the prospects for the Christmas season – the peak shopping period of the year in the West. But those involved in shipping goods don’t see the same rosy picture: • In August, […]
Yesterday’s Scenarios hopefully provided valuable insight into the challenges ahead for companies and individuals. They also suggest some Critical Success Factors for achieving a successful transition to the New Normal, as set out in the chart above: 1. Flexibility. This involves adapting to new circumstances and being willing to compromise rather than battling for an […]
The transition to the new Normal is likely to be painful and long-lasting. Future demand growth will be slower as the ageing Boomers spend less and save more. More regular and deeper recessions are likely to become a feature of the global economy once more, in contrast to the relatively smooth growth seen during the […]
Today’s economic situation is getting worse, not better. The blog believes this is because most policymakers still refuse to accept the wisdom contained in the Beatles’ ‘When I’m Sixty-Four’ song on their iconic Sgt Pepper album. The Western BabyBoomers (those born between 1946-70) are the largest and richest generation that the world has ever seen. […]
The chemical industry has a turnover of $3.4trn, and is the world’s 3rd largest industry. It matters to the global economy. Many of its leaders are about to meet next weekend in Berlin for the annual European Petrochemical Association (EPCA) meeting. The blog strongly believes that this should not be seen as a ‘business as […]
Next week, the blog publishes Chapter 5 of its ‘Boom, Gloom and the New Normal’ eBook, co-authored with John Richardson. This looks in detail at the major changes taking place in demand patterns as the BabyBoomers (those born between 1956-70) enter the 55+ age group. This cohort already includes 272 million people, 29% of the […]
Many readers have been taking a well-earned break over the past few weeks. The blog also continues to gain large numbers of new readers, as the financial crisis intensifies. As usual, therefore, it is highlighting key posts during August, to help you catch up as you return to the office. Boom/Gloom Index suggests markets on […]
Crude oil and commodities markets have lost touch with the fundamental realities. This didn’t just happen yesterday, but began a decade ago. That’s the argument put forward by my co-author, John Richardson, in the latest chapter of our new free eBook, ‘Boom, Gloom and the New Normal – how the Western BabyBoomers are changing chemical […]
The blog is delighted to announce the title of its new eBook, jointly authored with fellow blogger, John Richardson. It explains how Western BabyBoomers are changing chemical demand patterns, again. We believe it will become vital reading for all those working in the global chemical industry. The first chapter of the book will be published […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such as oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.