Chemical Distribution 2023 Economic Outlook
NACD’s economic reports for December 2022 indicate that 2023 is likely to feel the impact of a recession (1). With high interest rates and increased consumer debt, chemical sales may be dampened if high users of chemical products are backing off purchases. With federal debt continuing to increase alongside interest rates, growth in the industry may be slowed or stagnated. In addition, energy and natural gas shortages are expected to impact prices across the board, especially in the petroleum sector. These factors, along with labor shortages and continued threats to the supply chain will all be things to watch in the coming year.
The American Chemistry Council (ACC) has a brighter forecast for the overall chemical industry, pointing to a record high in chemical trade in 2022 (2). While the ACC does expect chemical exports to drop in 2023, those reductions are likely to be made up over the next couple of years. Increases in US energy development and infrastructure, improvements in transportation policies, and reduction of regulatory bottlenecks could help maintain growth in the industry and prevent any major downturns.
With the global turmoil due to the pandemic, making economic predictions has become a more difficult task than in past years. With many factors impacting chemical distribution, there is much to keep an eye on in our industry in 2023.
For a list of ChemCeed products, visit https://chemceed.com/newsite/products/ or contact our team today at inquiry@chemceed.com.