The recent Chem Show Business Outlook Survey distributed to professionals across the Chemical Process Industry (CPI), including chemical and processing manufacturers, equipment suppliers, engineers and plant managers, indicates growth in business prospects and sales throughout 2019. According to survey results, 76 percent of respondents expect to experience sales growth in the coming year, with 81 percent rating the 2019 business climate as good or excellent.
“We design the survey to reach a true sample of both processing manufacturers and equipment suppliers in an effort to garner a true reflection of business potential across the entire CPI,” said Clay Stevens, manager of the Chem Show. “It’s encouraging to see that those we recognize as leaders of innovation with both products and technology are confident that this is a year of growth for the industry. We look forward to seeing this reflected on the Show floor in October.”
The survey included five questions pertaining to sales, including those in previous years in comparison to projections for 2019 expectations of sales growth. The survey was distributed at the close of 2018 and gives us a first look into what the overall expected business outlook will be throughout CPI and at the Chem Show in October.
When asked to rate overall industry business prospects heading into 2019, 96 percent of respondents reported positive projections. Of these responses, 23 percent answered “excellent,” 58 percent responded “good,” and 15 percent responded “fair.” Only three percent responded with poor projections. These numbers indicate an increase from our last survey, conducted at the close of 2016, with more than a 12 percent increase in “excellent” business forecasts.
Of the 76 percent of respondents that specified an increase from 2018 business prospects, 56 percent expect to experience growth of more than 5 percent over last year. A total of 19 percent expect business to remain steady at the same rate.
Additionally, the survey indicates an increase in capital investments across the CPI with regard to new or upgraded equipment purchases expected in 2019. Half of those surveyed (50 percent) responded with their intent to invest in equipment in the coming year. Twenty-five percent were not yet sure if they will require new equipment or upgrades for 2019.
When asked about potential trends or issues that could have an impact on the CPI, respondents replied most frequently with concern over increased tariffs or volatile global trade. Despite these concerns, respondents are optimistic for business prospects, even reporting opportunities for growth in new industries such as new specialized coatings and hydroponics.
Recognized as the CPI’s largest North American event exclusively focused on the processing of fluids, powders and gases, the biennial Chem Show returns to the Javits Center in New York City to showcase the newest innovations in chemical process equipment and technology. Since 1915, the Chem Show has brought together processing engineers, plant managers and other CPI professionals from the CPI’s leading companies to see the latest equipment and discover new ways to optimize their plant operations. Interested attendees can register now on the Chem Show website registration page.