R&D: Critical to long-term viability
This year, many CEOs are maintaining their focus on R&D, despite the challenging environment-evidence that they see new products or services as absolutely critical to the long-term viability of their companies.
CEO perspectives
 REN Jianxin
President, China National Chemical Corporation (ChemChina), China
Responding to the financial crisis
Executives in the chemicals industry take a longer-term perspective than those in other sectors, mainly because their industry is capital-intensive and yields long product lifecycles. Chemicals CEOs typically respond to periods of economic difficulty by reassessing the timing and allocation of capital investments, rather than by changing their business models.
Addressing global risks: The sustainability factor
Collaborating to address global and systemic risks is nothing new for the chemicals industry; it has already made considerable efforts to improve its environmental profile. Many companies, however, are now taking steps to reduce their dependence on carbon-based energy sources as well.
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Investing in staff
The chemicals industry is heavily reliant on the development of new products and ideas-and it is people who generate innovation, not systems or processes. Therefore, CEOs will have to be very careful about how they implement staff reductions.
The outlook for the future
Chemicals CEOs will have to ensure that they are addressing not only short-term risks, but also global, long-term, systemic risks such as climate change and shrinking natural resources. Business models in the industry will need to evolve. Chinese and Middle Eastern companies will buy into new markets or technologies, and almost all companies will need to adopt sustainable business solutions.
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