While these deals can help distributors grow quickly in North America, and increase their coverage area for suppliers, they also present the challenges inherent in any acquisition. U S Chemical takes time to listen to their distributor partner to ensure market needs are met. Regional distributors tend to do well in product expertise, supplier collaboration, and value-added services for customers. For example, Brenntag acquired HCI, and the company that later became Univar acquired Ellis & Everard. In addition to focusing on a central anchor-product component for skin care products, for example, a distributor could become an expert in the entire skin-care niche and handle all the chemicals that a manufacturer would ultimately need. Gaylord Chemical can provide product samples to qualified users of chemical products. By Adam Rothman, Christopher Moxon, Andrew Taylor, and Udo Jung. Request a … For example, a clear set of soft and hard targets gives distributors definitive objectives to hit. Our extensive primary research thus indicates a higher incidence of third-party distribution in North America today than was observed or assumed in earlier analyses. (BASF in Europe is a notable exception. Similarly, distributors need to carefully manage their brand elements. In the US, there is some evidence that suppliers are looking for distributors that serve the entire country, but thus far few have established that kind of footprint. Instead, they are looking one level deeper, at sales force productivity; using hard metrics, such as sales volume; and analyzing leading indicators, such as contacts with customers, the size of the pipeline, and related data. Address: 10 Power St, Isando, Gauteng, 1600, South Africa, Kempton Park. Large downstream industries include consumer products, rubber and plastic products, health care, agriculture, semiconductors and electronics, … In addition to outright acquisitions, they should also consider options such as partnerships and joint ventures. Size and scale will become increasingly important in the specialty-chemical-distribution landscape. Cachat, a super regional that has a presence in roughly 30 US states. It's a name with 50+ years of experience under its belt. In...More››, +1 215 957 1234www.gehring-montgomery.com, GEHRING-MONTGOMERY INC. is part of the TER GROUP of companies, an international distributor and trader of chemical raw materials. BCG was the pioneer in business strategy when it was founded in 1963. 4512553 (England), © 2018 Chemagility Limited. Both have an asset-light business model that emphasizes technical sales, strong partnerships with leading chemical companies, and a fully outsourced supply chain. RC Chemical Lab-RC Chemical Lab is located at Atlanta GA in Georgia, USA . Chemical Distribution Solutions LLC offers unique solutions to our partners in the sales, marketing, and chemical logistics across North America. Find an Epoxy Distributor Hexion is a global supplier of epoxy resins, curing agents and modifiers with a worldwide distribution network in the Americas, Europe, Middle East … In the first few years of the 2000s, a handful of Europe-based full-liner distributors acquired distribution companies in the US. In this way, the distributor can erect substantial competitive barriers in the market for that product. See, for example, North American Chemicals 2020: Capturing Opportunities in the Revitalized Industry, BCG report, July 2015; The 2013 Chemical Industry Value Creators Report: How 20 Years Have Transformed the Chemical Industry, BCG report, May 2014; and Specialty Chemical Distribution-Market Update: Strategic Imperatives for Suppliers and Distributors, BCG Focus, April 2014. Indeed, third-party distribution accounts for more than 80% of the sales for specialty agricultural chemicals. However, the market is becoming more dynamic because of frequent acquisitions and a shift toward strategic distribution partners. Company No. U.S. Chemical & Plastics - better known as USC - is the name that collision repair professionals know and trust. (See Exhibit 3. It ends BASF’s 12-year streak as the largest chemical company in the world, but DowDuPont then split into three separate firms—Dow, DuPont, and Corteva Agriscience—in early 2019. As noted above, some companies are choosing to operate multiple brands in a given market, while others prefer to consolidate their business under one unified brand. Find American chemical suppliers, distributors, industrial manufacturers, bulk supplies and wholesalers of raw ingredients & finished goods in the United States. Notes: Many larger, Europe-based distributors pursue such a vertical-market approach, and it works especially well on a regional level. by market sector), upgrade to Premium membership here. (See Exhibit 2.). In a competitive marketplace you need products that stand out from the crowd that provide the lowest cost to serve. Consider your current chemical supplier. Increasing consumption of chemicals across end-use industries such as construction, pharmaceutical, polymers and resins coupled with high complexity in reaching the customers is likely to drive the opportunities for chemical distributors over the coming years. In addition, the share of third-party distribution of specialty chemicals—rather than the sale of products directly to customers by suppliers—has grown faster still. ICIS is pleased to present its 10th annual ICIS Top 100 Chemical Distributors listing. April-June 2019 | Chemi Cal Distributor | 29 1 Sinochem Plastics 3,040.0 2 Tricon Energy 2,931.0 3 Brenntag 1,584.9 4 Helm 945.1 5 Behn Meyer Group 803.0 6 DKSH Holding * 618.6 7 Redox 517.0 8 IMCD 415.8 9 Univar Solutions 393.0 10 ICC Chemical 372.4 11 Pluschem EEIG 350.0 12 Jebsen & Jessen Group 332.2 13 Manuchar 329.0 14 Pon Pure Chemicals Group 328.4 15 TOP … Because sales growth is so critical, suppliers no longer use only basic metrics, such as the number of sales reps that are covering a region, to assess the sales capabilities of their distribution partners. Find Chemical Distributors Anywhere. Cachat at $286 million (or slightly less than the company’s 2014 revenue of $300 million), and it gives IMCD a strong and growing platform for expansion into the US. First, they can establish anchor products in specific industries. 7500+ companies worldwide approach us every year for their revenue growth inititatives. The coatings, adhesives, sealants, and elastomers (CASE) segment has benefited from sustained construction activity that has been driven by a continued recovery in the housing market. These distributors define product baskets for certain verticals (such as HPC) across all of Europe, and their experts for the industries and applications work regionally rather than in individual countries. But because the US represents 80% of the North American chemical-distribution market, we use the terms “US” and “North America” interchangeably, except where specifically indicated. A directory of where to buy chemicals in the USA. Yet the market for specialty chemicals is growing even faster. Customers in these markets also frequently require value-added services, such as mixing and reformulation, storage, and logistics. The response to both deals from competitors, suppliers, and equity analysis has been positive, and we believe that similar deals could happen soon. For example, Brenntag and Univar both operate worldwide, though they tend to focus on commodity chemicals—in both sourcing and distribution—in Asia. Cachat excels in technical sales of specialty chemicals, particularly in the coatings, plastics, construction, advanced-materials, and food segments. This year’s global listing is ranked by 2018 sales. But because the US represents 80% of the North American chemical-distribution market, we use the terms “US” and “North America” interchangeably, except where specifically indicated. With headquarters in Ohio, M.F. They should also structure the right incentives for sales staff and managers, and—when required—embed people within the supplier’s own sales team to share customer insights and technical data. Company No. Box 10763 2727 NW Industrial St. Portland, OR 97296 U.S.A. (See Exhibit 4.). Manage brands effectively. Established in 1953, Chemical Distributors Inc. is a supplier of a range of industrial equipment and chemicals. Invest in sales-force-effectiveness programs. To view 100% of the total chemical distributors listed and use filters (e.g. It's the name you go to for everything from masking and papers, to lightweight and premium body fillers, hardeners and even Euro … For example, Univar has made a number of service acquisitions in the US, including a warehousing company called Fort Storage as well as Mini-Bulk, which helps manufacturers more effectively handle hazardous products. In the US, which represents more than 80% of the North American chemical market, there are clear growth trends in the South and the Midwest, where chemical customers increased their manufacturing capacity from 2011 through 2014. We believe that, in the near term, transatlantic operations will become more common for specialty chemical distribution, given the many similarities between the US and European markets. Find Chemical Manufacturers Distributors in Us on Hotfrog. We also expect that the specialty market will pick up in line with this increased momentum and grow at an annual rate of approximately 4% through 2020. Get reviews and contact details for each business including phone number, postcode, opening hours and photos. Conduct strategic acquisitions. Boston Consulting Group is an Equal Opportunity Employer. Accordingly, distributors should build up their internal expertise when scanning for potential M&A targets and when closing and integrating deals. European distributors are also further ahead than their North American counterparts in expanding their efforts to operate in multiple regions. Company Policy. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity / expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws. Chemical Distributors, Inc. P.O. Now, check out all the smart reasons to work with U.S. Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact. Chemical Distributors, Inc. P.O. Together with DIC, Sun Chemical has annual sales of more than $7.5 billion and over 20,000 employees supporting customers around the world. Petrochemicals, IMCD’S ACQUISITION OF M.F. … 1 But regionals grew several percentage points faster during the same period—at 6.3%. Renewed manufacturing in the US and strong construction activity—particularly in housing—have led to increased demand overall. For suppliers, the objectives are to develop a clear business case for outsourced distribution, evaluate and select distributors accordingly, and manage them as true strategic partners. The shift toward third-party distribution is fairly consistent across major verticals: CASE, HPC, and industrials. Search over 7179 chemical, ingredient and raw material distributors around the World Us Chemical Distributors, Us Chemical Distributors Suppliers Directory - Find variety Us Chemical Distributors Suppliers, Manufacturers, Companies from around the World at chemical equipment machine ,foam chemical ,inorganic chemical, Cashew Nuts Distributors are seeking to expand in order to provide better coverage across the country, fill in gaps in their portfolios, and become strategic partners. Overall, it grew at an annual rate of 2.4% from 2011 through 2014, while the commodity segment of the industry grew at a slightly slower pace: 2.2%. Please contact us if you need assistance. Although a few differences do exist among the North American, European, and Asian chemical markets, some distributors are establishing global operations. Suppliers need to analyze their current cost to serve for customers, including factors such as logistics, freight, and warehousing. We drew from a wide variety of primary and secondary sources to analyze the North American specialty-chemical market. The specialty chemical segment, however, grew significantly faster, at 3.5% per year. As distributors seek the right response to the evolving North American market, they should focus on several priorities. Increasingly, strategic selling partnerships between suppliers and distributors are moving away from more casual understandings and becoming formalized; distributors will need to manage these new types of agreements—and address exclusivity issues—when partnering with companies that have overlapping interests. ABOUT US. Cachat as a platform for growth in North America, and leveraging IMCD’s strong M&A capability. Consolidation is happening among larger companies as well, increasingly among global players that are buying regional distributors in the US. These so-called super regionals have specialists for individual segments and countries, but they manage products throughout Europe. Local distributors focus on a narrow niche in a small geographic area and usually offer limited product lines. Notes: Top Market Reports . Suppliers do indicate some willingness to change distributors on the basis of price, but given the cost of switching, the incentive must be significant—10% to 20% lower than the cost of working with the current distributor. Among the experts we spoke with, only 5% said that they switch out at least one distributor annually. The manufacturers, distributors and service companies listed in our extensive directory offer a wide range of chemicals, chemical compounds, metals and alloys for all applications, from medical to industrial use. 503-243-1162. customerservice@cdipdx.com. We have also detailed current trends in distribution from the perspectives of suppliers and distributors, and highlighted increasing changes with respect to global business models. The company has an internal distribution unit that competes for business with external distributors.). Some distributors may manufacture chemical products. Their main business regions are Algeria,… Read More Maroon Group HOME Once the relationship between a supplier and a distributor is well established, switching out is rather rare, because the cost of such a change—in terms of both time and money—can be substantial. On the sales front, companies have been investing in sales force efficiency and technical-excellence programs, particularly among global distributors in the past two years. And financial incentives, such as rebates and volume awards, can encourage distributors to help suppliers hit their financial and operational targets. In addition, we adapted the definition of specialty chemicals to incorporate business practices in the North American market. Quite simply, the largest players with the best execution will win. . They are Distributors, Exporters, Manufacturers, Suppliers, Wholesalers etc. DowDuPont tops the list for the second and last time; it is splitting into Dow, DuPont, and Corteva this year. Few suppliers in either market have distribution subsidiaries; those that used to have such subsidiaries in the past have mostly sold them off to focus on core manufacturing capabilities. 4512553 (England). (See “Methodology.”) Through this analysis, we generated a clear picture of the North American market that defines future prospects for growth and identifies promising segments. Specifically, global full-liner companies posted a compound annual growth rate of 3.8% from 2011 through 2014, while local players grew at 3.6%. Chemicals, A Woman-Owned Business. And if a supplier chooses to establish an internal center to manage distribution across the entire portfolio of channels, then the supplier should clarify the center’s responsibilities and mandate within the organization, along with the method by which the center will interact with business units. Not only do we wish to provide you with excellent quality chemical products, but also hope to improve the bottom line of … It also requires setting up the right information-sharing interfaces with distributors, supported by underlying technology. In some cases, regional companies have acquired local distributors and small regional players. H… © Boston Consulting Group 2020. Distributors . This approach can help manage exclusivity agreements that are already in place with suppliers. The global chemical distribution market size was valued at USD 239 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of5.3% from 2020 to 2027. 800-669-1082. These distributors can also bundle inventory and distribution for multiple customers, which is more efficient. Regional distributors have a footprint sufficient to cover one of the four main geographic territories in the US—the Midwest, the Northeast, the South, or the West. The top five global specialty distributors (including Brenntag, Univar, and Nexeo) have done more than ten deals with US companies in the past four years. CACHAT COULD SIGNAL MORE TRANSATLANTIC DEALS. We spoke with more than 50 experts across the US chemical market, including suppliers (especially those with well-established, third-party-distribution-management practices), global and regional distributors, and a cross-section of specialty customers to identify trends and best practices. Over the past five years, The Boston Consulting Group has published a series of reports on the chemical distribution industry2 How Suppliers Should Respond to the Changing Landscape, Given the changes under way in specialty chemical distribution, suppliers that serve the North American market should focus on three objectives. (See Exhibit 1.). Specialty Chemical Distribution in North America. IMCD, which is based in the Netherlands, has been growing rapidly during the past several years, both organically and through acquisitions. The trend toward third-party distribution of specialty chemicals will continue—with projections for annual growth of 4.5%—leading to a larger gap between overall specialty growth and the share of volume that goes to customers through third-party distributors. The industrial segment experienced robust growth because of vehicle manufacturing. As a result of consolidation, suppliers are forging closer relationships with a handful of strategic distributors. Accordingly, distributors have been investing in these capabilities through acquisitions. Either approach can work, but each distributor needs to adopt the right approach for its needs, especially given the coming period of consolidation. Specialty chemical distributors can meet those requirements in two ways. U S Chemical 316 Hart Street, Watertown, WI 53094 © U S Chemical 2020. of various chemical items. There is clear alignment between the two companies. The specialty chemical market for agricultural applications posted slightly slower rates of growth because of a slowdown in the pulp and paper market and reduced government spending on vegetation management for road and rail applications. Some distributors choose to maintain separate brands for individual regions under a central management structure. All rights reserved. 30000 High Growth Opportunities. Lipscomb Chemical Company, Inc. Long Beach, United States. Such internal expertise is needed in Europe because of the complexities in managing distributors across many countries and jurisdictions. Counterpoint Trading 512. … Some suppliers have gone a step further and established internal distribution centers that coordinate and oversee distribution while also providing advice to business units. It may be more efficient for suppliers to reach some customers by using their own internal sales staff. Brenntag, for example, generates new revenue through its existing sales force and thus reduces sales, general, and administrative costs even as it grows. Today, we included specialty agricultural chemicals and certain industrial chemicals in our analysis dedicate technical and sales data appropriate. In our analysis share best practices, but they manage products throughout Europe includes configuring pricing and rebate structures steer! 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