WEBVTT NOTE This file was generated by Descript 00:00:01.170 --> 00:00:05.460 Welcome to The Chemical Show, the podcast where Chemical means business. 00:00:05.910 --> 00:00:09.690 I'm your host, Victoria Meyer, bringing you stories and insights 00:00:09.690 --> 00:00:13.590 from leaders driving innovation and growth across the chemical industry. 00:00:14.550 --> 00:00:18.840 Each week we explore key trends, real world challenges, and the 00:00:18.840 --> 00:00:20.670 strategies that make an impact. 00:00:20.880 --> 00:00:21.720 Let's get started. 00:00:23.364 --> 00:00:24.564 victoria_3_09-22-2025_165151: Welcome back to The Chemical 00:00:24.564 --> 00:00:26.694 Show where Leaders Talk Business. 00:00:26.994 --> 00:00:29.424 It's the end of September, 2025. 00:00:29.454 --> 00:00:33.354 We are wrapping up the third quarter and getting ready to 00:00:33.384 --> 00:00:34.734 head into the fourth quarter. 00:00:35.004 --> 00:00:39.504 And you like other leaders across the industry are looking to finish strong. 00:00:39.872 --> 00:00:43.472 Close out what's been a rather tumultuous year and set 00:00:43.472 --> 00:00:46.292 yourself up for success in 2026. 00:00:46.682 --> 00:00:50.432 That's exactly what this episode is all about. 00:00:51.042 --> 00:00:54.582 I'm gonna be talking about the key themes heading into Q4 and how 00:00:54.582 --> 00:00:56.832 leaders can and should respond. 00:00:57.329 --> 00:01:03.179 This is the quarter where strategic discipline really differentiates those 00:01:03.179 --> 00:01:08.729 who are merely surviving to those who are positioning to grow into 2026. 00:01:09.249 --> 00:01:11.379 That's by the way side here. 00:01:11.439 --> 00:01:14.409 This is some of the things that we're gonna be discussing live and 00:01:14.409 --> 00:01:19.029 in-person at the Chemical Summit on September 30th and October 1st. 00:01:19.389 --> 00:01:22.269 If you're listening to this episode, when it comes out. 00:01:22.734 --> 00:01:25.464 Then there is still time to be in the room. 00:01:26.154 --> 00:01:29.544 If you're listening to this later, well, we'll see you next year. 00:01:29.904 --> 00:01:32.994 In any case, head on over to the chemical summit.com 00:01:33.024 --> 00:01:34.104 for more details. 00:01:34.824 --> 00:01:38.694 So let's talk about 2025 and where we are sitting currently. 00:01:38.934 --> 00:01:40.794 Let's be honest, it has been. 00:01:41.184 --> 00:01:42.054 Tumultuous. 00:01:42.054 --> 00:01:42.744 That's my word. 00:01:42.774 --> 00:01:45.894 That's I've decided that is the word of the year. 00:01:46.244 --> 00:01:50.714 Whether it be market disruptions, trade tariffs, et cetera. 00:01:50.714 --> 00:01:52.874 We're gonna be talking about that as we go along here. 00:01:53.214 --> 00:01:58.434 I'm gonna be highlighting the market trends that are leading into Q4 2025. 00:01:58.884 --> 00:02:00.294 This gives us context. 00:02:00.354 --> 00:02:04.314 You guys are living it, but let's just re-anchor in the context 00:02:04.314 --> 00:02:07.104 of where we are today and then. 00:02:07.639 --> 00:02:11.959 I'm gonna be talking about the strategies and the execution and the discipline 00:02:12.289 --> 00:02:19.129 that you need to as you head into Q4 and set yourself up for success in 2026. 00:02:19.456 --> 00:02:23.956 So let's talk about this, the top five market trends heading into Q4 2025, 00:02:23.956 --> 00:02:28.186 and you tell me if these are your top five or not, but these are my top five. 00:02:28.666 --> 00:02:29.446 What are we seeing? 00:02:29.626 --> 00:02:32.311 Number one, permanent asset shutdowns in. 00:02:33.321 --> 00:02:37.311 Poor utilization across many parts of the industry, right? 00:02:37.701 --> 00:02:39.021 No surprise there. 00:02:39.381 --> 00:02:41.301 We're seeing announcements. 00:02:41.646 --> 00:02:44.976 It seems like almost daily, but, and these are no longer just 00:02:44.976 --> 00:02:46.566 temporary curtailments, right? 00:02:46.776 --> 00:02:52.356 So at times, you know, this units are slow to restart or maybe we're 00:02:52.356 --> 00:02:54.216 idling a unit or what have you. 00:02:54.216 --> 00:02:58.902 Now we're taking, companies are taking strategic measures, and 00:02:58.962 --> 00:03:00.042 permanently shutting down assets. 00:03:00.582 --> 00:03:00.822 Right? 00:03:00.822 --> 00:03:02.082 We're seeing this a lot in Europe. 00:03:02.352 --> 00:03:04.152 We've seen some of this in the us. 00:03:04.622 --> 00:03:05.012 Dao. 00:03:05.012 --> 00:03:06.247 BASF, Lyell. 00:03:06.252 --> 00:03:07.352 Bassel, sabic. 00:03:07.352 --> 00:03:10.052 Those are some of the big names you've seen, but there's also 00:03:10.052 --> 00:03:11.792 smaller companies along the way. 00:03:12.179 --> 00:03:16.289 Part of this is fundamental structural differences in energy, right? 00:03:16.319 --> 00:03:19.769 These guys are all citing high energy cost structures. 00:03:20.229 --> 00:03:24.939 Policy impacts from sustainability, from energy policies and other things. 00:03:25.039 --> 00:03:28.849 There are measures being taken place, right, but it's a little 00:03:28.849 --> 00:03:30.499 bit late for some of it, right? 00:03:30.499 --> 00:03:34.729 So, companies have made these decisions to make some changes. 00:03:35.179 --> 00:03:36.289 Why does this matter? 00:03:36.499 --> 00:03:36.799 Right? 00:03:36.799 --> 00:03:37.489 So this is. 00:03:38.134 --> 00:03:40.684 Pretty fundamental restructuring of the industry. 00:03:41.044 --> 00:03:42.334 We've seen this happen before. 00:03:42.334 --> 00:03:46.414 I've seen it happen in my career early on, um, at various points in times. 00:03:46.414 --> 00:03:50.824 I think the last time we've really seen some major structural changes was the late 00:03:50.824 --> 00:03:56.007 nineties, early two thousands, even oh 8, 0 9 when there was some bankruptcies. 00:03:56.007 --> 00:03:56.337 Hello. 00:03:56.337 --> 00:03:58.197 But line Deel, I'm talking about you. 00:03:58.856 --> 00:04:01.646 Others, we didn't see the restructuring to this degree. 00:04:01.646 --> 00:04:05.606 So this is a pretty dramatic change with knock on effects for supply, 00:04:05.606 --> 00:04:07.886 security, trade flows and more. 00:04:07.976 --> 00:04:08.636 So that's one. 00:04:08.966 --> 00:04:13.536 And uh, what's gonna be interesting is, um, next week, is my interview with Dewey 00:04:13.536 --> 00:04:15.816 Johnson from Chemical Market Analytics. 00:04:16.086 --> 00:04:17.676 We talk about some of this, right? 00:04:17.676 --> 00:04:21.036 So it's not just these structural changes, it's the fact that we're 00:04:21.036 --> 00:04:24.036 expecting a pretty flat and slow recovery. 00:04:24.216 --> 00:04:27.366 So you're gonna wanna tune in next week, 'cause Dewey and 00:04:27.456 --> 00:04:29.256 I talk about that and more. 00:04:30.366 --> 00:04:34.356 The second key theme heading into Q4 as we wrap up Q3 heading into 00:04:34.356 --> 00:04:36.876 Q4, is trade and tariff volatility. 00:04:36.936 --> 00:04:37.296 Right? 00:04:37.536 --> 00:04:38.106 No doubt. 00:04:38.646 --> 00:04:39.696 Do we have a tariff? 00:04:39.696 --> 00:04:40.806 Do we not have a tariff? 00:04:40.836 --> 00:04:43.026 How the heck are we calculating this tariff? 00:04:43.209 --> 00:04:44.799 You guys are living it, right? 00:04:44.829 --> 00:04:48.609 Um, I, I don't fortunately have to live it as much other than when it shows 00:04:48.609 --> 00:04:54.309 up on my doorstep and my products, et cetera, but these trade disputes and 00:04:54.309 --> 00:04:58.029 tariff shifts are really influencing. 00:04:58.279 --> 00:05:00.439 Behaviors across the industry. 00:05:00.469 --> 00:05:00.889 Right? 00:05:00.949 --> 00:05:05.839 Um, and then if we add in ongoing geopolitical situations between 00:05:05.839 --> 00:05:11.059 China and North America and the Middle East and everywhere, right? 00:05:11.059 --> 00:05:15.019 It seems like we've got geopolitical situations and tensions in a lot 00:05:15.019 --> 00:05:20.299 of places that's having effect on our, um, on the industry. 00:05:20.479 --> 00:05:21.919 And why is this important? 00:05:22.039 --> 00:05:24.049 Volatility is. 00:05:24.699 --> 00:05:25.569 Tough to deal with. 00:05:25.569 --> 00:05:29.169 And the bigger issue to deal with, and that I hear collectively 00:05:29.169 --> 00:05:30.639 from people is uncertainty. 00:05:31.029 --> 00:05:33.669 It is hard to manage around uncertainty. 00:05:34.299 --> 00:05:35.739 You can do it right. 00:05:35.739 --> 00:05:37.749 So one of some of the ways that we talk about doing this 00:05:37.749 --> 00:05:38.814 is through scenario planning. 00:05:39.412 --> 00:05:43.312 Assessing what those options might be, um, et cetera. 00:05:43.312 --> 00:05:48.922 But this volatility and uncertainty is hard to deal with, but it also creates 00:05:48.922 --> 00:05:53.992 opportunities if you are prepared to take advantage of that volatility. 00:05:53.992 --> 00:05:58.642 If you've mapped out your scenarios and situations and how you wanna respond, 00:05:59.212 --> 00:06:03.052 you're able to capture share, you're able to capture volume and margin. 00:06:03.082 --> 00:06:04.372 Um, and that's a great thing. 00:06:04.792 --> 00:06:07.132 By the way, cue the supply chain teams. 00:06:07.347 --> 00:06:11.307 Right, so we're talking about that and more at the Chemical Summit. 00:06:11.607 --> 00:06:15.177 I've been talking to some supply chain leaders who are like Victoria, 00:06:15.237 --> 00:06:19.407 finally, supply chain is getting its due because the response to tariff and 00:06:19.407 --> 00:06:24.027 trade, uh, volatility and uncertainty comes through in our supply chains. 00:06:24.177 --> 00:06:25.257 So more on that later. 00:06:26.422 --> 00:06:29.272 The third team coming through is capital constraints and 00:06:29.272 --> 00:06:30.712 higher cost of financing, right? 00:06:30.982 --> 00:06:32.182 It's just more expensive. 00:06:32.212 --> 00:06:34.162 People have less free cash flow. 00:06:34.372 --> 00:06:35.962 It's more expensive to borrow money. 00:06:36.232 --> 00:06:39.892 This leads us to this whole situation of cash is king, right? 00:06:40.032 --> 00:06:40.962 focus. 00:06:41.027 --> 00:06:43.787 Companies are being more selective in their investments, where 00:06:43.787 --> 00:06:46.277 they're putting in projects where they're just spending money. 00:06:46.487 --> 00:06:48.077 You still have to spend money, guys. 00:06:48.407 --> 00:06:50.357 Um, and I think we're seeing that absolutely. 00:06:50.357 --> 00:06:52.967 People recognize that we still need to, they still need to 00:06:52.967 --> 00:06:54.347 spend money to visit customers. 00:06:54.677 --> 00:06:57.467 They need to make strategic project decisions, but there are 00:06:57.467 --> 00:06:58.787 far more capital constraints. 00:06:58.787 --> 00:07:03.617 And so we're seeing, slowing down, um, a more mindfulness and in fact, 00:07:04.007 --> 00:07:09.867 again, Part of this is coming into just cuts with plant shutdowns 00:07:09.867 --> 00:07:12.117 come talent restructuring, right? 00:07:12.357 --> 00:07:15.537 So the big guys, whether it be Chevron, Phillips, lion del Bassel, 00:07:15.807 --> 00:07:17.277 we're seeing a lot of announcements. 00:07:17.307 --> 00:07:19.507 Um, in reality, I talk to people. 00:07:20.667 --> 00:07:25.717 Regularly that are in transition, at inflection points, coaching them 00:07:25.717 --> 00:07:30.517 through how do they handle those situations that maybe were expected, 00:07:30.697 --> 00:07:32.587 but the timing is sometimes a surprise. 00:07:32.587 --> 00:07:33.997 Well, these things happen. 00:07:33.997 --> 00:07:38.137 So, um, again, back to this whole capital constraints, how it plays 00:07:38.137 --> 00:07:40.327 out, there are regional differences. 00:07:40.637 --> 00:07:44.357 We talk about that, but this is certainly something facing companies 00:07:44.357 --> 00:07:45.707 across the chemical industry. 00:07:46.061 --> 00:07:52.751 The fourth theme heading into Q4 is around decarbonization, right? 00:07:52.751 --> 00:07:56.951 So this is, you could call it the decade of decarbonization. 00:07:57.011 --> 00:07:57.551 I might. 00:07:57.851 --> 00:08:01.271 The reality is across the, the chemical industry has been. 00:08:02.246 --> 00:08:05.516 Improving itself, decarbonizing, improving its air and water 00:08:05.516 --> 00:08:06.836 quality, all these things. 00:08:06.836 --> 00:08:11.839 But we are really focused in on decarbonization until we're not. 00:08:12.229 --> 00:08:14.689 And now what we're seeing is really. 00:08:15.274 --> 00:08:22.264 Strategic back to the strategic discipline around large scale projects being paused. 00:08:22.294 --> 00:08:22.684 Right. 00:08:22.684 --> 00:08:28.944 So most recently we've seen Dow has delayed its net zero cracker in Canada. 00:08:29.154 --> 00:08:33.624 They've made some other decisions and announcements around delaying some 00:08:33.624 --> 00:08:35.154 of this investment that they've got. 00:08:35.899 --> 00:08:39.049 And so we're seeing the big stuff get delayed. 00:08:39.109 --> 00:08:41.929 The reality is incremental efficiency. 00:08:41.929 --> 00:08:44.329 Scope three, collaborations continue. 00:08:44.329 --> 00:08:48.269 So, it's all ever more important to be operationally. 00:08:49.039 --> 00:08:51.589 Effective, um, and execute effectively. 00:08:51.589 --> 00:08:52.789 And we're gonna be talking about that. 00:08:52.999 --> 00:08:55.489 The other thing we're talking about is that there is still a 00:08:55.489 --> 00:08:57.289 business case for sustainability. 00:08:57.289 --> 00:09:01.899 So that's actually one of the panels at the Chemical Summit is about, the 00:09:01.899 --> 00:09:03.579 business case for sustainability. 00:09:03.579 --> 00:09:07.584 And we've got leaders from a CC ese. 00:09:08.169 --> 00:09:14.109 And Lindy and others on that panel talking about what is the business case. 00:09:14.469 --> 00:09:17.439 The other thing to be listening to as a podcast listener, we 00:09:17.439 --> 00:09:21.159 have an upcoming episode at the end of October with Together for 00:09:21.159 --> 00:09:23.919 Sustainability Initiative, TFS. 00:09:24.309 --> 00:09:26.649 Which focuses on sustainable procurement. 00:09:26.649 --> 00:09:31.479 So it's a great interview with Jennifer Juin of Lyell Bassell and 00:09:31.479 --> 00:09:37.959 Danielle Warnock of Ion talking about the importance of sustainable 00:09:37.959 --> 00:09:39.849 and responsible pro procurement. 00:09:39.939 --> 00:09:40.839 Oh, that was a hard one. 00:09:40.839 --> 00:09:45.759 Sustainable and responsible procurement and the business case for sustainability. 00:09:45.759 --> 00:09:48.729 So you're gonna wanna tune into that episode as well. 00:09:49.089 --> 00:09:50.739 That's coming up end of October. 00:09:51.079 --> 00:09:54.469 And the fifth trend that we're gonna talk about here, and, and 00:09:54.469 --> 00:09:56.419 you've seen this, is uneven demand. 00:09:56.569 --> 00:09:58.279 Uneven demand growth. 00:09:58.669 --> 00:10:02.479 Maybe there's some lack of growth, uh, some weakness in over 00:10:02.479 --> 00:10:04.099 capacity, certainly in commodities. 00:10:04.099 --> 00:10:05.329 We've talked about this before. 00:10:05.329 --> 00:10:09.199 There's strength in certain specialties, but it's volatile. 00:10:09.199 --> 00:10:09.289 It's. 00:10:10.394 --> 00:10:13.424 Really product and market specific. 00:10:13.754 --> 00:10:17.474 Um, and it's influenced of course, by capital policies. 00:10:17.804 --> 00:10:20.204 It's influenced by energy cost. 00:10:20.234 --> 00:10:24.554 It's influenced by the demand that's driven as a result of 00:10:24.554 --> 00:10:26.384 what's going on in the world today. 00:10:26.414 --> 00:10:28.274 So those are my five. 00:10:28.651 --> 00:10:30.366 So as a leader. 00:10:30.829 --> 00:10:32.119 What does this mean for you? 00:10:32.179 --> 00:10:38.844 What should you be doing in Q4 2025 to set yourself up for the year end? 00:10:39.679 --> 00:10:41.749 And to position for 2026. 00:10:41.779 --> 00:10:42.169 Right? 00:10:42.379 --> 00:10:44.599 So I talked about this a little bit earlier. 00:10:44.599 --> 00:10:50.449 What I would say is now is the time to demonstrate execution maturity, right? 00:10:50.509 --> 00:10:54.049 Execution and discipline are ever important. 00:10:54.419 --> 00:10:56.369 And this is really the quarter. 00:10:56.549 --> 00:11:02.399 This is the time when times are tough, where strategic discipline sets you apart. 00:11:02.849 --> 00:11:07.679 And we're gonna see the winners and losers playing out over the next year. 00:11:07.949 --> 00:11:11.669 Based on responses to what you're doing today in 2025 and 00:11:11.669 --> 00:11:14.129 how it rolls into 26 and beyond. 00:11:14.309 --> 00:11:17.854 So here's the themes and here's what you as a leader. 00:11:18.449 --> 00:11:19.109 Can be doing. 00:11:19.109 --> 00:11:21.809 And by the way, this is you as a leader. 00:11:21.839 --> 00:11:24.209 If you're at the top of your company, this is you. 00:11:24.599 --> 00:11:28.559 If you're in the middle of your company, just kind of working in the stew of 00:11:28.559 --> 00:11:33.239 things, this is also the why of why you're doing some of the things you're 00:11:33.239 --> 00:11:35.729 doing that sometimes seem disconnected. 00:11:35.729 --> 00:11:39.839 And I know at times when I was junior in my career, there were 00:11:40.079 --> 00:11:45.809 decisions made and actions taken that I was like, why are we doing this? 00:11:46.109 --> 00:11:47.159 That when you get a bit. 00:11:47.534 --> 00:11:48.944 Bigger picture, right? 00:11:48.974 --> 00:11:52.214 Elevate up not just in terms of your role, but if you just elevate your 00:11:52.214 --> 00:11:57.134 picture and what you're looking at, you see, um, some of these patterns, 00:11:57.134 --> 00:12:00.854 some of these leadership behaviors and the deci, the decisions and 00:12:00.854 --> 00:12:05.294 the discipline and the strategic execution that you're taking that ends 00:12:05.294 --> 00:12:06.824 up making sense for the long term. 00:12:07.304 --> 00:12:09.074 All right, here we go. 00:12:09.494 --> 00:12:14.324 Um, number one, tighten down operations while protecting strategic growth. 00:12:14.324 --> 00:12:14.924 What does this mean? 00:12:15.434 --> 00:12:19.724 Really, we are doubling down on margin management, energy 00:12:19.724 --> 00:12:22.274 efficiency, cost discipline in Q4. 00:12:22.494 --> 00:12:26.694 I'm already hearing, uh, here as we sit in September of companies 00:12:26.694 --> 00:12:31.974 starting to slow down and dial back on their inventories, maybe. 00:12:32.289 --> 00:12:36.729 Containing and planning and strategizing a little bit more on orders, products 00:12:36.729 --> 00:12:40.419 that they're bringing in, orders that they're putting out really around this 00:12:40.419 --> 00:12:47.969 whole, discipline to have cash and cost discipline to finish the year strong, to 00:12:47.969 --> 00:12:51.269 still fund strategic growth because again. 00:12:51.994 --> 00:12:54.124 Strategic growth is critical. 00:12:54.124 --> 00:12:56.644 Funding your money and putting your money in the right place is critical. 00:12:56.824 --> 00:12:57.664 Where are we seeing this? 00:12:57.664 --> 00:12:57.964 Right? 00:12:58.144 --> 00:13:01.564 So what I would say is leaders are not just trimming costs for survival, it's 00:13:01.564 --> 00:13:05.944 really about freeing up capital to fund transformational growth, right? 00:13:06.214 --> 00:13:09.604 So we're gonna talk in a minute about portfolio discipline and how 00:13:09.854 --> 00:13:12.794 some businesses are cutting assets. 00:13:12.794 --> 00:13:15.824 Well, when somebody is selling, you gotta have cash to buy. 00:13:16.124 --> 00:13:17.714 'cause if you don't have cash to buy. 00:13:18.104 --> 00:13:19.814 You miss out on opportunities, right? 00:13:19.814 --> 00:13:21.524 So that's part of what we're doing here. 00:13:21.524 --> 00:13:23.624 As we think about and what leaders are doing. 00:13:23.624 --> 00:13:27.614 What you could be doing is really around tightening cash management, margin 00:13:27.614 --> 00:13:32.534 management, so that you've got the money in hand, the capital, the working 00:13:32.534 --> 00:13:37.804 capital, your financial levers to do what you need to do in the future, right? 00:13:37.804 --> 00:13:41.674 So we're seeing this, we're seeing this across a number of companies. 00:13:42.091 --> 00:13:43.261 Why does it matter? 00:13:43.261 --> 00:13:46.531 So right, of course, number one, heading into Q4, everybody's, if you're 00:13:46.531 --> 00:13:50.461 a publicly traded company, it's about what your investors see on the books. 00:13:50.671 --> 00:13:54.451 If you're a private company, it's still about that year end. 00:13:54.451 --> 00:13:58.801 Financial reporting is critical, but it's also about having, again, the money 00:13:58.801 --> 00:14:01.321 to reinvest in innovation and m and a. 00:14:02.069 --> 00:14:06.779 Sustainability projects and frankly just to keep the lights turned on. 00:14:06.839 --> 00:14:11.309 'cause sometimes it's a rough patch and we're in a little bit of a rough patch, 00:14:11.309 --> 00:14:12.869 especially depending on where you are. 00:14:12.869 --> 00:14:16.709 So, um, you know, the mantra that we often hear is Cassius King. 00:14:17.339 --> 00:14:18.899 Cassius King, right. 00:14:19.179 --> 00:14:20.744 The second action. 00:14:21.699 --> 00:14:24.939 You can be taking as a leader and that you see leaders in companies 00:14:24.939 --> 00:14:29.429 taking already is around portfolio discipline and selective investment. 00:14:29.429 --> 00:14:29.669 Right? 00:14:29.669 --> 00:14:31.109 So a lot of big words, but really. 00:14:32.099 --> 00:14:37.619 Taking a look at non-core businesses for divestment, um, and lining 00:14:37.619 --> 00:14:39.089 up investment cases for growth. 00:14:39.089 --> 00:14:43.419 So a great case in point recently, DuPont sold an, or announced a 00:14:43.419 --> 00:14:48.829 sale of its specialty, materials business, nomax and Kevlar to Alan. 00:14:49.849 --> 00:14:52.459 The reality is it's still a good business. 00:14:52.489 --> 00:14:56.809 It's just not a good fit for where DuPont is and where it wants to go. 00:14:56.869 --> 00:14:59.689 So getting smart in terms of what. 00:15:00.874 --> 00:15:04.504 Product lines you wanna be in, what assets make sense to have? 00:15:04.844 --> 00:15:08.144 And so that, you know, in your case it might be pruning. 00:15:08.144 --> 00:15:13.084 And I always talk about as a gardener, you sometimes have to prune to grow. 00:15:13.114 --> 00:15:18.334 And we're a bit in that mode of pruning the assets, the business lines. 00:15:19.154 --> 00:15:22.304 Don't make sense for you today and in the future. 00:15:22.304 --> 00:15:26.404 Again, strategic discipline, and other people acquiring them because 00:15:26.404 --> 00:15:27.964 it makes great sense for them. 00:15:28.084 --> 00:15:32.794 They have a unique value that they can apply that helps them to grow. 00:15:33.034 --> 00:15:36.904 So portfolio discipline and selective investment. 00:15:37.049 --> 00:15:41.039 The third thing here is around stress testing supply chains for resilience. 00:15:41.099 --> 00:15:46.079 Uh, you guys have heard me say this, it is the decade of supply chain. 00:15:46.079 --> 00:15:50.189 I feel like everybody's like, oh, Victoria, are we not done 00:15:50.189 --> 00:15:52.439 yet working on our supply chains? 00:15:52.439 --> 00:15:54.269 And the answer to that is no. 00:15:54.509 --> 00:15:55.649 Of course you're not. 00:15:56.009 --> 00:15:59.279 When products move, when your businesses shift, when the 00:15:59.279 --> 00:16:01.949 situations around you are changing. 00:16:02.774 --> 00:16:08.054 You need to keep assessing and evaluating and refining your supply 00:16:08.054 --> 00:16:12.224 chains, your supply chain strategy, your discipline of execution, right? 00:16:12.224 --> 00:16:16.724 So couple examples recently, and I talked about this when I talked about Q2. 00:16:17.084 --> 00:16:21.524 Uh, my reflections on Q2 earnings reports, you know, clearance, they've announced 00:16:21.524 --> 00:16:23.474 that they've got something like 70%. 00:16:23.864 --> 00:16:28.664 Of their business is local sourcing makes sense, especially for a specialty 00:16:28.664 --> 00:16:34.154 chemical company, but it also provides resilience against transportation, 00:16:34.184 --> 00:16:38.474 tariffs, other situations that are making it really hard to plan. 00:16:38.804 --> 00:16:41.834 You know, and what is different today about this, right? 00:16:41.834 --> 00:16:42.194 Again? 00:16:42.224 --> 00:16:44.324 'cause you're like, we've been doing this. 00:16:44.384 --> 00:16:45.284 I know. 00:16:45.344 --> 00:16:47.444 And frankly, you're never gonna stop. 00:16:47.804 --> 00:16:52.694 Um, but what's really different about right now is when we think 00:16:52.694 --> 00:16:54.164 about resilience, it's like patching. 00:16:55.054 --> 00:16:59.494 Vulnerabilities, you're fixing things up, but it's really about turning 00:16:59.494 --> 00:17:06.034 resilience and reliability into customer value propositions and recognizing 00:17:06.334 --> 00:17:08.524 the strength of your supply chains. 00:17:09.389 --> 00:17:13.469 Both physically as well as the people that are in your supply chains and 00:17:13.469 --> 00:17:17.489 your know-how and your ability to apply different strategies, different 00:17:17.489 --> 00:17:19.229 tariffs, different relationships. 00:17:19.679 --> 00:17:21.989 This is a competitive advantage, right? 00:17:22.019 --> 00:17:25.469 It is really a difference maker for the businesses. 00:17:25.659 --> 00:17:27.159 That are able to turn it on. 00:17:27.459 --> 00:17:32.829 Um, hin, who is the CEO of NewCo Logistics, um, she's been a past guest 00:17:32.829 --> 00:17:36.099 on the Chemical Show and she's gonna be a panelist at the Chemical Summit. 00:17:36.099 --> 00:17:39.429 She and I just had a conversation recently and she's like, finally, 00:17:39.429 --> 00:17:44.709 Victoria Supply Chain is becoming a valuable partner and not just a utility. 00:17:44.709 --> 00:17:45.819 We're recognizing it. 00:17:46.119 --> 00:17:47.619 Yes we are. 00:17:47.889 --> 00:17:49.029 And smart leaders do. 00:17:49.569 --> 00:17:49.989 Right? 00:17:50.259 --> 00:17:53.319 So that's my third item, number four. 00:17:53.737 --> 00:17:56.347 Advancing decarbonization commitments. 00:17:56.407 --> 00:18:01.921 Okay, Q4 is really the time to sharpen your transition roadmaps, right? 00:18:01.921 --> 00:18:05.971 So the goals that have been set out there have not gone away. 00:18:06.331 --> 00:18:11.011 Maybe they've been deferred, maybe they're being approached differently. 00:18:11.011 --> 00:18:12.991 I know that some people feel like. 00:18:13.366 --> 00:18:16.276 Gee, we're sustainability's no longer important. 00:18:16.486 --> 00:18:19.696 And I sometimes ask that question like, is sustainability important? 00:18:19.696 --> 00:18:20.056 Still? 00:18:20.296 --> 00:18:21.316 The answer is yes. 00:18:21.436 --> 00:18:22.606 Who is it important to? 00:18:22.636 --> 00:18:26.506 It's important to your customers, it's important to your shareholders. 00:18:26.536 --> 00:18:29.146 It is important to your future employees. 00:18:29.656 --> 00:18:35.176 Um, it's important to the, you know, just your license to operate 00:18:35.176 --> 00:18:36.856 on a long term basis, right? 00:18:37.126 --> 00:18:42.719 So certainly we've seen recently, right, Dow paused, its net Zero Cracker Project 00:18:42.719 --> 00:18:49.619 in Canada and some other things, and yet has continued to sign incremental, 00:18:49.669 --> 00:18:55.459 plans for electrifying assets, signing renewable energy contracts, reporting 00:18:55.459 --> 00:18:56.809 on its scope three supplier data. 00:18:56.809 --> 00:18:57.949 That's just one example. 00:18:57.949 --> 00:19:03.769 So it's really about being very mindful and strategic and focused. 00:19:04.639 --> 00:19:09.319 More tactically focused on things that are more controllable and deliverable, 00:19:09.459 --> 00:19:10.749 So that's important to think about. 00:19:10.899 --> 00:19:14.259 Can you actually deliver on your promises that's important? 00:19:14.492 --> 00:19:18.722 Versus these bigger promises, big booming promises that we saw 00:19:18.752 --> 00:19:20.282 everybody make a couple years ago. 00:19:20.912 --> 00:19:22.142 Eh, nobody's making those anymore. 00:19:22.847 --> 00:19:27.197 Still continuing to advance decarbonization and SU and 00:19:27.197 --> 00:19:32.261 sustainability focusing in on bio-based products, greener products? 00:19:32.441 --> 00:19:38.747 Yes, investors, customers, stakeholders expect clarity and 00:19:38.747 --> 00:19:40.397 they expect credible progress. 00:19:40.427 --> 00:19:44.867 And so companies and leaders that are articulating that, articulating those 00:19:44.927 --> 00:19:49.502 really concrete next steps are winning trust and they're winning capital. 00:19:50.119 --> 00:19:53.179 Five, talent and culture readiness, right? 00:19:53.179 --> 00:19:58.159 So I didn't really touch on talent in the beginning part of this in terms 00:19:58.159 --> 00:20:03.379 of themes other than, Hey guys, you and I are both seeing a lot of layoffs 00:20:03.379 --> 00:20:07.669 across the industry, not necessarily widespread, or maybe they're widespread. 00:20:07.669 --> 00:20:09.409 Let me know, um, what you're seeing. 00:20:09.409 --> 00:20:10.969 But we're certainly seeing enough of that. 00:20:10.999 --> 00:20:11.779 I'm hearing it. 00:20:11.779 --> 00:20:12.949 People are reaching out. 00:20:13.369 --> 00:20:16.069 The announcements are in the paper, individuals are talking. 00:20:16.579 --> 00:20:17.869 But talent is important. 00:20:17.869 --> 00:20:20.719 It's not just about the fact that we are streamlining talent. 00:20:20.749 --> 00:20:21.534 It's that talent. 00:20:22.324 --> 00:20:27.724 Is, and people, people and culture are defining success, right? 00:20:27.911 --> 00:20:31.781 if I think about all the trends and the themes that are influencing us, right? 00:20:31.781 --> 00:20:35.381 So it's stuff like digitization and AI and supply chain. 00:20:35.681 --> 00:20:41.981 We need leaders that are ready and capable and not just leaders in terms of senior 00:20:41.981 --> 00:20:43.721 leaders, it's leaders in their roles. 00:20:43.721 --> 00:20:48.036 It's the individuals that can take and adapt and grow. 00:20:48.591 --> 00:20:52.491 With new ways of doing business, which is absolutely where we are, right? 00:20:52.791 --> 00:20:58.171 We are in a transformation across the industry, culturally, strategically, 00:20:58.171 --> 00:21:03.001 structurally, and people are critical to making that transformation happen. 00:21:03.061 --> 00:21:07.296 So, you know, focusing in on making sure that you've got the 00:21:07.301 --> 00:21:11.491 right succession planning, that you're skill building across your. 00:21:11.831 --> 00:21:14.591 Employee base, um, at all levels. 00:21:14.621 --> 00:21:19.811 Technical, operational, business, strategic, customer facing, skill building 00:21:19.811 --> 00:21:24.731 and digital and AI and all the other important things, um, and really aligning 00:21:24.731 --> 00:21:26.621 your culture to transformation growth. 00:21:27.431 --> 00:21:29.651 Again, it's all about. 00:21:30.266 --> 00:21:34.556 Tactics and execution and really alignment. 00:21:34.676 --> 00:21:41.996 So entering 2026 with engaged teams that are aligned, that are ready to 00:21:41.996 --> 00:21:45.181 lead through disruption, that are ready to take on the new challenges 00:21:45.601 --> 00:21:47.061 is a real competitive advantage. 00:21:47.744 --> 00:21:53.204 And my sixth point here, um, for leaders, things that you can and should be doing 00:21:53.204 --> 00:21:58.664 here in the fourth quarter to set you up for success, to close out strong and to 00:21:58.664 --> 00:22:04.334 set you up for success going into 2026 is around customer centric engagement. 00:22:04.364 --> 00:22:04.694 Right? 00:22:04.694 --> 00:22:09.644 At the end of the day, you need to be really connecting with your 00:22:09.644 --> 00:22:11.714 key customers here at year end. 00:22:11.952 --> 00:22:15.912 Frankly, not just the call for cash, which that sometimes happens, right? 00:22:15.942 --> 00:22:20.512 Um, when I was at Shell, we used to talk about having Gold Rush in, Q4 and 00:22:20.512 --> 00:22:25.162 especially December, trying to close out all those open invoices and get paid 00:22:25.162 --> 00:22:26.962 and, and be able to have that in there. 00:22:27.142 --> 00:22:31.372 It's not just about that, it's about benchmarking, understanding 00:22:31.372 --> 00:22:32.302 what their priorities are. 00:22:32.302 --> 00:22:34.222 How do you finish strong together? 00:22:34.552 --> 00:22:37.702 Right, so while you've got goals, your customers have goals as well. 00:22:37.702 --> 00:22:44.422 So how do you finish strong together in the Q4 and then benchmarking on how their 00:22:44.422 --> 00:22:50.152 priorities are shifting, what's important to them, what's actually driving value? 00:22:50.557 --> 00:22:51.037 Right. 00:22:51.037 --> 00:22:55.177 So customers don't necessarily want these incremental sales conversations. 00:22:55.177 --> 00:22:56.587 Sometimes they do, right? 00:22:56.647 --> 00:22:57.157 Absolutely. 00:22:57.157 --> 00:22:58.657 And frankly, we all need them. 00:22:59.077 --> 00:23:03.787 But it's also about having strategic partnership, um, and solving, 00:23:03.937 --> 00:23:07.777 creating solutions, creating value, identifying what really matters. 00:23:08.017 --> 00:23:10.987 So I recently spoke to James Hogan of Simon Kutcher. 00:23:10.987 --> 00:23:12.727 In fact, that was last week's episode. 00:23:12.997 --> 00:23:14.767 So by the way, if you haven't listened to that one. 00:23:14.842 --> 00:23:15.952 Go back and listen. 00:23:16.342 --> 00:23:18.652 Um, if you have listened to it, listen again. 00:23:18.892 --> 00:23:23.092 Um, it was a really good one, but we talked about the importance of pricing. 00:23:23.462 --> 00:23:27.032 And frankly, price is the biggest, fastest lever you have 00:23:27.482 --> 00:23:29.012 in your business financially. 00:23:29.399 --> 00:23:30.809 But it's not price alone. 00:23:31.079 --> 00:23:34.169 It's the value that you bring to your customers. 00:23:34.499 --> 00:23:37.109 It is the customer centricity that you've got. 00:23:37.429 --> 00:23:39.469 And early alignment. 00:23:39.769 --> 00:23:44.839 With your customers now in 2025 to talk about how are we doing 00:23:44.839 --> 00:23:46.849 business together in 2026? 00:23:47.149 --> 00:23:48.919 What's gonna make us great partners? 00:23:49.129 --> 00:23:50.989 How do I bring you value? 00:23:51.199 --> 00:23:52.399 How do you bring me value? 00:23:52.579 --> 00:23:54.949 Because I do think that equation goes both ways. 00:23:55.156 --> 00:24:01.186 How do we bring value to each other as partners, as collaborators, as. 00:24:01.741 --> 00:24:04.351 You know, value chain participants, right? 00:24:04.801 --> 00:24:06.331 It's really critical, right? 00:24:06.331 --> 00:24:09.481 And this customer centricity, we talk about it. 00:24:09.971 --> 00:24:14.711 We're talking about it again, because this becomes a game changer for you 00:24:15.101 --> 00:24:21.011 and your business and the companies and leaders that are figuring out what 00:24:21.011 --> 00:24:23.321 really matters, what brings value. 00:24:23.531 --> 00:24:28.331 How do you get that reflection of value back from your customers are winning. 00:24:29.111 --> 00:24:33.251 Today into Q4 and as we head into 2026. 00:24:33.431 --> 00:24:36.071 so that is a wrap for today. 00:24:36.071 --> 00:24:39.821 And what I would leave you with is we are entering the fourth quarter, and 00:24:39.821 --> 00:24:44.501 frankly, the fourth quarter is the best and most exciting quarter, right? 00:24:44.501 --> 00:24:47.861 So any sports enthusiast, whether you watch football, whether you 00:24:47.861 --> 00:24:52.481 watch basketball, pick another sport, fourth quarter is a game changer. 00:24:52.781 --> 00:24:53.801 Anything can happen. 00:24:54.671 --> 00:24:56.621 You may be down, you may be winning. 00:24:56.941 --> 00:24:58.441 It is go time though. 00:24:58.441 --> 00:25:00.601 Fourth quarter is the best quarter. 00:25:01.111 --> 00:25:02.101 It's not too late. 00:25:02.521 --> 00:25:09.236 You can really win still here in 2025 and set yourself up for success in 2026. 00:25:09.907 --> 00:25:11.257 I had love to hear what you think. 00:25:11.287 --> 00:25:16.177 I wanna find out what are you doing to set yourself up for success in 00:25:16.177 --> 00:25:18.877 2026 and to close out strong in 2025. 00:25:18.877 --> 00:25:21.967 So send me a message on LinkedIn, leave me a dm. 00:25:22.087 --> 00:25:23.077 Love to hear from you. 00:25:23.527 --> 00:25:26.647 And as always, thanks for joining us today. 00:25:26.947 --> 00:25:30.122 Keep listening, keep following, keep sharing, and I'll talk 00:25:30.127 --> 00:25:31.537 to you again very soon. 00:25:32.627 --> 00:25:34.817 Thanks for joining us today on The Chemical Show. 00:25:35.177 --> 00:25:39.677 If you enjoyed this episode, be sure to subscribe, leave a review, 00:25:39.917 --> 00:25:43.307 and most importantly, share it with your friends and colleagues. 00:25:44.327 --> 00:25:47.627 For more insights, visit the Chemical show.com 00:25:48.077 --> 00:25:49.582 and connect with us on LinkedIn. 00:25:50.357 --> 00:25:54.317 You can find me at Victoria King Meyer on LinkedIn, and you can also 00:25:54.317 --> 00:25:56.477 find us at The Chemical Show Podcast. 00:25:56.657 --> 00:25:59.837 Join us next time for more conversations and strategies 00:26:00.137 --> 00:26:01.907 shaping the future of the industry. 00:26:02.297 --> 00:26:03.017 We'll see you soon.