WEBVTT NOTE This file was generated by Descript 00:00:05.260 --> 00:00:08.050 voiceover: A key component of the modern world economy, the chemical 00:00:08.050 --> 00:00:11.599 industry delivers products and innovations to enhance everyday life. 00:00:12.120 --> 00:00:16.110 It is also an industry in transformation where chemical executives and 00:00:16.110 --> 00:00:19.730 workers are delivering growth and industry changing advancements while 00:00:19.730 --> 00:00:23.480 responding to pressures from investors, regulators, and public opinion. 00:00:24.029 --> 00:00:26.960 Discover how leading companies are approaching these challenges 00:00:26.970 --> 00:00:28.590 here on The Chemical Show. 00:00:29.040 --> 00:00:33.129 Join Victoria Meyer, president of Progressio Global and host of The 00:00:33.129 --> 00:00:37.114 Chemical Show, As she speaks with executives across the industry and 00:00:37.114 --> 00:00:41.385 learns how they are leading their companies to grow, transform, and push 00:00:41.415 --> 00:00:43.875 industry boundaries on all frontiers. 00:00:44.205 --> 00:00:46.465 Here's your host, Victoria Meyer. 00:00:49.262 --> 00:00:50.822 Victoria: Hi, this is Victoria Meyer. 00:00:50.892 --> 00:00:52.722 Welcome back to The Chemical Show. 00:00:53.082 --> 00:01:00.672 This is episode 158, and it's a short episode reflecting on the key themes 00:01:00.732 --> 00:01:05.562 coming out of the recent AFPM IPC 2024. 00:01:05.562 --> 00:01:09.882 IPC, if you don't know, stands for International Petrochemical Conference. 00:01:10.802 --> 00:01:12.902 It's held every year in San Antonio, Texas. 00:01:13.522 --> 00:01:14.782 Great attendance this year. 00:01:14.782 --> 00:01:18.772 In fact, per Rob Benedict of AFPM, this was the strongest 00:01:18.772 --> 00:01:21.072 attendance since pre COVID. 00:01:21.082 --> 00:01:24.532 So since at least 2019, so a lot of people in attendance there. 00:01:24.872 --> 00:01:28.952 This is one of those conferences where, you know, I like to call it speed dating. 00:01:29.022 --> 00:01:29.982 You guys know the one. 00:01:30.032 --> 00:01:34.062 The opportunity to see lots and lots of people leaders and companies go 00:01:34.062 --> 00:01:35.522 from meeting to meeting to meeting. 00:01:35.802 --> 00:01:37.602 It can be a little overwhelming. 00:01:37.892 --> 00:01:41.822 And, but also it's, a lot of business takes place, a lot 00:01:41.822 --> 00:01:43.712 of action happens, et cetera. 00:01:44.032 --> 00:01:44.297 It's. 00:01:44.507 --> 00:01:49.157 The complete opposite, by the way, of The Chemical Summit, which if you guys don't 00:01:49.157 --> 00:01:54.547 already know is being held on October 8th and 9th this year in Spring Texas, 00:01:54.947 --> 00:01:59.627 where the focus of The Chemical Summit is thought leadership, connections, and 00:01:59.697 --> 00:02:01.797 insights that you can actually apply. 00:02:02.127 --> 00:02:07.417 It is a really unique opportunity to get some great thought leadership. 00:02:07.847 --> 00:02:11.467 Not just from the people on the stage, but from the people in the 00:02:11.467 --> 00:02:15.877 room, engaging with your industry peers at a much deeper level. 00:02:16.297 --> 00:02:18.117 It is definitely going to sell out this year. 00:02:18.127 --> 00:02:20.167 We have launched the tickets. 00:02:20.197 --> 00:02:20.797 Quietly. 00:02:21.027 --> 00:02:22.697 The tickets are open right now. 00:02:22.767 --> 00:02:28.087 Get your tickets early because they will not be there if you're waiting till late. 00:02:28.107 --> 00:02:29.737 So anyway, the chemical summit. 00:02:30.077 --> 00:02:34.817 com, um, and agendas and speakers and topics are being put together. 00:02:34.857 --> 00:02:35.647 It's going to be great. 00:02:36.567 --> 00:02:42.907 So turning more to AFPM IPC, four themes emerge that I'm going to 00:02:42.907 --> 00:02:44.547 talk about and share with you today. 00:02:44.797 --> 00:02:48.097 And those four themes are number one, cautious optimism. 00:02:48.417 --> 00:02:49.897 We're going to talk more about that in a little bit. 00:02:50.287 --> 00:02:56.687 Number two, supply chain in focus, third global harmonization, and 00:02:56.687 --> 00:02:58.717 then fourth ethical leadership. 00:02:59.317 --> 00:03:02.407 So I'm going to tackle each one of these in turn. 00:03:02.657 --> 00:03:03.757 So the first thing is. 00:03:04.037 --> 00:03:05.687 Cautious optimism, right? 00:03:05.697 --> 00:03:08.787 That seems to be the market sentiment. 00:03:09.177 --> 00:03:13.497 When I talk to companies and I talked to a variety of companies early in the 00:03:13.497 --> 00:03:17.887 conference, later in the conference, first of all, there was like no real highs 00:03:17.887 --> 00:03:19.457 and lows, which I guess is a good thing. 00:03:19.697 --> 00:03:23.467 But many companies stated that they actually started the year pretty strong. 00:03:23.527 --> 00:03:24.992 They are cautiously optimistic. 00:03:25.932 --> 00:03:26.632 about the year. 00:03:26.892 --> 00:03:31.032 Now, remember these are, it's a strong, uh, US presence. 00:03:31.472 --> 00:03:34.712 Definitely a European presence, less so from Asia. 00:03:34.712 --> 00:03:37.802 And, you know, part of that I think is still travel challenges for many folks. 00:03:38.112 --> 00:03:40.872 But when you look at it, and these are global companies that are speaking 00:03:40.872 --> 00:03:46.322 with many companies started January strong, they see that they're recovering 00:03:46.322 --> 00:03:51.467 from the de stocking of 2023 and that the first quarter was pretty Okay. 00:03:51.767 --> 00:03:52.097 Right. 00:03:52.097 --> 00:03:55.837 So I would call it cautiously optimistic and some tempered 00:03:55.897 --> 00:03:58.337 enthusiasm about what the year holds. 00:03:58.797 --> 00:04:01.717 Growth is expected at a pretty moderate rate. 00:04:02.097 --> 00:04:06.467 Again, tempered and cautionary because at the same time we've 00:04:06.467 --> 00:04:10.277 heard that there are some companies that are quietly laying off people. 00:04:10.607 --> 00:04:13.747 There's still certainly a lot of financial discipline 00:04:14.037 --> 00:04:20.877 in focus for the year, but by and large, companies are cautiously optimistic. 00:04:21.187 --> 00:04:26.077 What I was, would say is, you know, nothing earthshaking and no big surprises. 00:04:26.187 --> 00:04:34.267 However, the last day of the AFPM IPC that changed a bit because the big surprise 00:04:34.267 --> 00:04:39.937 was on the morning of March 26th when the cargo ship Dali crashed into the 00:04:39.937 --> 00:04:45.147 Baltimore Bridge killing several people tragically and decimating the bridge. 00:04:45.177 --> 00:04:47.657 And I'm sure by now we've all seen the pictures and the 00:04:47.667 --> 00:04:49.577 images from that came from that. 00:04:49.917 --> 00:04:54.897 And then of course, impeding traffic in and out of that port for months. 00:04:55.397 --> 00:04:59.887 And that really brings me to the second theme of the conference, 00:04:59.947 --> 00:05:03.547 that I picked up, which is really around supply chain in focus. 00:05:04.047 --> 00:05:07.567 So we've talked about this a couple of times already this 00:05:07.567 --> 00:05:08.687 year on The Chemical Show. 00:05:08.717 --> 00:05:13.082 This expectation that we were, We're back to smooth sailing, so 00:05:13.082 --> 00:05:17.502 to speak, and yet we're seeing a lot of supply chain challenges. 00:05:17.842 --> 00:05:23.222 And really in many ways, these are knock on effects from the outages and 00:05:23.222 --> 00:05:27.242 the restrictions that one port has on the entire global supply chain. 00:05:27.462 --> 00:05:31.792 And in fact, a couple of people who, you know, expressed a little bit of surprise, 00:05:31.792 --> 00:05:36.412 but then also some greater understanding about what's really going on. 00:05:36.772 --> 00:05:40.582 , and really what we're seeing from a supply chain perspective is 00:05:40.582 --> 00:05:42.562 not so much the direct impact. 00:05:42.562 --> 00:05:45.782 In fact, one person's like, well, the Panama Canal is not that big of a deal. 00:05:45.782 --> 00:05:46.052 Is it? 00:05:46.112 --> 00:05:46.842 Oh yes, it is. 00:05:46.872 --> 00:05:52.162 It's, um, and in fact, go back and listen to episode 152, which is 00:05:52.232 --> 00:05:56.412 on the Red Sea and the Panama Canal Shipping Issues and Resolutions, where 00:05:56.412 --> 00:05:59.392 I talked to Farid from NUCO Logistics. 00:05:59.722 --> 00:06:02.272 We're seeing significant challenges, obviously from 00:06:02.272 --> 00:06:04.252 the Panama and the Suez canal. 00:06:04.312 --> 00:06:07.912 And now we're seeing challenges that are going to be arising 00:06:07.912 --> 00:06:10.652 potentially from the Baltimore port. 00:06:10.972 --> 00:06:14.592 Again, not always directly related. 00:06:14.622 --> 00:06:18.392 And in fact, if we take the Baltimore port, for instance, obviously still 00:06:18.422 --> 00:06:21.722 pretty early days, what the full on effect of this is going to be on 00:06:21.722 --> 00:06:25.812 the, on the chemical industry supply chain, probably not fully clear. 00:06:26.222 --> 00:06:27.912 But what we know is that. 00:06:28.357 --> 00:06:33.357 Each one of these outages has a knock on effect for the rest of the Marine 00:06:33.357 --> 00:06:39.067 movement in and out of other ports in and out of other shipping lanes, right? 00:06:39.117 --> 00:06:44.567 So what we've seen is extended transit time, which of course then creates a 00:06:44.567 --> 00:06:49.307 correlates, I guess, to higher inventory, higher working capital requirements 00:06:49.637 --> 00:06:51.987 and really the need for precision. 00:06:52.007 --> 00:06:53.887 So like it or not. 00:06:54.052 --> 00:06:58.702 The supply chain is going to be in focus for the remainder of 2024. 00:07:00.542 --> 00:07:05.282 Our third theme was around the need for global resilience, 00:07:05.522 --> 00:07:07.322 harmonization, and balance. 00:07:07.622 --> 00:07:09.802 And this actually came up really in. 00:07:09.852 --> 00:07:14.822 Very much so in our onstage speakers, which again, when we talk about AFPM 00:07:14.982 --> 00:07:17.982 IPC, it is speed dating for many people. 00:07:18.212 --> 00:07:24.502 AFPM brings a really great slate of topics to their main stage, 00:07:24.892 --> 00:07:26.352 bringing speakers and panels in. 00:07:26.577 --> 00:07:30.307 Unfortunately, not as well attended as any of us would really hope, I 00:07:30.307 --> 00:07:35.167 think given the amount of insight and effort that they put into it and the 00:07:35.177 --> 00:07:36.797 expertise that these people bring in. 00:07:37.217 --> 00:07:41.287 So, we talk about, when I talk about this, one of the things that came 00:07:41.287 --> 00:07:45.027 through was this need for strong global markets and economies. 00:07:45.027 --> 00:07:49.157 And in fact, Chris Krebs, who was one of the speakers he is 00:07:49.157 --> 00:07:54.597 former Homeland Security Former, former, um, CISA, Cybersecurity 00:07:54.597 --> 00:07:57.917 and Infrastructure Security Agency. 00:07:57.947 --> 00:07:59.777 I'm looking at my notes just as I'm doing this. 00:08:00.107 --> 00:08:04.987 Um, and he spoke about digitization and AI and cybersecurity. 00:08:05.007 --> 00:08:07.117 And that was one element of what he talked about. 00:08:07.367 --> 00:08:12.017 But he also talked about the reality is when you look at our global 00:08:12.457 --> 00:08:17.767 economic environment, economic, geopolitical, et cetera, right? 00:08:17.767 --> 00:08:18.787 Let's just talk about it. 00:08:19.047 --> 00:08:20.797 Our global, our global world. 00:08:21.022 --> 00:08:23.932 Business policy, et cetera. 00:08:24.952 --> 00:08:29.692 We really need a strong Asia, Europe, and North America. 00:08:29.702 --> 00:08:32.552 So you know, let's boil it down, China, Europe, and U. 00:08:32.552 --> 00:08:32.972 S. 00:08:33.052 --> 00:08:38.052 We need strong markets and economies in focus and in balance. 00:08:38.062 --> 00:08:41.062 So we've got a lot of trade tensions going on. 00:08:41.062 --> 00:08:45.022 We've obviously got some concerns and about Chinese growth and Chinese 00:08:45.022 --> 00:08:48.252 economy, but the reality is we need. 00:08:48.427 --> 00:08:53.037 The, the globe in balance and we need our markets to be in balance and we need 00:08:53.037 --> 00:08:55.187 to create harmonization across that. 00:08:55.187 --> 00:08:57.627 So that was one touch point on that. 00:08:57.917 --> 00:09:01.857 The second piece that came through and Peter Huntsman spoke at the 00:09:01.857 --> 00:09:08.177 event and he called for a true European industrial policy, right? 00:09:08.187 --> 00:09:14.637 To combat industry, de industrialization, to be more pragmatic. 00:09:15.307 --> 00:09:17.317 about decarbonization. 00:09:17.597 --> 00:09:21.507 And of course we heard a little bit of this harmonization at WPC. 00:09:21.547 --> 00:09:25.447 I talked about that last week on The Chemical Show and just this 00:09:25.447 --> 00:09:30.507 need for unification, not maybe not unification of policy, but certainly 00:09:30.867 --> 00:09:32.887 alignment and harmonization, right? 00:09:32.887 --> 00:09:36.027 There's always going to be some differences and differentiation and that's 00:09:36.027 --> 00:09:38.127 okay, but we want harmonization as well. 00:09:38.457 --> 00:09:43.327 And one of the things That that we talk about is the fact that, you know, 00:09:43.337 --> 00:09:47.467 numerous plants and assets have shut down in the past two years in Europe in 00:09:47.467 --> 00:09:51.087 particular, um, their current policies. 00:09:51.737 --> 00:09:55.042 are anti industry, right? 00:09:55.042 --> 00:09:58.402 Let's just call a spade a spade, especially when we look at some of the 00:09:58.832 --> 00:10:03.382 decarbonization requirements, greenhouse gas emissions requirements, other 00:10:03.382 --> 00:10:06.622 policies that are getting put in place, particularly around a sustainability. 00:10:06.622 --> 00:10:13.222 Appropriate in some ways, but when you look at the bigger picture, we're killing 00:10:13.222 --> 00:10:15.562 off industries were killing off business. 00:10:15.592 --> 00:10:20.982 It's making European companies less cost effective, harder to compete and 00:10:21.012 --> 00:10:26.227 ultimately shutting down business, which is bad for Europe and its people. 00:10:26.437 --> 00:10:30.137 Um, and it's really bad for the globe when you think about the need and the longterm 00:10:30.137 --> 00:10:35.727 effect of having strong economies around the globe, balanced industries and more. 00:10:36.047 --> 00:10:41.257 So that's the third thing that I want to emphasize is this need for global 00:10:41.257 --> 00:10:43.857 resilience, harmonization and balance. 00:10:45.237 --> 00:10:48.967 And then that ties in in some ways to my fourth theme. 00:10:48.977 --> 00:10:53.137 And I think this is one that I'm not sure everybody would say they 00:10:53.137 --> 00:10:57.197 picked up at AFPM, but I think it's one that comes through and it was 00:10:57.197 --> 00:10:58.947 certainly spoken about on stage. 00:10:58.967 --> 00:11:03.187 And this is around leadership and ethical leadership, right? 00:11:03.187 --> 00:11:07.667 So if I tie back to this European industrial policy that we just talked 00:11:07.667 --> 00:11:12.497 about a moment ago, that is a leadership issue, a European leadership issue 00:11:12.497 --> 00:11:14.837 that frankly the call from stage was. 00:11:15.352 --> 00:11:22.162 We need leaders to step up and be leaders and make decisions that are robust for 00:11:22.392 --> 00:11:27.292 business and people and for the, the fundamental effects that you want to have. 00:11:27.292 --> 00:11:27.582 Right? 00:11:27.992 --> 00:11:31.772 So, um, industrial policy, rational decarbonization, rational 00:11:31.772 --> 00:11:35.082 decision making, those were all calls for European leadership. 00:11:35.462 --> 00:11:38.832 I would say we want those same calls for leadership around the globe. 00:11:39.102 --> 00:11:43.987 And in fact, One of the topics that was on the main stage again and it's also a 00:11:43.987 --> 00:11:49.632 topic that you Frankly, that I pick up in sidebar conversations in the one on one 00:11:49.632 --> 00:11:52.692 meetings is around ethical leadership. 00:11:52.722 --> 00:11:58.372 So Gulay Serhatkulu from BASF led a talk about ethical leadership. 00:11:59.482 --> 00:12:00.622 Very insightful. 00:12:00.662 --> 00:12:01.792 Gulay is a great leader. 00:12:01.792 --> 00:12:04.842 In fact, if you have not heard her episode of The chemical 00:12:04.882 --> 00:12:05.972 Show yet, you should do that. 00:12:06.252 --> 00:12:10.442 She was on episode 63: Leveraging Partnerships, innovation, 00:12:10.442 --> 00:12:11.432 and Delivering Solutions. 00:12:11.797 --> 00:12:15.617 Great episode and some great insights about Gulay, um, and who she is as 00:12:15.617 --> 00:12:19.887 a leader and how she's developed her career and what's really important. 00:12:20.237 --> 00:12:23.867 But I think this theme of leadership is really critical and 00:12:23.867 --> 00:12:27.927 it's one that is always in focus. 00:12:27.927 --> 00:12:30.727 And if it's not always in focus, it should be in focus, right? 00:12:30.727 --> 00:12:33.522 So I think the chemical industry is filled with great leaders, 00:12:33.972 --> 00:12:37.492 setting a great example, expecting high levels of leadership and 00:12:37.492 --> 00:12:39.322 standards from those around us. 00:12:40.022 --> 00:12:45.212 The ethical leadership piece of this was really about putting people into 00:12:45.212 --> 00:12:49.532 management and leadership positions who will promote and be an example of ethical, 00:12:49.532 --> 00:12:53.592 appropriate conduct in their actions and relationships in the workplace. 00:12:54.002 --> 00:12:56.342 To me, it's really about, it's, it's putting your personal 00:12:56.342 --> 00:12:58.382 values into, into leadership. 00:12:58.962 --> 00:13:06.427 It's, about bringing, allowing people to question decisions appropriately. 00:13:06.497 --> 00:13:07.967 That's always, that's sometimes hard. 00:13:08.417 --> 00:13:13.117 Um, understanding that the decisions that you're making need to be 00:13:13.457 --> 00:13:17.047 moral and ethical and serving. 00:13:18.487 --> 00:13:22.177 Your company appropriately, the country appropriately, the 00:13:22.177 --> 00:13:23.707 industry appropriately, right? 00:13:23.707 --> 00:13:25.927 So it's a bit of this, not being single minded. 00:13:26.337 --> 00:13:29.137 Uh, we've had a few examples of bad actors this year. 00:13:29.937 --> 00:13:31.367 I don't know enough details. 00:13:31.467 --> 00:13:34.412 If you want to ask me about that, I'll can share what I know. 00:13:34.702 --> 00:13:40.642 But I think this aspect of leadership and this call for leadership within 00:13:40.642 --> 00:13:45.792 the industry, outside the industry and influencing it is a theme that I'm 00:13:45.792 --> 00:13:47.832 picking up a little bit more this year. 00:13:47.832 --> 00:13:49.192 And in fact, certainly got that. 00:13:49.297 --> 00:13:54.357 In AFPM IPC picked up on some of that at WPC and I think we'll be seeing 00:13:54.367 --> 00:13:56.267 more of it as the year progresses. 00:13:56.327 --> 00:13:59.127 So those are my four themes. 00:13:59.137 --> 00:14:04.427 And the, some of the things I observed and heard at AFPM IPC, how about you? 00:14:04.827 --> 00:14:05.587 What did you hear? 00:14:05.917 --> 00:14:08.707 If you were at that conference or if you have colleagues that attended, 00:14:09.497 --> 00:14:13.087 shoot me an message, send me a message on LinkedIn, shoot me an 00:14:13.087 --> 00:14:15.087 email, would love to hear from you. 00:14:15.467 --> 00:14:18.587 And if you are not already subscribing to The Chemical Show. 00:14:18.862 --> 00:14:19.822 Definitely do so. 00:14:19.822 --> 00:14:23.202 You can subscribe to our email list at the chemical show. 00:14:23.402 --> 00:14:27.442 com and we will add you to our list and we don't spam you, but you get an 00:14:27.472 --> 00:14:31.762 update about what we're doing on a weekly basis and sometimes a little bit more. 00:14:32.132 --> 00:14:36.139 And then also subscribe to us on Apple, Spotify, and YouTube. 00:14:36.139 --> 00:14:39.422 And as my kids would tell me to say, or actually they'd tell me not to 00:14:39.422 --> 00:14:41.812 say smash that subscribe button. 00:14:42.127 --> 00:14:43.397 Smash the subscribe button. 00:14:43.707 --> 00:14:45.847 We'd love to have you as a subscriber. 00:14:45.857 --> 00:14:50.007 Want to make sure you continue to get great content from The Chemical Show. 00:14:50.027 --> 00:14:51.907 So again, thank you for joining. 00:14:51.917 --> 00:14:56.397 Keep listening, keep following, keep sharing, and we'll talk to you again soon. 00:14:59.987 --> 00:15:01.767 voiceover: We've come to the end of today's podcast. 00:15:02.167 --> 00:15:04.717 We hope you enjoyed your time with us and want to learn more. 00:15:05.137 --> 00:15:07.417 Simply visit thechemicalshow. 00:15:07.417 --> 00:15:10.167 com for additional information and helpful resources. 00:15:10.807 --> 00:15:14.797 Join us again next time here on The Chemical Show with Victoria Meyer.