ICIS - chemical podcasts Episode 1355: Think Tank: Israel/Iran conflict hits chemicals, distributors adapt to VUCA world
Jun 17, 2025
Dorothee Arns, Director General of the European Association of Chemical Distributors, discusses how the Israel/Iran conflict and other geopolitical issues are shaking up the chemical distribution sector. Paul Hodges, Chairman of New Normal Consulting, shares insights on the overcapacity crisis driven by China and the resulting volatility. The conversation highlights the urgent need for innovation and local sourcing to navigate these challenges. With prolonged uncertainty ahead, both guests emphasize the importance of agility in supply chains to mitigate risks and harness new opportunities.
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VUCA Challenges and Opportunities
- Chemical distribution faces unprecedented volatility, uncertainty, complexity, and ambiguity (VUCA) due to geopolitical tensions and sluggish demand.
- Despite challenges, distribution's agility and supply chain excellence present opportunities to be reliable partners in uncertain times.
Europe's Overcapacity Impact
- European chemical overcapacity and plant closures stress value chains and raise concern over supply reliability.
- Distributors see opportunity in importing from other regions but worry about Europe's growing dependency and environmental footprint.
Strategies To Build Supply Resilience
- Build resilience by diversifying sourcing, logistics, and customers to manage constant geopolitical and trade uncertainties.
- Embrace innovative inventory management and strengthen partnerships to enhance supply chain reliability and sustainability.