Episode 1425: Think Tank: Europe distributors battle tough conditions, adapt to geopolitical turmoil

Europe’s chemical distributors’ margins are under pressure as geopolitics roils the global economy, but they are also flexing to new business models for future growth.

-          Cost inflation impacting margins for distributors – logistics, energy, labor, working capital 

-          Tougher to pass price increases to customers

-          Intense competition from cheap imports into Europe

-          Economic uncertainty affecting customer confidence

-          New business models needed as the old global world order changes 

-          Distributors, being less asset-heavy, are well placed to adapt to changing trade flows and tariffs

-          Unstable tariff regimes are bad for demand due to the uncertainty they create

-          Tariffs can cause a whiplash as flows redirected to other regions