Different industries are constantly changing. In her article in Harvard Business Review, Ann McGahan recommends that an entrepreneur must constantly be aware of how their industry is changing. This helps you prepare your business to adapt to different industry changes. Yet, this is not always easy because sourcing information is a complicated process. This article will look at three different industries to understand the developments they have gone through.
Chemical Manufacturing Industry
The chemical industry uses raw materials such as natural gas, minerals, and oil to make new and usable products such as plastics, paint, and drinks. The chemical industry was hit by the 2019 pandemic, which slowed operations and caused mass layoffs and supply shortages. However, according to McKinsey & Company, three trends are dominant in the chemical manufacturing industry:
- Sustainability: Consumers want products that don’t harm the environment. One of the changing dynamics in the chemical industry is packaging. According to Future Marketing Insights forecasts that demand for industrial chemical packaging solutions will rise from 2.9 billion units in 2021 to 4.6 billion units by 2031.
- Technology: Constant renovations and innovations such as machine learning, AI, and social media marketing are revolutionizing how firms in the chemical industry operate. For example, through AI, it’s possible to automate processes, reduce production time and provide real-time data for analysis. These changes will continue to smooth the process as they continue to develop.
- Geopolitical Tensions: Demographics change as countries such as China rapidly increase their industrial sectors. Economic development in the East has made countries such as China and Taiwan power players in the chemical industry, especially since they constitute a big percentage of the supply and demand. Other companies will have to find ways to meet the demand of these larger markets if they hope to compete.
Construction Industry
Unlike the chemical industry, the construction industry was quite resilient during the COVID-19 pandemic. Still, the industry continues to face challenges such as supply shortages. Some raw materials are locally sourced, providing employment and boosting the economy. According to the International Energy Agency, as of 2020, there were 98 cement production facilities in the U.S., with two in Puerto Rico.
Just like the chemicals industry, the construction industry is being changed by technology. For example, 3D-printed houses are no longer fiction. Developers are experimenting with refugee centers and schools. However, the industry has also been hard hit by worrying trends such as a declining workforce. It’s not that people aren’t willing to work in the industry, there’s just a declining population of well-trained workers who can assure quality.
Home Improvement Industry
The home improvement industry is one of the sectors growing stronger, especially in the post-COVID era. People want to live in highly functional, aesthetically pleasing, creative spaces. Although the DIY approach is gaining traction, employment opportunities are also growing.
For example, according to the U.S. Bureau of Labor and Statistics, HVAC employment is expected to grow by 5% between 2021 and 2031. Most American homeowners plan to undertake a home improvement project involving heating and cooling. Here are two other dominant trends in the home improvement industry in 2023.
- Energy Efficiency: Homeowners are more conscious of their energy spending. Many are investing in sustainable energy sources such as solar, efficient, and smart appliances and educating themselves more on energy efficiency. Additionally, they’re making energy-efficient changes to their homes, such as replacing their windows for ones that retain temperatures.
- Outdoor Spaces: With COVID-19 constricting many people at home, having an attractive and functional outdoor space is a top priority for homeowners. This means more patios and decks, outdoor kitchens, and exquisite landscaping. With rising material costs, many search for cost-effective options.
Various industries change differently. For example, while the pandemic hit the chemical manufacturing industry, the construction industry grew slightly despite challenges. However, some trends, such as sustainability and technology, are revolutionizing every industry. being mindful of these trend is necessary to help your business survive on the market.
