The Society of Chemical Manufacturers and Associated Companies (SOCMA) has released its 2024 Contract Manufacturing Outlook. The Outlook “compiles industry data specific to the specialty and fine chemicals, contract manufacturing and contract manufacturing sectors to provide insight into buyer-fee relationships.”of report.
As “the only U.S.-based trade association dedicated exclusively to batch manufacturing in the specialty and fine chemicals industry,” SOCMA “provides industry data for the specialty and fine chemicals market,” as detailed in the report. It’s in a unique position to be able to edit and customize it.” “It is part of the association’s robust commercial services and industry intelligence resource program, including the SOCMA Trade Show and Lead Sheet Service,” the report states.
SOCMA, in partnership with Vault Consulting LLC, conducted a survey of its organizational and industry network members to identify “chemicals and technologies in high demand, industry-ready production capacity, and geographic location/market segment. , and labor and investment trends.” To inform you of the report’s conclusions.
To learn more about the report’s findings and decisions that are applicable to the cosmetics and personal care products industry, we spoke with SOCMA President and CEO Jennifer Abril for her insights.
methodology
As detailed in the report, SOCMA’s 2024 Contract Manufacturing Outlook Survey was created by partner Vault Consulting LLC and was “distributed by email to 129 companies within SOCMA’s industry network, including member and non-member companies. It was shared on social media with both member companies.”
The survey “gathered information on issues such as in-demand chemicals and technologies, industry-ready production capacity, workforce, investment, and business trends,” and said, “SOCMA manufacturers More than 40% of our members and 13 non-manufacturers responded. “Member companies also participated in the survey,” the report states.
To prepare the data for analysis, Vault Research analysts review each company’s survey data for any obvious quality concerns, administrative errors, or missing data, and then contact participants. Following this process, “agreed data compilations are incorporated into the final database and this report,” and “responses are categorized by market, company type, geographic location, and revenue.” ” explains the report.
Analysis of general results
In its executive summary, the report said the outlook for next year is expected to be positive overall. For example, the report explains: “The data reveals significant trends in capital spending for both rate collectors and their customers. [as] 75% of customers plan to invest in capital expenditures in the next year to facilitate expansion of new projects, and 95% of rate collectors are increasing their business capital, including projects tailored to specific customer initiatives. We are preparing to strengthen our growth. ”
Among the report’s key findings: “Regardless of classification, all survey respondents expect sales for their business units, including line products and contract manufacturing/sales, to remain flat or increase. ” was included in the judgment. Additionally, the report states, “No respondents expected a decline in sales in any business sector.”
Additionally, the report finds that “there is an alignment between the attributes customers look for in toll collectors and the value propositions toll collectors value when selling their services,” which will also be seen in 2024. It presents a positive outlook for the year.
Decisions specific to the cosmetics and PBC industry
Of those who responded to the survey, “60% said they participate in the personal care/cosmetics market,” Abril said, adding, “37% of toll collectors said they were cGMP certified. ” he said. Intensive analysis of her data reveals “some notable data points in the cosmetics and personal care space. Significant untapped potential exists in the U.S. personal care products sector. ” she explained.
“At the heart of SOCMA’s mission is our commitment to bridging the gap between the capabilities of U.S. specialty chemical manufacturers and the evolving needs of our customers,” Abril explains, so it is important to note that: It is important. The industry has underutilized capabilities. ”
As evidenced by the data, she added, “While 37% of toll collectors boast cGMP certification, a notable 30% of customers sell products that require facilities with regulatory certifications such as GMP.” say they face hurdles when outsourcing.” Therefore, she concluded that “bridging this gap remains critical to securing the country’s supply chain and ensuring industry capacity is able to meet customer demand.”
