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CMOs : Rising to the challenges
Rodney Steel , chief executive of the BCMPA , learns from members how events of the past two years have shaped the speciality chemicals sector
According to Alliedmarketresearch . com , with demand continuing to grow in automotive , textile , and food and beverage industries , especially in developing countries , the global speciality chemical sector is projected to reach $ 953.9 billion by 2027 , growing at 5 %/ year . Sector growth trends include a widening of application bases , demand for improved and reliable crop quality , and further industrialisation . On the back of this , contract and toll manufacturers have been witnessing significant growth in demand for their services , as brands and retailers increasingly recognise the key role that outsourcing plays . In particular , engaging with CMOs provides the ability to explore new sectors or test and develop innovative , niche products without many of the underlying costly outlays in plant , staffing and production resources . This allows both existing companies to broaden their offering , and newcomers to enter the market . Neatcrown Corwen is one CMO that has been able to help businesses explore new opportunities , according to business development manager Karen Jones . “ The largest sector we work in remains home and garden . However , recently we have expanded our offering and our team to work with industry leaders and innovators in developing and manufacturing agricultural products for sustainable crop production ,” she says . Another growth area where contract manufacturers have adjusted to supporting their clients is in the area of e-commerce , supplying products directly to consumers ’ doors to overcome the demand fuelled by pandemic lockdowns and retail challenges . The result of developments like these is that CMOs are now often regarded as permanent fixtures in the marketing plans of many businesses , offering a ‘ one-stop shop ’ for their customers . Many British Contract Manufacturing & Packaging Association ( BCMPA ) members are reporting that they have never been busier . Daniel Marr , CCO of Airedale Group has witnessed this . “ Despite the challenges of COVID-19 and Brexit , and now the Ukraine conflict , our business has continued to grow in both existing and new markets , with clients relying ever more heavily on us to deliver uninterrupted supplies of both raw materials and manufactured products ,” he says .
Agility is vital
One of the cornerstones of CMOs ’ continued success is their flexibility and agility in being able to adapt quickly to changing market requirements . Never has this been more crucial than in recent months . “ Urea , nitrate salts and phosphates are the ingredients which we are finding most scarce , and prices have
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