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Total change in process industries and electronics

Manufacturing, services, operations, IT – every aspect of chemical, pharmaceutical and electronics companies is changing

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Industry with a sense of purpose

Chemicals, pharmaceuticals, and electronics touch almost all aspects of our lives. They are drivers in making the biggest trends a reality. Today, these trends are more seismic and fast-acting than ever.

Process industries and electronics companies are re-tooling themselves to cut emissions. They are also trying to be closer to their customers, meet consumer-driven demands, and to communicate a wider sense of social and environmental purpose. 
 

The future of the environment: It’s in your hands

Close up of tablets in packing machine in pharmaceutical factory

From a high-volume chemical shipment to a personal smartphone: anything that is manufactured in process and electronics industries comes with an emissions' cost. As consumption increases, manufacturers are racing against time to lower their environmental impact at every stage: from raw materials sourcing to product lifespan and circular economy solutions.

However, it is in manufacturing where the biggest gains can be achieved. 70-80% of the lifecycle carbon emissions of an electronic device are created during manufacturing. 
 

Companies follow the data when cutting emissions

Computer circuit board with chips, resistors and processors

This is leading to the rise of full energy management systems, which take a ‘big data’ approach to production efficiency. Through IoT manufacturing devices, the system can monitor energy consumption at a granular level, preventing energy spikes and finding ways to reduce expenditure without jeopardizing mission-critical processes.

This end-to-end system can offer a new level of insight into where emissions are really incurred. They are the next generation of climate-smart technology helping manufacturers comply with regulations, cut costs, and meet the demands of sustainability-focused customers.
 

Resilience drives total supply chain transformation

Reagents Bottle at Annulus Production Line

Merely optimizing production is not enough to cut emissions. Entire supply chains need to be optimized. After the disruption caused by the pandemic, companies over the world are redesigning supply networks to add flexibility, redundancy, and a greater degree of localization. 

With significant rise in raw materials requirements, chemicals and electronics are affected the most. Industry 4.0 solutions can play a key role here: AI to provide insight on optimal timings and reduce downtime, and blockchain to provide transactional transparency. As uptake accelerates, change becomes default rather than an option.
 

What does tomorrow’s business model look like?

While industry leaders struggle with global challenges, they are also facing increased competition, driven by fast-proliferating start-ups and developing economies taking a greater market share. 

Hence, they must adopt new offerings inspired by consumer industries. In these new business models, pricing is set dynamically by AI, the entire offer-to-cash loop is shortened, and customers buy integrated, instantly available services rather than simply products.

IT needs to support this new model, not get in the way. When software and processes function together seamlessly, it will be fully realized.

The size of the sustainability opportunity

6.2 million

BASF’s integrated approach to sustainability saved it 6.2 million tons of CO2 emissions in 2020¹

$ 1.2bn

The amount pharma manufacturers will spend on data analytics by 2030²

74%

of CEOs agree that decarbonization requires significant changes to the business model³

2x

Global waste produced from electronics could double by 2050⁴

¹BASF, ²ABI Research, ³Eversheds Sutherland, ⁴ WE Forum

Kick-start your transformation

Future-proofing business models start with embracing innovations. With our digitization workshops, we can help you unlock the power of these innovations and enable you to fulfill your responsibilities as a modern, sustainable supplier. 

Trends in chemistry and pharma

How are the chemical and pharma industries transforming? Our trendbook identifies the 10 most important change areas, driven by sustainability, technology, and growing competition.

Further resources for CPEU companies in Europe

Our solution for industries

View our full chemistry and pharma solution as part of the future of industries map.

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