The world is potentially on the brink of an age of new powerful materials, ushered in by innovation in the chemicals industry. But to be central players in this story, today’s incumbent chemicals companies will need some vital prerequisites: restructuring of their product portfolios, successful exploitation of digital technologies, and rewriting business models to generate higher returns on their investment in innovation.

U.S. chemical production expanded at a slower pace in 2019 due to trade challenges and slower growth in several key end-use markets for chemistry, according to the American Chemistry Council’s (ACC) Year-End 2019 Chemical Industry Situation and Outlook. Weakness in global manufacturing and uncertainty in trade policy will further moderate U.S. chemicals output growth in 2020.