FOR IMMEDIATE RELEASE
December 04, 2024

Contact:
Nate Bell
Sr. Manager, Communications & Programs
571-348-5100
nbell@socma.org

SOCMA’s 2025 Contract Manufacturing Outlook Report Highlights Strategic Resilience Amid Economic and Market Pressures

Arlington, VA – The Society of Chemical Manufacturers & Affiliates (SOCMA) has released its 2025 Contract Manufacturing Outlook Report, demonstrating how specialty chemical manufacturers are adapting and strengthening their operations while navigating economic pressures and market challenges. 

This second-annual report, developed with Vault Consulting LLC, provides detailed analysis of adaptive strategies, market trends, high-demand chemistries, operational capacities, and workforce solutions, based on survey data from member and non-member companies. 

“SOCMA is an essential partner to the specialty chemical industry, providing the intelligence and resources businesses need to build resilience in a complex and ever-changing market,” said Jennifer Abril, SOCMA President & CEO. “The 2025 Contract Manufacturing Outlook Report continues our commitment to equipping industry leaders with the insights and tools necessary to maintain operational strength and competitive advantage—even amidst economic uncertainties.” 

Key Highlights: 

  • Economic and Political Pressures: Rising inflation, raw material costs, and supply chain disruptions are driving companies to prioritize operational efficiency. The uncertain political climate leading into the 2024 Presidential election has prompted businesses to delay projects and take a cautious approach to investments. 
  • Labor and Workforce Trends: Despite economic pressures, companies are retaining skilled workers and offering incentives to improve efficiency and prepare for regional expansion. Labor strategies emphasize technical expertise and operational resilience. 
  • Chemistry Capabilities in Demand: Customer priorities focus on technologies including esterification, ethoxylation, hydrogenation, and distillation. Finding partners with regulatory expertise in Process Safety Management (PSM), Risk Management Programs (RMP), and Good Manufacturing Practices (GMP) remains challenging. 
  • Onshoring and Investment Challenges: While optimism exists around reshoring opportunities, regulatory hurdles, high production costs, and limited manufacturing capacity are significant barriers. Companies are maintaining core operations rather than pursuing extensive new development. 

The report complements SOCMA’s portfolio of commercial services and industry intelligence programs, including its Lead Sheet Service and SOCMA Show. Through quarterly pulse polls and data analysis, SOCMA delivers actionable intelligence to help members navigate challenges across the specialty and fine chemicals value chain. 

To download the 2025 Contract Manufacturing Outlook Report, visit https://www.socma.org/2025-contract-manufacturing-outlook-report/

About SOCMA: SOCMA is the only U.S.-based trade association dedicated to the specialty and fine chemicals industry. Visit https://www.socma.org. 

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