November 15, 2024
By Jenny Gaines, VP Membership

Advancing Innovation, Sustainability, and Workforce Excellence: Key Insights from SOCMA’s Recent Site Visits

At SOCMA, we’re committed to staying connected with our members, understanding their challenges, and learning from their innovations. Our SOCMA team recently visited six member companies in North Carolina and South Carolina and gained valuable insight into industry trends, including shifts in product development, workforce dynamics, regulatory challenges, and sustainability efforts. Here’s a look at some of the overarching themes we observed. 

Evolving Business Models and Product Development 

Across facilities, members are actively adapting their business models to respond to market shifts. Historically grounded in toll manufacturing, some companies are now aiming to expand their proprietary product lines to meet demand and diversify income streams. For instance, one facility has grown from producing dyes and pigments for textiles during its early years to developing its own products and filing new patents, a shift spurred by changes in the specialty chemical industry. 

Another facility is leveraging available production capacity to enter new markets, exploring product lines in oilfield chemicals, erosion inhibitors, and other specialty chemicals. While diversifying product portfolios can be challenging, these companies are seeing promising opportunities for growth, particularly through toll manufacturing partnerships. 

And yet, there are other members who have been at capacity for better than four years, and they are continuing to grow and evolve through their current core competencies. 

Workforce Development and Retention Strategies 

Workforce retention and training remain essential across the sector, but companies are facing challenges with turnover and new hire retention. At some facilities, established employees have a strong track record of longevity, with a nearly 0% turnover rate among those with 5-10 years of service. However, retaining new hires has proven difficult, with some facilities reporting up to 90% turnover during the 30-day probationary period. 

SOCMA members are implementing structured onboarding processes that include week-long training programs with an emphasis on safety and environmental protocols. Additionally, initiatives like bonuses for attendance and employee referrals are being used to attract and retain talent. 

One company hired an educator to facilitate the company’s ChemOps Training program in a classroom-style setting. And with increased regulatory complexity and compliance, they’re also focusing on leadership training for R&D, engineering, production management, and maintenance management, using the Gallup Strengths Program (Volume 2). The training program has especially been beneficial in addressing challenges in managing multi-generations and emphasizes the importance of soft skills to a team that is largely made up of chemists and engineers. 

Regulatory compliance remains a significant focus, especially with recent increases in hazardous waste, RMP, and PSM requirements. Members are keen to see practical updates to these regulations that allow for safer operations without excessive burden. They’re looking for common-sense regulatory adjustments. 

Resilience in the Face of Global Supply Chain Challenges 

Supply chain disruptions, though improving, continue to impact operations. Factors such as port strikes and global shipping delays have affected the timely movement of goods, with some members reporting delays due to rolled containers when ships reached full capacity. Facilities have adapted by focusing on bulk transportation options, which help streamline logistics but are sometimes difficult to secure. 

Additionally, members are closely monitoring trade policies, such as the Miscellaneous Tariff Bill and tariffs on imports from China, to assess potential impacts on their cost structures and competitive positioning. Advocacy efforts remain essential in helping businesses navigate these issues, and SOCMA members continue to engage with legislators and lean on SOCMA to support fair trade practices. 

Sustainability and Environmental Stewardship 

Finally, sustainability initiatives are a shared priority. Members are working to reduce their environmental footprint through recycling, waste recovery, and exploring innovative applications for by-products, such as repurposing carbon-rich emissions. In response to increasing regulatory demands, companies are also seeking tools for tracking and reporting GHG emissions (Scope 1, 2, and 3) to meet their sustainability goals. 

As SOCMA members look to the future, their commitment to sustainability is clear. Many are eager to take advantage of resources, such as industry templates for GHG reporting, to simplify compliance and enhance their environmental stewardship. 

These visits have deepened SOCMA’s appreciation for the resilience and adaptability of our members navigating a rapidly changing industry landscape. SOCMA remains the trusted resource for specialty chemical manufacturers and service providers in navigating regulatory challenges and identifying opportunities for growing and sustainable U.S. supply chain. Now more than ever, we encourage you to lean into SOCMA as your trusted source for expertise and insight.  

Not a SOCMA member? Contact me at jgaines@socma.org for more information. 

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