The chemical production sector is fast becoming one of the strongest sectors since 2020. This came as a surprise during the pandemic when every other sector was folding up. The chemical firms stayed strong and continued to improve since then. However, just because the industry didn’t collapse during the pandemic doesn’t mean that it doesn’t face some challenges. New issues will emerge later on if the old ones are not addressed. This is why Kaushik Palicha advocates the use of modern technology to provide solutions to issues the chemical industry faces.
Kaushik Palicha is a founder – director of Ram Charan Company Pvt. Ltd and two other companies. He also supervises these companies as a managing director. As a director, Kaushik has led the previously traditional group of companies to become successful new-age companies. These companies deal with energy storage, new materials, desalination, waste energy, and modern energy production.
Solutions to Chemical Production Industry Problems
Skill gap challenges
Presently, several experienced old workers in the chemical industry have either retired or resigned from their jobs. This may be due to old age, health issues, or any other reason. Unfortunately, as they retire, only fewer workers are employed to replace them. This has created a huge skills gap which has affected the sector. Right now, there is an employment crisis in the industry because chemical firms find it hard to get competent new workers. These firms look for workers that have digital skills and scientific knowledge. A worker with digital skills and scientific knowledge can integrate them into his work to achieve more efficiency. Moreover, if such a person encounters problems while at work, he would be able to find effective solutions to them.
However, such a person is rare to find, and the industry is suffering for it.
- The industry needs to collaboratively work with other sectors and share knowledge internationally and organizationally.
- Additionally, senior workers in the chemical industry should transfer their knowledge and skills to new workers or unskilled workers. This will help to reduce the skills gap.
- The use of advanced technologies and digital tools that can be configured is important. This will also improve their workers’ efficiency and talents.
Work safety challenges
Occupational hazards often occur in chemical companies. It is not surprising to see this, as chemical production involves the use of big equipment and harmful chemicals. Some firms take preventative measures against work-related accidents. While those who failed to do so have faced the consequences of their negligence. Even though they faced the consequences, it is the affected workers who suffer the most.
Nevertheless, no matter how careful the firm is, accidents are bound to happen, especially if the firm expands.
Still, chemical firms should be extra careful when it comes to occupational accidents.
- Chemical firms should improve their technologies and use advanced production techniques.
- They should conduct a daily safety check before commencing work for the day.
- Executives and workers should never ignore warning signs or signals.
Chemical production is highly dangerous to the environment because it produces high carbon, which is released into the atmosphere. The release of carbon into the atmosphere constitutes air pollution and destroys the atmosphere. This in turn changes the climate and causes global warming. Yet, chemical production is important to technological firms that make low-carbon products. Hence, chemical companies don’t know what to do. If they produce chemicals, it will harm the environment. And if they don’t, several industries that need chemicals will be affected.
- Chemical firms should increase their work efficiency and use renewable materials.
- In addition, there are modern technologies that prevent carbon emissions and other harmful chemicals.
According to Kaushik Palicha, it is common knowledge that chemical production firms rely heavily on the supply-chain industry. They need supplies of raw materials from various places to manufacture their products. But this can be a problem due to some factors, such as political unrest, pandemics, and so on. If any of these happen, the supply chain from that region would be cut off or would be reduced. In return, the chemical companies will have little or no raw materials to produce chemicals, resulting in scarcity of their products.
- The companies should find out what is causing the supply chain problem. Then they should balance the demand and supply by managing their inventories.
- In addition, they should not isolate other departments from their supply chain department.
Operational cost challenges
Currently, chemical firms are unable to deal with high operating costs due to the emergence of rival companies. These rival companies produce the same chemicals at a cheaper cost. The reason for the cheaper cost of goods is the lower cost of the production sector in their region. They also find it easy to enter the foreign market to sell their goods.
- Chemical industries can solve this problem by collecting and analyzing market data. This will help them to identify what the customers want and the market trend, and decide what to do.
- The firms should refine their business operations with the use of technology.
To cap it all, the world cares more about global warming than the production of goods. Therefore, climate activists urge chemical firms to find ways to produce non-harmful chemicals or use alternative materials. They also advised the firms to stop carbon emissions that cause environmental pollution. According to Kaushik Palicha, chemical industries should find a balance between the environment and their work.