No Longer Passive Waiting: How U.S. Specialty Chemicals Proactively Create Market Stability

Executive Summary

the latest "Pulse Survey" series of reports released by the American Chemical Manufacturers and Subsidiaries Association (SOCMA) shows that the U.S. specialty chemicals industry is experiencing a significant recovery in confidence. After the market uncertainty in the first half of the year, the industry has shown strong adaptability. Enterprises are creating market stability through active strategic adjustment, rather than passively waiting for the external environment to improve.

Significant improvement in industry confidence indicators

the June survey data revealed a key turning point in industry attitudes. **Nearly 60%** of U.S. specialty chemical companies expect to continue to grow in the second half of the year, **and about 20%** expect strong growth, a significant shift from the uncertainty expressed in the survey earlier this year.

Increased business confidence in market stability is reflected in a significant improvement in contraction expectations: first half of 2025 nearly 40% of enterprises are expected to contract to varying degrees, with the expected contraction ratio falling to 28% in the second half of the year., a decrease 12 percentage points, indicating a significant increase in demand visibility.

Current business confidence in the U.S. specialty chemicals industry is generally improving, **85% the companies surveyed have a medium to high level of confidence in maintaining operations and executing their strategies over the next 3-6 months.57% **Medium Confidence,** 28% expresses very confident. Only15% **lack confidence in the outlook, a significant improvement over previous quarters.

Positive impact of policy environment

**33%** of respondents believe that federal policies could be a catalyst for growth, mainly in the form of manufacturing return policy support and local manufacturing support measures. Approximately 1/5. The company said that regulatory transparency has increased, especially in important regulatory frameworks such as the Toxic Substances Control Act, which provides clearer guidance for long-term planning.

Enterprise strategy focus change

in the face of uncertainty on the demand side, U.S. specialty chemical producers are adjusting their strategic priorities. * * 41% * * The focus on new customer development is more expansive than the previous focus on maintaining existing customers. SOCMA believes this reflects "broader business confidence and market expansion willingness of producers".

**30%** of enterprises rank cost management as a second priority and are currently seen as an effective means of securing reinvestment capacity, reflecting their strategic approach to finding a balance between expansion and efficiency.

Risk control and coping strategies

the three main risks faced by enterprises are ranked in order of importance: customer order reduction risk ( 33%) remains the biggest concern, geopolitical uncertainty ( 17%) and raw material cost fluctuations ( 15%) ranked two or three.

Companies are reducing their risk exposure through diversification strategies. Flexible forecasting mechanisms, cash flow planning optimization and staffing flexibility should be adopted for order reduction; geopolitical risks should be addressed through regional sourcing strategies and supplier diversification; hedging strategies and supply chain localization should be implemented for cost fluctuations.

Industry Outlook

SOCMA emphasized: "SOCMA members are recalibrating their strategies, increasing investment and moving forward with clear goals. Although the external environment continues to change, one thing is very clear-the specialty chemicals industry will not wait for market stability, but will take the initiative to create stability. "

this statement reflects a fundamental shift in the industry: from reactive responses to proactive shaping of the market environment. While challenges remain and the path remains complex, the industry is much clearer than it was a few months ago.

Companies are laying the groundwork for the second half of the year to focus more on strategy execution rather than on market uncertainty through clear growth plans, solid customer channels and operational resilience to risk.