Any industry you operate in has its own challenges and difficulties. The chemical manufacturing industry is not one without challenges. In this blog we will discuss about the various challenges faced in chemical manufacturing industry and how to overcome them.
 

1. Regulatory Issues: Chemical manufacturing industries have to be compliant to regulatory requirements. The regulations range from labour, commercial, environmental, health and safety, finance and taxation, licenses etc. Resultingly, the compliance implications for chemical companies are huge and need to be maintained meticulously.

 

2. Environmental Challenges: Chemical industries are a huge source of pollution as they emit harmful gases in the atmosphere causing enormous amount of air pollution. Hence, the aim of the business should not be only about earning profit but also protecting the environment. They have a moral responsibility towards the society as they are conducting their business in the society, they are employing people from the society and they are selling their products in the society. The industries who are able to fulfil their corporate social responsibility, gain good reputation among their consumers.

 
 

3. Unpredictable prices - The prices of raw materials fluctuate very often. Due to which it becomes difficult for the manufacturer to predict the price at which raw materials should be bought. If the raw materials are bought at a higher rate, and the rate of raw materials unexpectedly comes down, it affects the profitability of the manufacturers and also becomes difficult for them to sell their product.

 

4. Huge Capital Investment- Operating a chemical manufacturing industry requires a huge capital investment in terms of factory, machineries, pollution control equipment’s, factory operating license, safety equipment’s.

 

5. Quality Control - Quality control refers to a set of procedures intended to ensure that a manufactured product adheres to a set of quality criteria or meets the requirements of the customers. Maintaining quality of the product is of utmost importance because providing quality products to your customers ensures a loyal customer base, gained reputation, new customers.

 
How to overcome the challenges?
 

1. Regulatory issues can be overcome by always staying one step ahead. This can be done by keeping all licenses up to date, keeping records of all kinds of data which may be required for audit, ensuring adherence to labour laws.

 

2. Manufacturing companies can protect the environment by installing pollution control machineries in factories and investing in effluent treatment plants. Investment in such pollution control measures showcases that the company is fulfilling its corporate social responsibility which in the long run helps the company to gain reputation, trust among its customers.
3. Price uncertainty can be overcome by constantly staying updated with any current news about the raw material and being in constant touch with the suppliers for the prices. The manufacturer should be in touch with 3 - 4 suppliers to ensure the raw materials is bought at the lowest rate.

 

4. The initial investment in setting up a plant is very high. Therefore, there should be proper planning and budgeting so that money is invested in those areas which are of prime importance.

 

5. Quality control is not a onetime task. It requires constantly monitoring the manufacturing process so that the quality is not compromised. Special attention is required at each step of manufacturing to ensure quality of the finished products. Quality management can be achieved by keeping the production area clean and hygienic and conducting regular maintenance of machinery. The company should focus on manufacturing limited products so that the quality of the products is not compromised. The main aim of the company should be quality and not quantity.

 
These are the few challenges faced by the chemical manufacturing industry. However, if right measures are taken these challenges can be overcome.