Recruitment Trends in the Chemical Industry (Chemicals/Materials)
Latest Trends in the Chemical Industry
For general chemical manufacturers, there has been a noticeable increase in the pace of change, driven by factors such as entering new business fields and pursuing M&A activities as part of a strategy of “selection and focus.” These efforts have extended into new sectors like life sciences and materials for high-speed communication.
Amid intensifying global competition, keywords such as “digital transformation (DX),” “carbon neutrality,” and “semiconductors” are driving new initiatives across the industry. In terms of digital transformation, companies have been working on digital integration in R&D and production under the themes of “smart factory promotion” and “materials informatics.” More recently, however, businesses are beginning to adopt digital tools in sales and marketing, aiming for a broader transformation of business models.
Efforts around “carbon neutrality” are also gaining momentum, as sustainability becomes an increasingly important focus. Manufacturers are expanding into new fields, including providing materials that facilitate decarbonisation and carbon neutrality, as well as recycling operations. Additionally, demand for semiconductors is rising, especially in electronics, and companies are broadening their presence in this sector. Large corporations are beginning to collaborate with SMEs, investing in eco-material ventures to commercialise them. We can expect more SMEs to enter the environmental business sector in the coming years.
Another emerging trend is the accelerated development of life sciences and healthcare businesses. Companies are applying their existing technologies to create new businesses, as well as engaging in M&A activities to integrate external ventures. With changing industrial structures and the rise of global corporations, traditional business extensions may no longer guarantee growth, prompting a search for new revenue streams.
Trends in Small-to-Medium Chemical Manufacturers: Accelerating Overseas Expansion and Diversification
Small and medium-sized chemical manufacturers are focusing on niche product development, often in areas not covered by larger firms. As intensifying global competition force the industry to look outward, there is a growing trend of expanding these products overseas.
Since many SMEs rely heavily on a single product line, diversification efforts are underway to mitigate risks if their core sector declines. These companies are working to repurpose their technologies in other fields or develop new applications. For instance, an electronics materials company might begin developing materials for the automotive industry, or vice versa, with automotive materials firms moving into semiconductor materials development.
Trends in Small-to-Medium Chemical Trading Companies: Overseas Expansion and Value Enhancement
For chemical trading companies, expanding into overseas markets has become a top priority. With growing global competition, the challenge lies in increasing sales abroad. Moreover, the rise of direct transactions via e-commerce has led to greater scrutiny of the role of trading companies. Survival in this environment demands enhanced value propositions and stronger proposals, with firms seeking to deepen their technical knowledge to engage with manufacturers’ engineers on equal terms.
Trends in Global Chemical Manufacturers: Focusing on Electronics, Automotive Resins, and Battery Materials
Global companies’ strategies are split between maintaining the status quo and pursuing aggressive expansion. Those opting for growth are primarily focused on three areas:
1. Electronic materials (including semiconductors)
2. Automotive resins (materials for electric vehicles)
3. Battery materials
These sectors are expected to experience significant growth globally. Notably, many companies are investing heavily in the semiconductor sector, with plans to expand their production capacity.
SDG Initiatives in Chemical Manufacturers (Chemicals/Materials Industry)
SDG Initiatives in Large Chemical and Materials Manufacturers
Large chemical and materials companies are actively addressing the Sustainable Development Goals (SDGs) by establishing dedicated departments and projects focused on sustainability and carbon neutrality. These efforts have become a key factor for stakeholders in selecting business partners. For example, clients in industries such as automotive, electronics, and machinery—major users of materials from chemical manufacturers—are now incorporating sustainability into their purchasing criteria, alongside traditional considerations of quality, cost, and delivery (QCD). Companies are increasingly seeking environmentally friendly materials or those produced under ethical labor conditions.
SDG Initiatives in Chemical Trading Companies
Among chemical trading companies, there is a growing trend to strengthen their handling of environmentally friendly materials. For instance, resin and plastic trading companies are actively introducing biodegradable plastics, which break down into water and CO2 through microbial action, as well as materials made from alternatives to petroleum. These companies are expanding their product lines to include more sustainable options, with many aiming to scale these efforts into full-fledged business operations.
SDG Initiatives in Small and Medium-Sized Chemical Manufacturers
In the small-to-medium-sized segment, more companies—both manufacturers and trading firms—are beginning to establish specialised departments like “Sustainability Promotion Offices.” These departments focus on a broad range of SDG-related themes, including reducing environmental impact, cutting CO2 emissions, promoting sustainable work environments, achieving gender equality, creating jobs, and improving health and wellness.
SDG Initiatives in Global Chemical Manufacturers
Global chemical companies are also emphasising SDGs, especially in the development of products aimed at reducing environmental impact and CO2 emissions. They are strengthening their portfolios related to sustainable solutions and increasing efforts around diversity and inclusion.
Additionally, there has been a rapid increase in the number of startups founded around SDG-related business areas, particularly those connected to sustainability, carbon neutrality, and environmental responsibility. Examples include developing and manufacturing materials that do not emit CO2 (e.g., producing plastics from plant-based materials), the commercialisation of new energy solutions, and recycling efforts for plastics and metals.
Recruitment Trends in Large Chemical Manufacturers (Chemicals/Materials Industry)
Hiring Talent for “Transformation,” Including from Other Industries
In recent years, the need for talent has shifted toward those capable of leading transformation in response to societal changes. Large chemical companies are now focusing on talent who can contribute to areas like digital transformation (DX), carbon neutrality, and semiconductors. This has led to increased recruitment of individuals from other industries. The trend is expected to continue in 2024, with companies seeking professionals capable of driving business transformation and new ventures, including those from outside the chemical industry.
In-Demand Roles
Digital Transformation(DX) Specialists
Chemical manufacturers are seeking individuals with experience in factory automation and smart factory initiatives from the manufacturing sector, regardless of the specific industry. Additionally, companies are hiring system developers and data scientists from IT companies and advanced manufacturing firms with a strong focus on DX to drive business model transformation.
Business Planning Roles
While some chemical companies are engaging in M&A or divestment, there is also an increasing focus on new business development and overseas expansion, creating demand for business planning professionals. Large companies are hiring for positions aimed at strengthening their overseas operations, often through M&A and subsidiary creation. These roles increasingly require digital skills, and there are cases where business planning departments collaborate with IT teams or hire people with IT and web marketing expertise.
R&D Roles
Research and development remain a key area of recruitment, especially for new product development roles. The growing demand for semiconductors is driving hiring for both organic and inorganic materials R&D positions. Additionally, companies are venturing into life sciences, including pharmaceuticals, cosmetics, and food, areas less impacted by economic cycles. There is also an increasing focus on drug development, and research professionals from academia are being recruited for such roles.
Recruitment Trends in Small and Medium-Sized Chemical Companies
In small and medium-sized chemical manufacturers and trading companies, recruitment is focused on roles related to overseas expansion and new project development. Additionally, these companies are facing challenges related to leadership succession due to aging management, making the recruitment of next-generation management talent a pressing issue.
In-Demand Roles
Overseas Sales
There is active recruitment of overseas sales professionals, from junior to managerial levels, with requirements often including at least three years of overseas sales experience. Southeast Asia, especially Thailand, Vietnam, and Singapore, is a major target market, with growing demand for professionals with experience in China as well.
Production Technology Managers and Plant Managers
There is strong demand for production technology managers and plant managers. Candidates with experience in managing entire plants and a deep understanding of equipment are sought after, even if they come from industries like automotive or electronics.
Product Development for New Ventures
Companies are also hiring product development professionals for new ventures, particularly in fields like environmental sustainability and semiconductors. There is a strong demand for engineers with relevant expertise in these areas.
Factory Automation Specialists
Small companies lagging in automation are looking for individuals who can take the lead in planning and promoting factory automation initiatives, regardless of their previous industry experience.
Technical Sales
There is a rising trend in technical sales recruitment. While companies prefer candidates with previous technical sales experience, they are also open to hiring individuals with a science background and strong communication skills. Many former R&D professionals transition to technical sales roles to work more closely with clients.
Hiring Trends in Global Chemical Manufacturers (Chemical/Materials Industry)
In-Demand Positions
Sales
Sales roles account for 40-50% of the openings in global companies. Many of these positions are for account managers, who manage client relationships without directly supervising a team.
The demand for sales professionals in the key areas of electronic materials, automotive resins, and battery materials is increasing. Some companies are even hiring candidates from industries they target for their products. For example, someone with experience in electric vehicle development at an automotive manufacturer may be hired as a technical support specialist for EV-related materials at a global chemical firm. These roles are attractive to candidates who prefer a broader range of responsibilities compared to narrowly defined roles in larger organisations.
Plant Managers, Manufacturing Department Managers, Production Engineers, EHS Roles
In line with the focus on electronic materials, automotive resins, and battery materials, many companies are expanding their production facilities to meet global demand. As a result, there is high demand for plant managers, manufacturing department heads, production engineers, and Environmental Health and Safety (EHS) professionals. Younger candidates with experience in organic chemical materials are also being hired with the expectation that they will quickly catch up after joining.
Hiring Trends Related to SDGs in Chemical Manufacturers
As chemical companies strengthen their efforts towards achieving the Sustainable Development Goals (SDGs), hiring in related fields is also picking up. Companies are looking for talent at both the member and managerial levels, with the number of job openings gradually increasing. Given the lack of experienced professionals in this area, companies are willing to hire candidates without direct experience in sustainability, SDGs, or carbon neutrality, as long as they possess relevant functional experience and demonstrate interest and motivation.
In-Demand Positions
Sustainability and Carbon Neutrality Planning Roles
Companies are actively recruiting for planning positions in departments dedicated to promoting SDGs initiatives. Depending on the specific role, desired qualifications may vary. Candidates with experience in corporate planning, business planning, public relations, or investor relations, as well as those with experience in selecting business partners, managing alliances, and project management, are in demand. While direct experience in sustainability or carbon neutrality planning is a plus, companies are also considering candidates with experience leading innovative projects in other fields. Notably, business development positions are open to candidates from a wide range of industries, including those with experience in consulting firms.
R&D Roles for Environmentally Friendly Products
With the acceleration of carbon neutrality initiatives, there is increasing demand for R&D professionals focused on developing environmentally friendly products. Areas of interest include biodegradable plastics, bioplastics, and recyclable materials. While experience in these fields is a plus, companies are also hiring researchers with a strong desire to work on new product development or basic research related to environmental issues such as CO2 recovery. The shortage of talent in this area has led to the recruitment of professionals from other industries, as well as academics with specialised expertise.
Production Engineers for Sustainable Manufacturing (Production Technology, Process Engineering, Plant Engineering)
There is also strong demand for engineers to implement and manage production methods and equipment that reduce CO2 emissions during the manufacturing process. Companies are hiring professionals with experience in production technology, process engineering, and plant engineering, particularly from engineering firms. Startups focused on reducing environmental impact are not necessarily seeking candidates with direct experience in CO2 reduction but are open to those with relevant technical expertise. For example, a company focused on eliminating plastic waste may hire candidates with experience in the plastics industry.
EHS Roles
EHS (Environment, Health, Safety) activities are gaining importance globally, as sustainability and SDGs become key corporate initiatives. Companies are seeking candidates at various stages of experience, from younger professionals with limited experience to seasoned professionals in their 40s and early 50s with management experience. The chemical industry is in a period of transformation, actively entering new business areas and overhauling their EHS organisations. Even candidates without direct EHS experience, but who have engaged in EHS-related tasks as part of their previous roles, are being considered for these positions.
Chemical Substance Management
With increasing awareness of green procurement (environmentally conscious sourcing) among end-product manufacturers, there is a growing need for professionals to manage chemical substances.
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