The Chemical industry is seeing a resurgence due to the less expensive energy cost and needs for a growing worldwide population. Fine chemicals, derivatives and other chemical related products that feed the worlds manufacturing industry are all seeing growth as the economy rebounds for the world economic crises of 2009 – 2010. This activity is even more prevalent in the growing regions of the world due to the population growth but also in North America due to the less expensive and abundant gas supply. These issues are changing the Chemical industry outlook for the positive.
Capital Project Impact:
Based on this changing environment, capital project portfolios are expanding. Large scale, green field projects are again being planned and executed. Brown field expansion activity is ever increasing and plant maintenance work is ramping up as well. These are all positive signs for the Chemical industry. This growth does not come without it challenges. The Chemical industry growth along with growth in other industries has put a strain on our engineering and construction resources. This coupled with longer delivery times and higher cost for equipment and materials, provides a number of execution vulnerabilities that need to be addressed in all facets of capital projects as well as maintenance activity.
Air Products and Chemicals, Inc.
These project execution trends have been seen a number of times over Pathfinder’s long history. Projects are more difficult to plan and execute in this high paced project environment but not impossible. As projects get larger and/or more complex, they demand a greater level of planning and scrutiny. Small project portfolios also suffer in this environment due to limited resources availability. Detailed planning in coordination with highly experienced leadership supported by value added assurance reviews can result in excellent project/portfolio management. Pathfinder’s extensive cadre of highly experience advisors as well as project team resources can provide direct project support and/or companywide guidance and mentorship to navigate these challenging but exciting times.
American Institue of Chemical Engineers (AIChE)
Association for the Advancement of Cost Engineering (AACEI)
Construction Industry Institute (CII)
Construction Owners Association of Alberta (COAA)
Construction Users Roundtable (CURT)
Engineering and Construction Contracting Association (ECC)