Contran Competition
Now Viewing Contran's competition in: Chemicals (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How many customers does the company sell to? - Some companies have just a few large customers.
Does the company sell a large amount of product to a single customer? - This is frequently the case, especially with specialty products.
How many companies are direct competitors? - Many industry segments have only a handful of large competitors.
Are substitute products available that compete with the company's products? - Frequently, customers can achieve the same effects with alternative chemicals.
Who is the industry price leader? -
Does the company hold any long-term sales contracts? - Long-term contracts often specify minimum sales levels.
Has the company been able to pass any cost increases to customers? -
How does the company find new customers? - Sales representatives and trade shows are important marketing tools.
Competitive Landscape
Demand is driven by the health of the US economy because chemicals are used to make a wide variety of industrial and consumer products. The profitability of individual companies is closely tied to efficient operations. Big companies have large economies of scale in production. Small companies can compete effectively by producing specialty products, of which there are a large number, or by operating a single plant highly efficiently. The industry is capital-intensive: average annual revenue per employee is more than $500,000.
Business Challenges
CRITICAL ISSUES
Sensitivity to Energy Prices - Because of the high energy content of many chemicals, higher energy prices can greatly affect production costs. For many products, energy accounts for 30 percent or more of total costs. Many manufacturers use natural gas as a source of heat, or natural gas or petroleum as feedstock. In recent years, energy costs have been volatile.
Health, Environmental Regulations - Despite large investments to prevent air, water, and ground pollution, chemical companies have ongoing exposure to environmental and health issues, because regulations continue to tighten and past practices continue to result in large cleanup costs or litigation. Many chemical companies have been cited for liability at Superfund sites or for illnesses caused by their chemicals.
Industries Where Contran Competes
- Chemicals
- Basic and Intermediate Chemical & Petrochemical Manufacturing(primary)
- Environmental Services & Equipment
- Industrial Manufacturing
- Metal Fabrication
- Metals & Mining
