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A Safe Harbor

November 30, -0001

The past 18 months have been a rollercoaster ride for household and personal care formulators. Raw material prices began to surge to record levels more than a year ago, and just as quickly bottomed out as the recession began to impact even normally stable categories such as laundry detergent and shampoo. But highs and lows in the market are nothing new to P&G Chemicals which, throughout its history, has survived and thrived through more than a few recessions and boom times.

“The rise in the cost of raw materials was unprecedented, and the fall in demand and feedstock was of a similar nature,” recalled Mr. Nelson.

But as supply and prices rose and fell, P&G Chemicals had the infrastructure and partnerships in place to weather the storm. That kind of experience is comforting to P&G Chemicals’ customers. As Mr. Nelson noted, when the chips are down and customers must turn to suppliers that have long track records of consistent supply, inevitably they come to P&G Chemicals.

“Many players in this industry have increased risk management and as they look to manage the level of risk, they want to do business with reliable, economically-viable suppliers,” concluded Mr. Nelson. “That gives us a good opportunity to increase market share in the current uncertainty.”
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