David Sedge
Partner, Head of Chemicals
Insight
Sustainable Cost Out in Chemicals: Rethinking How Work is Done
A Growing Imperative for Chemical Executives
Chemical companies are facing increasing pressure to deliver cost improvements that are both credible and sustainable. In a context marked by volatility, ranging from energy and feedstock prices to regulatory and labor constraints; cost performance has become a strategic priority.
Yet many organizations still rely on traditional cost-cutting approaches. While these can generate immediate savings, they often fail to address the underlying drivers of cost, leading to recurring cycles of reduction initiatives and, ultimately, cost rebound.
A Need For a Different Approach
Sustainable Cost Out requires more than temporary actions. It calls for a fundamental shift—from reducing cost in the short term to transforming how work is performed across the organization.
By focusing on process redesign, organizational effectiveness, and performance management, companies can structurally remove inefficiencies while strengthening operational performance.
In the latest issue of Chemical Week, EFESO experts share their perspective on why traditional cost programs fall short and how leading chemical companies are adopting a more structural approach to cost transformation, sharing real-world examples of organizations achieving significant and lasting results.
What you will Discover
- Why traditional, short‑term cost‑cutting programs fail to deliver sustainable results in the chemicals industry
- The structural cost challenges chemical companies face amid volatility, inflation, and complexity
- How sustainable cost‑out requires rethinking how work is designed, governed, and executed
- The shift from one‑off savings initiatives to embedded, day‑to‑day cost discipline
- Real‑world examples showing how leading chemical players protect savings over time
- How cost transformation can become a lasting source of competitiveness, not a reactive measure
Download the full article to learn how to build a cost structure that is both efficient and resilient
Download the Article
Download the full article to learn how to build a cost structure that is both efficient and resilient
The Authors
Fernando Cruzado
Partner, Head of Chemicals
Michael Matlock
Senior Advisor
Charles Deise
Senior Partner
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