Navigating Your Next Career Move: Focus on Chemical and Process Manufacturing Sector

As part of our ongoing industry analysis series, we turn our attention to the Chemical and Process Industry. Sahar Akhtar, Head of Industrial Sector EMEA at Pacific International Executive Search, offers a comprehensive outlook on the sector’s performance, current challenges, and anticipated trends for 2025. Drawing from extensive experience in executive recruitment, Sahar also provides valuable guidance for senior-level professionals navigating career opportunities in this dynamic sector.

Sector Performance in 2024: Chemical Manufacturing – A Year of Resilience and Growth

2024 has been a year of resilience for the chemical manufacturing sector, particularly in Europe. After navigating through global uncertainties, the industry grew 3.5%, with European specialty chemicals standing out with a 5.2% increase. A strong push toward sustainable innovation fuelled this growth as more companies shifted focus to greener, more eco-friendly practices. But it wasn’t all smooth sailing. Supply chain challenges and volatile raw material costs still posed hurdles, driving up manufacturing costs by an average of 8.6% (European Chemical Industry, Council World Economic Forum).

Key Challenges and Predictions for 2025

The chemicals sector has set ambitious climate goals, with numerous manufacturers pledging to achieve net-zero emissions by mid-century. Companies are implementing multiple approaches to cut their carbon footprint, including transitioning to clean energy, enhancing energy efficiency, and deploying carbon capture systems. Despite these efforts, the International Energy Agency (IEA) data indicates the industry is falling short of the trajectory needed to meet its 2050 targets.

Despite this, there’s no slowing down for the sector, but a few key challenges remain:

1. Regulatory and Sustainability Pressures: Sustainability isn’t just a buzzword anymore—it’s becoming essential. Companies are grappling with stricter environmental regulations in Europe, which will only intensify. By 2025, more than 50% of chemical companies are expected to prioritize sustainability in their hiring, meaning executives with a strong ESG background will be in high demand. (McKinsey & Company)
2. Talent Shortages & Global Skills Gap: Despite a strong performance, 40% of companies struggle to find the right talent, especially in R&D and digital transformation. As the demand for senior talent in these areas rises, expect this gap to widen by 7-10% in 2025. (Chemical Watch Global Talent Report, Bain & Company)
3. Supply Chain Resilience & Geopolitical Risks: Geopolitical tensions shake up global operations. Supply chain disruptions in the chemical industry led to a 3% decline in production capacity in 2024, and this recovery will take time. Companies actively seek leaders who can help manage risk and ensure business continuity—skills that will be more in demand in 2025. (World Economic Forum)

What Roles and Skills Are in Demand?

The types of roles chemical companies are hiring for remain reasonably consistent, but the focus is shifting toward leadership with specialized skills:

1. Operations & Supply Chain Leadership: Companies are doubling down on operations and supply chain management, with over 50% planning to hire in these areas next year. The focus is reducing costs, managing risks, and making operations more agile. (The Global Chemical Employment Trends Report)
2. Innovation & R&D: Chemical companies are investing heavily in R&D—global spending hit $100 billion in 2024. Leaders who can drive innovation in sustainable products and technologies are in high demand. (Statista)
3. ESG Expertise: As ESG becomes more critical, 70% of chemical companies are actively hiring executives with a proven track record in sustainability. Expect this trend to grow, with ESG-related roles projected to increase by 15-20% next year. (PwC, KPMG)
4. Digital Leadership: The push for digitalization and smart manufacturing creates demand for leaders skilled in AI, automation, and data analytics. The digital manufacturing market is growing by 12% annually, which will continue to shape hiring trends. (MarketsandMarkets)

Where Else Are Chemical Companies Looking for Talent?

The search for top talent doesn’t stop within the chemical industry. Companies are casting a wider net and increasingly hiring from adjacent industries like energy, pharmaceuticals, and technology. About 35% of chemical companies are actively hiring from these fields to meet their needs for innovation and regulatory expertise. (Bain & Company)

Diversity in Leadership: Not Just a Buzzword

Diversity is still a top concern for many organizations. According to CEFIC, 45% of chemical companies are working to increase diversity at the leadership level. Regulatory pressure and the real business benefits of diverse teams, such as improved innovation and decision-making, drive this focus. By 2025, 60% of chemical companies will have diversity as a key focus in their leadership hiring process. (McKinsey & Company)

3 Tips for Candidates Looking to Secure a Role in Chemical Manufacturing:

1. Upskill in Sustainability & Digital: The industry’s future is all about sustainability and digital transformation. Candidates with expertise in both areas are likelier to secure senior roles. Companies are actively looking for leaders who can drive these changes forward. (Deloitte Insights)
2. Show Your Leadership in Complex Environments: The chemical sector values leaders who can navigate complex, regulated industries. You’re in high demand if you have experience leading in such environments, especially with large-scale operations or multinational teams. (World Economic Forum)
3. Be Agile and Ready for Change: Adapting to new technologies, regulations, and market shifts is key. Companies seek leaders who can think on their feet and lead through uncertainty. If you’ve shown adaptability in the face of change, you’ll have an edge over the competition. (Chemical Industries Association)

If you are a senior leader in the Chemical and Process Manufacturing Sector, connect with Sahar Akhtar to schedule a chat about navigating your next career move or to discuss Talent Acquisition challenges.