A major demographic shift is underway in the Western population. 253 million babies were born in the 1946-70 period in the G7 wealthiest countries (USA, Japan, Germany, France, UK, Italy, Canada). They have driven consumer spending over the past 15 years, as the majority of them moved into the 25 – 54 age group. This […]
Chemicals and the Economy
Buy a US home – get a $17k car free
The New Normal has definitely arrived in the US housing market. US new home sales are down 80% from their peak, and builders are getting desperate. Offers in the Chicago area now include a $17k credit for a GM car, when a buyer closes the deal. As the New York Times comments, “a long-term shift […]
New Normal seminar and e-book to be launched
The blog has an incredibly loyal following around the world. 24% of its readers visit twice a week, or more. They also recommend it to colleagues. Visitor numbers jumped 50% last month.The issue is the rising uncertainty over the outlook for the world economy. This has clear potential to cause problems for the chemical industry.The […]
US households cut debt to 6 year low
The US economy is worth $15trn, 24% of the global economy. Domestic consumption, accounts for 70% of the US total. This means the US consumer represents 17% of the global economy. China’s economy, although the 2nd largest in the world, is just $5.7trn. And its domestic consumption is much smaller, representing only 3% of the […]
P&G’s ‘New Normal’ offer leads to record US sales week
Procter & Gamble (P&G) is the world’s largest consumer products company, with sales of $80bn. Its Pur water purification product highlights how Prof Michael Porter’s ‘Shared Value’ concept, highlighted in the blog in January, has the potential to unleash the next wave of global growth. Pur helps to reduce deaths from diarrhoea in developing countries. […]
New Normal seminar successful in Singapore
The blog has had an exciting time in Singapore this week. 21 delegates had registered for the first-ever New Normal seminar, and we had a fantastic range of expertise in the room. Attendees came from China, India and Saudi Arabia, as well as from South East Asia. And they represented a wide range of industries, […]
UK house prices slip in H2
UK housing markets followed the US lead in recent decades. Conservative and Labour governments both shared a belief in extending property ownership as widely as possible. But what neither foresaw was the ‘unintended consequence’. Their policy of boosting home ownership coincided with the entry of the BabyBoom generation (those born between 1946-70) into the 25 […]
US heads towards New Normal for housing markets
Major changes are underway in Western housing markets. They are generational in nature, meaning that we are starting to see a New Normal develop in terms of future demand patterns for chemicals and polymers. The past 30 years have seen Western leaders committed to the concept of a ‘property-owning democracy’. Both US President Reagan and […]
New Normal workshop in Singapore on 24 February
The blog is excited to learn that there should be a good attendance for its first New Normal training Workshop in Singapore. This is being held in association with ICIS, on 24 February. The Workshop aims to provide a comprehensive understanding of the factors that will impact the petrochemical market over the next few years: […]
US, European, auto buyers focus on price
US auto sales disappointed again last month. As the chart shows, January (red square) came in well below the 1.1m level that was normal during the Boom years. And even this 819k sales level required major increases in incentives. GM, of course, was focused on stabilising its stock price after the IPO, so it needed […]
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