ls industry ready to break the cycle?

Executives say firms rnust focus more on employee retention

TFG CI{l\4ICAIJ BUSINESS AI\XAYS FLAS BEEN CYCUC{I

and, with the cycles, came periods of fuing and hiring. Norv, as chenricai engineers find opportunities in lvider areas (see C?, October, p. 18), that dynamic thankfully may
he "- chanqins -"*..b_^_b'

Companies are
responding to two key

For instance, at rrid-fanuary's

teleconference of

Chemical Processing's Editorial Board, one member noted that he's heard that lots of companies are now trying to lure back engineers that once had ra'orked for them. That certainly makes sense because alumni already know the culture and have track records. Some firms are even lobbying engineering stddents to switch majors to chenrical engineering, added another board mernber. Rest assured these comments didn't come from people prone to PolJyanna-ish pronouncemenrs, Of course, such inputs c<.ruld just reflect that vurc're on the upsu'ing in the cycle. Key chemical industry economic data e.8., shiprnents and capacity util.ization are trending in a favorable direction. Horvever, a survey comrnissioned by Deloirte Con-

coach and maintain talented people. Therefore, retention

is becoming even more imperative, both to recoup the substantial investment in training and to majntain po'*'er for sustained growth. Middle managers are now an increasingly cared for group. . . " Marriott in particular cites the American Chemistry Council's can-rpaign to improve the image of the industry and t<; affract people to the fieid, and the National Association of Manufacturers' Center for.WorkJorce Success. He notes that retention efforts are extending all the way down through dre organizations his finn has *'orked with. He credits frvo factors: companies ernphasizing ne.,v product developrnent as a key growth strategy realize horv important R&D staff are for success; firms aren't just rec-

snlting provides anorher perspective and certainly not a Pollyanna-ish one as fal as the- indusrry's challenges.

The recerttll' released report is based ou interviews with 37 lrighJevel people at 26 U.S. chemical compar-ries. Almosr one-third of the respondents called eneri,v costs rheir companies' top concern. A-lmost as man)r, 30%, circd gror.r.th and profitabiJiry as the main challenge, while nearJ,v 20o/. put globalization fust. Traditionally, such pressures rvould presage staf6ng cuts. Hoq'eveq Tom lv{arriott, a partner at Deloitte, and its U.S. process manufacturing industry practice leader, describes a different dynarnic. "One of the lastest grorving and most competitive global issues is furding and keeping top talent. It js also one colrmanding a great deal of attenfion from chemical company CEOs and other high level exccutives. In {act, newiy emerging industry grorlps are forming conrrnittees rvhose sole purpose is to address horv to recruit,
CI

ognizing but starting ro address the impact clf "boorner" retirernents by paying more attention to developing and pr:ornoting vounger staff. Let's hope rve are seeing a real change. With the challenges facing the U.S. chemical industrl', companies need to appreciate and retain their engineering expertise. 8P

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Marh Rosenzurcig Editor in Chief
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Reprinted rvith permission liom Chenrical Processing, lv{alch 2007. PUTMAN. All Rights Reselved. On the Web at lvww.chemic:aiplocessing.com.

Deloitte=
Tom Marriott, U.S. Chemical Leader Deloitte Consulting LLP +1 (908) 673-5340
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