Margin Improvement: Margins in the industry kept beneath pressure, even previous to the economic downturn for the industry as entire, returns on capital have continued beneath the cost of capital. Previous to the falls in the second half of 2008, the increase in input costs (that is, raw materials, energy, & chemicals) and other operating costs had been unalterable and the incapability of the industry to recover such costs via sales price raises reflects disaggregated decision-making in the industry, ongoing industry overcapacity and end user resistance to price raise.
Accordingly, the industry should continue to focus on dropping costs, in particular the “cost to serve” customers, altogether with the capacity management.
The industry that has traditionally focused on volume and capacity utilization should too focus more on margin, and in turn this needs more innovation, in procedure, in an attempt to drive the margin improvements.