6 Ways Natural Rubber Buyers in USA can be Successful with Digital Transformation
Rubber holds a great share in the global economy with its major applications in several industries such as manufacturing, automotive and consumer goods as well as medical industries. As producers work with the on-going demand and supply situation and end buyers attempt to alleviate price volatility, market players are looking for opportunities to protect their margins through enhanced trading and management techniques.
Current status of rubber industry
The natural Rubber buyers in USA have witnessed momentous price volatility over the past decades. The degrees in fluctuation reflects the difficulties in achieving the stability in market balance from the past decades, particularly due to potential time lag in between the lapse of planting and harvesting of the rubber trees, which typically appear in different market demand environments.
Today’s market situation has created a matchless pressure on the largest rubber manufacturers in the world to protect their margins, while forcing the rubber products importers in USA and India to anticipated the price momentums market instabilities.
The uncertainty of 2020 has brought a great turbulence to the largest rubber manufacturers in the world and yet the natural rubber has also been effected. With the start of 2020 the ANPRC has been forecasting the increase in manufacturing and demand well by the end of the year the production seems to decline. The main reason to the nose dive in the demand is from the car production sector, irrespective of the glove manufacturing and PPE manufacturers cultivated an inclined upwards graph in the production. The PPE producers are well acknowledged to deliver on the current market needs, though the increase have not enough to cope up with the overall decline.
Global factors effecting the rubber industry are;
· Global trade policy
· Crude oil prices
· Automobile sector
· Medical and Industrial products
· Foreign exchange movements
· Business practices
· Trade conflicts among US and China
· Technology benefits for the rubber industry
The role of digitalization in the rubber manufacturing industry
Digitalization is the fundamental factor to remove the concerns of the fraudulent presentation based on the paper work and to speed up the process. moreover, secure, cloud based means can offer anytime, anywhere access for every organization irrespective of their size, making use of the modern technology to facilitate quick pricing, trade execution and real time connection of businesses as well as seamless post trading process.
The investment in regards to the technology by small enterprises have been a primary barrier to find a place in the rubber industry. Although with more independent, and collaborative digital marketing platforms are available today, this is not the case. These small and medium sized enterprises can now participate with least cost investment and to raise their profile taking advantage of the smart logistic and after sales services such as automated contracts, managing finances and using marketing channels to reach international markets.
The digitalization is driven by the modern technologies. With the breakthrough of AI and cloud computing, though consequently cloud computing enjoys being the most important digital technology that is being used by the big data analytics. The future growth of the rubber sector is determined by the internet of things, 3D printing, and augmented reality and even by block chain even at the very initial level. The percentage of businesses using the AI technology has by contrast only increased from 6 to 7 percent.
The Good News is that the rate of digitalization in Europe has increased to potential levels. About two thirds of the companies that provide goods and services primarily through physical channels that we can also call the non-online businesses as started with digital transformation.
What are the six factors that will determine the success of a digital transformation?
· The leadership
· The people
· The dexterity
· Business integration
· Value of data
· Ecosystem
These are the skills that are viewed as the backbone of the manufacturing concern. Companies with successful digital projects display greater capacities and trade performance in the six fields than the companies with modest and to date no success.
So the difference is particularly the expansion in agility and human assets, that’s the arenas in which traditional companies are particularly weak. They work on setting up platforms and ecosystems and may face difficulties in making their organizations agile.
Top 10 Largest Rubber producers and manufacturers
Germany
Japan
France
USA
Italy
South Korea
China
Cote d Ivory
Thailand
Indonesia
The future trend for Rubber market
One of the significant rubber market trends is the rapid growing of the market share for synthetic rubber products. Many procurement sectors such as automotive parts, tires, footwear, medical, construction, and packaging are shifting their preferences from the natural to processed rubber purchase! Why because in comparison the natural rubber, the synthetic rubber offers more toughness, high resistance and elasticity. And hence this leads to rapid preference shift for synthetic rubber buyers , reclaimed rubber importers in USA, rubber clamp buyers and it’s expected that these trends will continue to grow in the near future.
