Industrial production up 3% the first half of 2025
The Breakdown
The first half of 2025 witnessed a 3% rise in the Industrial Production Index, highlighting overall growth across a diverse set of manufacturing and extraction activities. Standout sectors included electronics, optical products, electric equipment, and non-metallic minerals—all showing robust double-digit expansion. Sectors such as mining, water supply, and wood products also gained momentum. However, contractions emerged in paper and printing, textiles and apparel, chemicals, refined petroleum, and notably, pharmaceuticals. The electricity supply and capital goods manufacturing also registered modest declines. The mixed dynamics reinforce a landscape where growth is structurally uneven, and sectoral volatility is pronounced.
Analyst View
For B2B leaders in specialty chemicals and polymers, these industry signals are pivotal. The clear outperformance of electronic and optical manufacturing, as well as the robust demand for non-metallic minerals and water treatment, signals market needs that are firmly rooted in infrastructure modernization and digitalization. Companies serving these segments can anticipate elevated demand for enabling materials, components, and process innovations.
However, declines in chemicals—including specialty and pharma—underscore persistent headwinds. Factors including changing consumer patterns, cost volatility, and shifting global supply chains are pressuring established value propositions. The contraction in refined petroleum and power underscores the overarching energy transition and intensifies scrutiny on operational resilience. Companies relying on traditional demand cycles or long-standing partnerships may face stagnant or negative growth unless they diversify their customer or channel portfolio.
With competitive alternatives expanding most aggressively in segments adjacent to manufacturing and energy transition, market receptivity will become more selective and innovation-driven. Channel partners may need to be engaged proactively to ensure alignment with these dynamic sector priorities, requiring more nuanced value messages and agile supply chain practices. Regulatory currents—particularly those affecting sustainability and operational emissions—will increasingly define both risks and opportunities for repositioning.
Navigating the Signals
Demand visibility is fragmenting. As high-value sectors like electronics, infrastructure, and selected materials gain share, leaders must scrutinize not just end market demand but also the functional strength of their channels and ecosystem partners. Periods of rapid change often lead to miscalculations around inventory, pricing, and solution readiness—especially in markets subject to regulatory flux or supply chain shocks.
Internally, leadership teams will need to ask: Are we positioned to win in the fastest-growing, most resilient verticals—or are we exposed to areas where contraction is now structural? Do our customer engagement strategies reflect present-day market expectations for speed, sustainability, and digital enablement? How might shifts in input costs, regulatory standards, or end-user preferences undermine current positioning? Now is the time to reassess go-to-market models and ensure innovation portfolios are sharply aligned to real, evolving market need.
What’s Next?
Breakthrough Marketing Technology is uniquely positioned to help B2B chemical and polymer businesses de-risk their next moves. In markets characterized by shifting demand, channel turbulence, and operational uncertainty, we provide the clarity required to focus leadership attention where it matters most.
- Quantitative market mapping—so you see where demand is most durable and where it is retreating.
- Voice-of-the-customer insights—unlocking deeper understanding of how and why buyer priorities are shifting.
- Channel and partner assessment frameworks—revealing strengths and gaps in market access strategies.
- Regulatory and market trend monitoring—helping anticipate and proactively respond to compliance and sustainability pressures.
- Strategic alignment workshops—ensuring your portfolio, investments, and messaging mirror future market needs.
As the production and demand environment evolves, our approach keeps you ahead—transforming risk into actionable growth opportunities.
Source
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