EMPLOYMENT
A problem born of success Chemical executives are growing concerned about staffing across their expanding companies
companies. According to Accenture, 52% of chemical companies report that competitors are one of their greatest sources of professional talent. MICHAEL MCCOY, C&EN NEW YORK CITY Firms that want to broaden their hiring pool to replace baby boomer retirees will efying dire predictions, chemical companies are advancing need look to the millennial generation of people aged 16–34. But Accenture’s survey a slew of expansion projects on the U.S. Gulf Coast without raises questions about how prepared chemical companies are to cater to that genermajor shortages in skilled labor. Plants are being built on ation, which by and large doesn’t see the time, and thanks to low-cost raw materials extracted from chemical industry as a “cool” place to work. shale, executives are anticipating robust sales when they start up. Indeed, only about one-quarter of North But those same executives are being lab workers that their expanding businessAmerican chemical companies retained warned not to get complacent about findes will require. “We’re still worried about 90% or more of their millennial employees ing the workers their firms need to prosper. the future,” he said. hired in the past three years, the Accenture Baby boomer employees are retiring, and Cella, who is also the incoming chairman survey finds. Most saw a 30–50% attrition replacing them with today’s millennials of ACC’s board, led his firm’s participation rate among millennials. In contrast, a sepwon’t be easy. in a new survey of chemical industry workarate Accenture study shows that 69% of Growth in the U.S. chemical industry force issues conducted by ACC and the new university graduates expect to stay in and replenishment of its aging workforce consulting firm Accenture. their first job for more than three years. were intertwined themes at the American The survey attracted more than 500 reAt a roundtable convened by Accenture, Chemistry Council’s annual meeting, held spondents, including 100 top company exexecutives talked about the challenges of earlier this month in Colattracting the millennial orado Springs. generation to their comACC economists calSurvey respondents see stafng challenges for the chemical workforce. panies. Jerry MacCleary, culate that more than 260 North American president The chemical industry needs to do more to change its image to attract workers. U.S.-based expansion of the German polymers 12 1 47 40% projects valued at some maker Covestro, said fully My company needs to find better ways to assimilate millennials. $160 billion are being 50% of the workers at his built to take advantage of firm are from the baby 18 49 3 30% shale gas. Executives from Profitability in the chemical industry will suffer if workforce challenges are not resolved. boomer generation. The leading chemical commillennials who will re37% 11 3 49 panies told reporters at a place them have different ◾ Strongly agree ◾ Agree ◾ Neither agree nor disagree ◾ Disagree or strongly disagree press briefing that their values. projects are on time, if not Source: Accenture survey of more than 500 chemical company managers “Millennials want to always on budget. make a difference,” MacFor example, Mark Rohr, chief executive ecutives, mostly from the U.S. and Canada. Cleary said, “not just in their jobs but in the officer of Celanese, said his company reAmong the findings, 40% of respondents communities where they live.” cently built a methanol plant in Clear Lake, said at least 20% of their companies’ workCovestro’s response is a corporate social Texas, in record time, although slightly force will be eligible for retirement in the responsibility program called i3, for ignite, over budget. Chevron Phillips Chemical next three to five years. imagine, innovate. Among other things, the CEO Peter Cella said his firm’s $6 billion Susan Christensen, who heads Accenprogram encourages skills-based volunteerethylene cracker in Baytown, Texas, should ture’s talent and organization practice, ism, in which employees apply their experopen next year on time and on budget. explained that the impending bubble in retise to solving challenges facing nonprofits. In contrast, Sasol recently disclosed that tirements is in large part due to the chemiInga Carus, chairman of the specialty its massive petrochemicals project in Lake cal industry’s lackluster hiring of new work- chemical maker Carus Corp., urged ACC Charles, La., will cost $11 billion, $2 billion ers in recent years. The result is an outsized to support the creation of a nationally acmore than previously expected. pool of older baby boomer employees at credited chemical operator program. She Both Rohr and Cella said one pinch point many firms. noted that a rival trade group, the Society has been finding welders. According to CelACC’s midyear economic report, released of Chemical Manufacturers & Affiliates, is la, Chevron Phillips got relief by importing at the meeting, backed up Christensen’s already behind the plan. temporary workers from the Philippines. contention. The report notes that employCarus said her firm’s own response to Yet Cella acknowledged that chemical ment in the U.S. chemical industry declined the workforce challenge includes starting companies got lucky because their growcontinuously from 1999 to 2011. But it has an apprenticeship program modeled after ing need for craftspeople coincided with a started to rebound, and ACC expects emsystems popular in Europe. downturn in construction in the oil and gas ployment growth every year through 2021. “It’s a difficult time for the industry,” and mining industries. Harder to find may At the moment, chemical companies Carus said. “We must make it more attracbe the chemistry-knowledgeable office and tend to poach workers from other chemical tive to millennials.” ◾
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Work in progress
JUNE 20, 2016 | CEN.ACS.ORG | C&EN
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