Do you have the Skills to be a Chemicals Trader?

20 March 2015

Whilst it is easy to define a chemicals trader as simply a salesman, the role is in fact a blend of scientist, entrepreneur and merchant. This combination requires a wide range of skills and a good understanding of economics, business, people, and of course, chemistry.

It makes the role well paid, when compared to other sales positions, but in an increasingly crowded marketplace, also makes for a stressful, target centred occupation, where you are only as good as your last deal.

So what qualities does a successful chemicals trader need?

  1. Combining Chemistry and Business

According to the American Chemical Society, two-thirds of marketers in the chemical industry have a technical degree. Fifteen years ago this was not the case, but the situation has now changed due to the increasingly technical nature of the industry.

Ken Christy is general manager for specialities at Olin Chemical, and is typical of many chemical traders in being educated in both chemistry and business.

“I was nine months away from getting my Ph.D. when I decided I didn’t want to work in a lab,” says Ken. Instead of completing his doctorate, Christy changed subjects to business administration (M.B.A.) and now has a successful career in sales and marketing.

  1. Understanding People

Dante Rutstrom is business manager for cosmetics and personal care at Eastman. He understands fully the importance of understanding customer needs. He was drawn into sales when realizing how well-suited he was at the more social side of marketing. Originally he was using his Ph.D in electroanalytical chemistry for research in the lab, but felt increasingly that he was detached from the real world. “There’s a likelihood I’ll go back to research, “he says, “and if I do, I’ll have a better understanding of customer needs.”

Zivile Jech, division vice president at Nalco Chemical, also worked in research before switching to sales. “It wasn’t that I didn’t like what I was doing. But I knew that in order to advance in my career, I needed more exposure to customers,” she says. “Having a background in chemistry gives me a real feel for what people do on both sides of the industry.” She currently works with both Nalco’s customers at petroleum companies, as well as with commodity chemical manufacturers who supply raw materials for Nalco’s products.

Her success is based on her understanding of both chemicals and people.

  1. Adaptability

In the past, it was possible for companies to create products and then go out and find markets. Today’s industry is much more competitive and customer centric. This means that today’s products, sales and research is led more by customer need and that entails understanding markets. Even the best chemists can use an understanding of economics, as Rutstrom points out, “As chemists, we tend to overspecialize. That’s why it’s helpful to take business courses whenever you can.”

Like all businesses, the chemicals industry is increasingly global, so understanding more than one language will always be a benefit. Whilst French and German are useful in Europe, Chinese, Japanese or Russian are more useful than ever before as new markets develop worldwide.

  1. Independence

In sales, individuals are given a product line and a territory. They spend most of their time travelling in their territory and going to sales conventions and trade shows. People with outgoing and social personalities are well suited to sales positions, but they must also be able to work independently.

Typically, a new employee in sales and marketing starts out in customer service or market research. Here, he or she will get exposure to how products are used and what the customers’ needs are. The progression up the career ladder is different at every company, but many sales and marketing representatives go through a series of jobs, including business evaluation, market development, sales, market management, and business management.

  1. The Ability to See Trends

 Sales and marketing managers often link technical staff at a company with its customers, whilst at the same time trying to track trends in prices and predict the long-term needs of the market.

Alternatively, they can also work on specific product issues, liaising with clients on the functioning of set products and their development.

  1. Self Motivation

Increasingly, chemical traders are being asked to work towards personal sales targets, often from their own homes, as companies reduce costs. There can also be a lot of travelling, either to visit customers or to trade shows and conventions. Whilst these events can give an individual the chance to prove him or herself it does require the ability to work alone and self motivate to reach goals.

      7. Education

 In the US about 60 percent of chemical sales personnel have university degrees in chemistry, and whilst this figure may be lower in other parts of the world, a good understanding of chemistry is more than helpful.

In fact a common route to becoming a chemicals trader is having a chemistry education and then adding business courses and adapting a skills base to meet new challenges, or as new products and markets develop.

 

Job Outlook

 The chemicals industry is experiencing a prolonged period of growth, such that many companies are now beginning to hire more chemicals traders, but the market is still very competitive. The life of a chemical trader is a combination of many things. One needs to be both scientific and business minded; practical and sociable; analytical and friendly. It can require years of hard work to climb the corporate ladder, leading you to work for huge multinational companies, and yet you will be singularly responsible for your results.

Overall, this rewarding work requires a full range of skills, most importantly the ability to bridge the technical and scientific sides with the business side.