China may be re-adjusting its economy and the commodities-based BRICS are suffering, but, while the IMF is not always right, it is forecasting a global growth increase from 3.1% to 3.4% in 2016 and 3.6% in 2017.
Most of that momentum is predicted to come from the emerging markets and developing economies, where growth in expected to be faster than at any period since the 2008-2009 financial crisis. South East Asia and India appear to be the zones of fastest growth, balanced by recovery in Europe and weaker but continuing progress in the US.
While lower oil prices continue to release funds for us as consumers to spend on other products fuelling this growth, they are certainly curtailing the enthusiasm of the oil majors. Unsurprisingly, 2015 proved a depressing year for all - with BP also still struggling to shake-off the effects of Deepwater - and OPEC remains in short-term crisis. However, there are some glimmers of hope as oil prices have picked-up slightly and Exxon still views oil as main support for the world's energy needs to 2040.
Meanwhile, the recent Caterpillar results highlight the challenges faced by many of the big machinery manufacturers. Sales in 2016 are forecast to be down as much as 25% from 2014, a small matter of $13bn! Fortunately, this may be offset macro-economically by the continuing growth in the automotive sector, with more than 97 million cars expected to be produced this year - an increase of more than five percent.
In the lubricants industry, companies are responding to shifts. Oilcos continue to want to deliver more to consumers using fewer products. OATS sees clear evidence of this in the need to “stretch” products for their recommendations on websites.
Of course, we have adapted our tools to meet that particular need with Product Manager (PM) making this process easier for clients to implement and maintain. Combined with our investment in more data, we can now offer a range of tools through our FUSiON platform to enhance presentations, marketing and product delivery to your customers.
We look forward to talking to you about how OATS can help in more detail. Simply contact Diana Shen in China or, for global information, you can reach OATS via e-mail or follow our updates on social media via Twitter, Facebook, LinkedIn and Google+.
Sebastian Crawshaw
Chairman