There may be some of you out there who are wondering if it’s a good idea to be involved in the silicone business. It’s a good question given that there are hundreds of companies out there that already have established a solid foundation in the industry.
Jumping on the Bandwagon
Similar to starting with any other business, first you need to do your homework on the niche that you have in mind.
Currently, silicone’s market size in terms of value is appraised to be at $5.2 billion this year and is estimated to grow to $7.3 billion in the next five years, flourishing at a compound annual growth rate of 5.62 percent between 2015 and 2020.
The Asia-Pacific region is presently the largest market in terms of volume and value, as well as the fastest growing area in the global silicone fluid industry. Countries following are Europe, China, South Korea, India, Brazil, and the Middle East, all of which are projected to further prosper in this market.
It’s important to note that while there are a lot of products incorporating silicone in its material, there’s also a vast range of niches that silicone hasn’t reach yet. And this is one of the doors you need exploring if you’re to jump on this bandwagon.
Come up with a product that can be improved by silicone. Not just any product, though. Think of something that is being used every day by your Average Joe.
Angle of Approach
But don’t just limit yourself at products you can integrate silicone with. Think outside the box. This is what former Portage Precision Polymer Inc. director Erick Sharp did. With the acquisition of the PPP by Hexpol A.B., Sharp knew he was going to be let go.
With a deep background in the silicone area, Sharp created Ace Products and Consulting L.L.C. This background is one of his foundations in pushing his new company forward. The consultation Ace provides to its clients revolve on rubber, silicone, and manufacturing industries ranging from new product development, launches, training workshops, and supply sourcing. Ace will also supply raw materials for rubber and silicone companies.
Sharp has been a manager for the PPP since 2011 after being a part of Edgetech for ten years where he acquired a lot experience regarding development of silicone compound and its extrusion, as well as having a hand in helping the firm add to its rubber mixing line, separate silicone line, and mixing facility.
The new company owner stated that he has observed a significant amount of activity in its consulting services and wishes to make name for a brand that the silicone industry will highly recognize within three years.
With regards to the raw materials product, however, Sharp said it’ll take much longer due to sourcing qualifications involved.
With the growth of the silicone market and silicone making its way to a lot of end-users, there’s no better time to join in this flourishing industry.