Complacency Kills
Read Time: 6 minutes
As we conclude our series on the five pillars of successful chemical suppliers in Europe, today we highlight Pillar 5: Keep Evolving – Complacency Kills.
Adapt, or get left behind.
The European market rewards adaptability, not just low prices or past success. It’s a dynamic market where regulations change, sustainability standards rise, and digital transformation reshapes how business is done. In this environment, resting on your laurels can be fatal for a company’s ambitions.
We need to challenge the old mindset of “We’ve always done it this way, and it worked fine.” In Europe’s chemical industry, that logic no longer holds. A strategy that brought success a decade ago can quickly become outdated. Consider how rapidly market conditions have evolved: buyers now demand greener products and transparency, and EU authorities continuously tighten rules on chemicals. A supplier that keeps doing business as usual – relying on a single popular product or a cost advantage – risks waking up to find that the market has moved on without them.
Even industry leaders can fall behind if they fail to adapt. Kodak was once a giant in film chemicals and photography, but it clung too long to its old business model. As digital technology revolutionised imaging, Kodak’s reluctance to pivot led to bankruptcy. Meanwhile, its competitor Fujifilm reinvented itself (investing in new materials, pharmaceuticals, and digital tech) and continues to thrive.
The lesson is clear: past success means nothing if you don’t respond to change. Complacency killed Kodak’s dominance; adaptability kept Fujifilm alive. The same can happen in chemicals more generally. Today’s reliable revenue stream could evaporate if a company ignores trends.
“When you’re finished changing, you’re finished.”
– Benjamin Franklin
Nowhere is complacency more dangerous than with EU regulations. The European Union is constantly updating chemical requirements in the name of health, safety, and sustainability. Regulatory frameworks like EU REACH regularly add restricted substances or new obligations, forcing companies to continuously adapt their processes and formulations.
If you assume your product lineup will always be acceptable, think again. Industry association CEFIC recently acknowledged that as many as 12,000 chemicals in use have concerning health or environmental profiles. In fact, the EU has unveiled a “great detox” roadmap to restrict or ban all of those by 2030. This means a chemical that’s legal and in demand today might be outlawed tomorrow. Companies that fail to plan for safer alternatives or ignore upcoming bans could see key product lines wiped out virtually overnight.
Staying still is also risky as market preferences shift. European customers and end-consumers are increasingly prioritising sustainability. For instance, extreme climate events and public pressure have put climate action high on the agenda, pushing chemical producers to cut emissions and offer greener solutions.
Many companies are already responding by transforming their portfolios. Phasing out legacy products and investing in new ventures like battery materials and bio-based plastics to meet emerging demand. Those that move early into these areas can capture market share from idlers. On the other hand, firms that ignore sustainability trends (or assume cost alone will keep customers) are finding themselves dropped from supplier lists.
Adaptation isn’t just about products and regulations though; it’s also about technology and processes. The rise of digitalisation is a prime example. From supply chain management to customer service, digital tools are changing the game. Companies embracing modern, data-driven approaches can respond faster and operate more efficiently. Studies show that digitally mature firms are significantly more profitable than their peers on average. In the chemical sector, that can translate to better demand forecasting, quicker compliance documentation, and more responsive customer communication.
A few forward-thinking chemical manufacturers have already integrated AI and IoT for process optimisation and real-time monitoring, cutting costs and improving reliability. In contrast, those stuck with paper trails and legacy systems may struggle to meet the EU’s expectations for transparency and speed. The bottom line is, whether it’s new regulations, sustainability expectations, or tech adoption, companies must keep evolving. Failing to do so can actively erode your hard-won position in the market.
How to Stay Ahead of the Curve
So, how can you make sure your business continues to adapt and doesn’t fall into the complacency trap? Here are some practical steps to future-proof your EU market success:
Horizon Scan Regulations: Set up a process to monitor upcoming EU rules and industry standards. Subscribe to EU chemical regulatory news updates, participate in industry forums, and engage compliance experts. By keeping abreast of changes, you won’t be blindsided by new deadlines or restrictions – for example, knowing early about a proposed substance ban gives you time to reformulate a product rather than scrambling last-minute. Make regulatory foresight a routine part of strategy discussions.
Invest in Sustainable Innovation: Allocate budget to R&D for greener alternatives and improved processes. Aim to replace hazardous materials before you’re forced to. This could mean developing low-toxicity substitutes for at-risk chemicals or improving your processes to reduce waste and carbon footprint. Not only will this keep you ahead of regulations, it also creates a marketing advantage with customers seeking sustainable partners. Track sustainability trends relevant to your sector (e.g. biodegradable plastics, renewable feedstocks) and be willing to pivot. Companies outside Europe are already shifting into areas like battery materials and eco-plastics to stay competitive.
Embrace Digital Transformation: Don’t let your operations or customer engagement lag. Adopting digital tools can boost your agility. For instance, using modern inventory and shipping software will help you react faster to supply chain hiccups, and implementing a digital customer portal can make it easier to handle orders, compliance documentation, and support. Even simple steps like digitising your safety data sheets and compliance records can speed up responses to regulatory checks. The goal is to use technology to become more responsive and efficient than competitors who rely on slow, manual processes.
Cultivate a Change-Friendly Culture: Encourage your team to question the status quo and bring new ideas. Make continuous improvement a core value. Celebrate employees who spot a trend or inefficiency and propose a fix. You might establish periodic brainstorming sessions on “what’s changing in our market?” or send key staff to conferences to spark fresh thinking. Ensure that past successes don’t create an attitude of “don’t fix what isn’t broken.” Instead, reward initiative and adaptability. If your whole organization is primed to evolve, you’ll adapt to external changes much more smoothly.
Partner and Learn: Sometimes the best way to stay adaptable is to not go it alone. Engage with EU-based partners, whether they be distributors, industry associations, or consultants. They can provide early warnings on local market shifts or regulatory talk. Learning from others’ experiences can save you from complacency. For example, joining an industry network might alert you that several suppliers are exploring a new biodegradable solvent – a hint that you should investigate it too. Similarly, maintain close communication with your European customers; ask them about emerging concerns or needs. Their feedback can guide your next innovation or improvement before your competitors catch on.
By taking these steps, you’ll build adaptability into your business model. The companies that thrive in Europe are those that treat change as an ongoing opportunity, not a threat. Every new regulation or trend can become a chance to differentiate yourself – if you’re ready for it.
It’s natural to feel some resistance when faced with the need for constant evolution. Let’s address a few common objections:
“But we’ve always been successful with our current approach.”
It’s easy to fall back on past success as justification to keep things the same. However, remember that past success was built in past conditions. The EU market today is not the same as a decade ago – and a decade from now it will be different again. Clinging to an old formula while the landscape shifts is like betting your business on the status quo staying frozen. Many once-great companies have learned the hard way that assuming continued success without change is a costly mistake. Just because your flagship product sells now doesn’t mean it will survive the next regulatory update or a new competitor’s innovation. In short, what got you here won’t necessarily get you there.
“Adapting is expensive and risky – what if it hurts our margins?”
Yes, investing in new compliance measures, technologies or product development has a cost. But consider the cost of not adapting. Losing EU market access due to a regulation you ignored, watching a competitor seize your customers with a more innovative offer, or scrambling through a crisis because you lacked digital systems. Those scenarios can be far more expensive. Think of adaptation costs as insurance and investment in future profits. For instance, spending now to improve a formula could save you huge sums by avoiding a product ban or expensive retrofit later. Moreover, European buyers are often willing to pay a bit more for suppliers who are ahead on sustainability or reliability – so the returns on your investments can be significant. In many cases, the cost of complacency is far greater than the cost of change.
“Our customers aren’t asking for anything new.”
Maybe you haven’t heard direct complaints or requests, but buyer expectations often evolve quietly. European customers might not explicitly say “please digitalise your supply chain” or “offer greener products,” but they will notice and favour suppliers who do these things. If you wait until customers are demanding change, you’re already late. By being proactive, you can delight customers and differentiate yourself. Also, consider that your customers have pressures too – their regulators, stakeholders, or end-consumers are pushing them to improve sustainability and efficiency in their supply chain. If you help them meet those goals, you become a preferred partner. On the flip side, if you remain static, don’t be surprised if one day you lose a key account to someone who embraced a new approach. Listening to the market isn’t just about explicit requests; it’s about reading the writing on the wall.
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So, there you have it…
Standing still is not an option. Complacency kills opportunities, while adaptability secures them. The EU market rewards those who stay curious and agile – companies that continuously improve their compliance, sustainability profile, and ways of working. Remember that regulations will keep evolving and customer preferences will keep shifting. The suppliers who treat this reality as business-as-usual (and even exciting) will outlast those who resist change.
To sum up, make adaptability part of your brand’s DNA. Keep an ear to the ground for new rules and trends, invest in innovation and digital tools, and never assume that yesterday’s victory will carry over unchallenged. Companies that evolve not only survive – they thrive, turning challenges into competitive advantages. As one executive put it, success in the past can breed dangerous complacency.
Don’t let that be your story. Instead, build a reputation as the supplier that’s always improving, always looking ahead. That’s the kind of partner European customers will stick with for the long haul.
I’d love to hear your perspective. Have you seen a once-successful business fall behind because it failed to adapt? Or do you have a success story of your own company making a pivotal change to meet EU requirements or market trends?
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Thanks for reading, and see you next week.
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