ILMA Compoundings April 2018 - 31

annual report on lubricant demand in
the European Union covers 2006-16
and 18 countries. The publication
includes European market statistics
where official data from countries
exist as well as estimates based on a
sophisticated algorithm where official
data are not available. It is part of the
UEIL's mission to provide reliable
statistics to support decision-makers
and to deepen the understanding of
the European lubricants market and
product groups, both now and as new
technologies call for new kinds of
lubricants in the future.

Digitalization

Let's turn now from data to digitalization. Digitalization is a disruptive
development that lubricant manufacturers need to take charge of. Broadly,
the term refers to employing information technology to make business
practices more effective. Digitalization
can be an opportunity for and a threat
to the traditional lubricants industry.
In the near future, data collection
throughout the whole value chain
will be widened compared to today's
standards. Direct and automated usage
of information generated at a later
step of the process will affect all steps

that come before. Extended exchanges
between customers and lubricants companies will allow for new services and
therefore add extra value to businesses.
While this is often done by existing
businesses, startup companies could
use digitalization to nudge their way
into the lubricants industry. There are
startups today applying numerous statistical and simulation methods to dig
into the relationships between lubricant
manufacturers and customers. This
trend is mostly visible in China. These
startups serve manufacturers by offering
to analyze part or all of their operations.
They might advise the manufacturers
not only about their lubricant usage but
also on other aspects of their business,
such as the raw materials or equipment
used in the manufacturing process.
The potential threat to lubricant
marketers is that these startups might
also determine the lubricant characteristics that are needed, then take it
a step further and identify the best
source for such performance, rendering the lube supplier little more than a
toll manufacturer. The startups could
offer directly to the customer sophisticated tools such as sensory condition
monitoring, explorative statistics, data
mining and big data, all of which can

be used for system modeling in the
chemical, tribological, logistics and
manufacturing areas.

Decarbonization

The other major disruptor facing
lubricants marketers are sustainability
and decarbonization, which refer also
to e-mobility. The successful technical breakthrough of electric vehicle
technology depends on three factors:
competitive car prices, increased driving range and accessible recharging
infrastructure. Electric vehicles have
different lubrication needs, so factory
fill engine and gear oil demand will
shrink significantly, as will metalworking fluid demand, while aftermarket
demand for automotive lubricants will
shrink slightly each year as internal
combustion engine vehicle stock is
replaced. First-fill grease demand
needs to be evaluated, too, as some
applications will grow in volume and
new applications could come up. Also,
the trend toward lighter weight, as
steel is replaced with more aluminum
and thermoplastics, could lower the
demand for forming lubricants and
corrosion preventives. On the other
hand, the batteries for electric vehicles

31



Table of Contents for the Digital Edition of ILMA Compoundings April 2018

LETTER FROM THE PRESIDENT
LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
In the Know
International Insight
Market Report
DO DISRUPTIONS DAMAGE DURABILITY?
REAGAN’S TRADE LESSONS FOR TRUMP
MINING FOR SUCCESS
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
Member Connections
Cross Connections
PORTRAIT
ILMA Compoundings April 2018 - Cover1
ILMA Compoundings April 2018 - Cover2
ILMA Compoundings April 2018 - 1
ILMA Compoundings April 2018 - 2
ILMA Compoundings April 2018 - LETTER FROM THE PRESIDENT
ILMA Compoundings April 2018 - 4
ILMA Compoundings April 2018 - LETTER FROM THE CEO
ILMA Compoundings April 2018 - INSIDE ILMA
ILMA Compoundings April 2018 - 7
ILMA Compoundings April 2018 - 8
ILMA Compoundings April 2018 - 9
ILMA Compoundings April 2018 - 10
ILMA Compoundings April 2018 - 11
ILMA Compoundings April 2018 - WHAT’S COMING UP
ILMA Compoundings April 2018 - 13
ILMA Compoundings April 2018 - INDUSTRY RUNDOWN
ILMA Compoundings April 2018 - 15
ILMA Compoundings April 2018 - In the Know
ILMA Compoundings April 2018 - 17
ILMA Compoundings April 2018 - International Insight
ILMA Compoundings April 2018 - 19
ILMA Compoundings April 2018 - Market Report
ILMA Compoundings April 2018 - 21
ILMA Compoundings April 2018 - 22
ILMA Compoundings April 2018 - 23
ILMA Compoundings April 2018 - 24
ILMA Compoundings April 2018 - 25
ILMA Compoundings April 2018 - 26
ILMA Compoundings April 2018 - 27
ILMA Compoundings April 2018 - DO DISRUPTIONS DAMAGE DURABILITY?
ILMA Compoundings April 2018 - 29
ILMA Compoundings April 2018 - 30
ILMA Compoundings April 2018 - 31
ILMA Compoundings April 2018 - 32
ILMA Compoundings April 2018 - 33
ILMA Compoundings April 2018 - REAGAN’S TRADE LESSONS FOR TRUMP
ILMA Compoundings April 2018 - 35
ILMA Compoundings April 2018 - 36
ILMA Compoundings April 2018 - 37
ILMA Compoundings April 2018 - 38
ILMA Compoundings April 2018 - 39
ILMA Compoundings April 2018 - 40
ILMA Compoundings April 2018 - 41
ILMA Compoundings April 2018 - MINING FOR SUCCESS
ILMA Compoundings April 2018 - 43
ILMA Compoundings April 2018 - 44
ILMA Compoundings April 2018 - 45
ILMA Compoundings April 2018 - 46
ILMA Compoundings April 2018 - 47
ILMA Compoundings April 2018 - COUNSEL COMPOUND
ILMA Compoundings April 2018 - 49
ILMA Compoundings April 2018 - 50
ILMA Compoundings April 2018 - 51
ILMA Compoundings April 2018 - WASHINGTON LANDSCAPE
ILMA Compoundings April 2018 - 53
ILMA Compoundings April 2018 - Member Connections
ILMA Compoundings April 2018 - 55
ILMA Compoundings April 2018 - 56
ILMA Compoundings April 2018 - 57
ILMA Compoundings April 2018 - Cross Connections
ILMA Compoundings April 2018 - 59
ILMA Compoundings April 2018 - 60
ILMA Compoundings April 2018 - 61
ILMA Compoundings April 2018 - 62
ILMA Compoundings April 2018 - 63
ILMA Compoundings April 2018 - PORTRAIT
ILMA Compoundings April 2018 - Cover3
ILMA Compoundings April 2018 - Cover4
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