THE BUSINESS CORNER    

Boom, Gloom and the New Normal - Part 5   

(Access Archives for Part 1, Part 2, Part 3, Part 4)     

By Paul Hodges, International eChem 

WHEN I'M SIXTY-FOUR

"Will you still need me, will you still feed me, When I'm sixty-four?"

The Beatles asked the right questions back in 1967, when singing 'When I'm Sixty-Four' on their iconic Sergeant Pepper album.

What would happen to the Western BabyBoomers when they became 64? Would they be about to die, as had previous generations? Or would their future be different? Today, we are starting to discover the answer to The Beatles' questions, as the oldest Boomer reached the age of 64 last year.

Chapter 5 in the free ICIS/International eChem Boom, Gloom and the New Normal: How Western BabyBoomers Are Changing Chemical Demand Patterns, again, eBook describes how companies need to adapt their business models to this New Normal.

One measure of the change underway is that two-thirds of all those who have ever reached the age of 65 years in the world are alive today. This is the demographic timebomb that faces us.

The Boomers have been the richest, and largest, generation that the world has ever seen. But since 2001, they have been entering the 55+ age range, when people typically spend less and save more. By 2020, an unprecedented 33% of the developed world population will be over 55 years old.

It is not surprising, therefore, that recent 'recoveries' have proved relatively weak, in spite of unprecedented amounts of stimulus. The Boomers simply don't need more housing or new cars. Equally, they are becoming uncomfortably aware that their pension funds may now have to support them for one or more decades, rather than just a few months or years.  

Western women are particularly likely to become more cautious in their spending, as equal pay for equal work remains only an aspiration for many. And whilst women have longer life expectancies than men, 25% are only in part-time employment, according to official figures from the Organisation for Economic Co-operation and Development. So their prospective pensions are even smaller.

Thus we must assume that future demand growth will be slower. We must also plan for a world where regular and deeper recessions are likely to become a feature of the global economy once more, in contrast to the relatively smooth growth seen during the Boomer-led Super Cycle.

But the Beatles provide a reliable guide, if we are prepared to listen to their message from 'When I'm Sixty-Four'. The megatrends such as an ageing population and the need for improved food production provide the key to future success.

Go to www.icis.com/NewNormalEbook to download Chapter 5.

Chemicals and the Economy blogger. Watch Paul's latest insight on ACS Webinars on 2011 Chemicals and the Economy Mid-Year Analysis and Projections.  

Email us chemical business topics you would like us to cover in future issues.

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CONSULTING TIP OF THE MONTH  

HOW NOT TO GET SUED - Limiting Liability for Consulting   

Michael J. DeLaurentis, Esq, U.S. International Tax Services, LLC 

A consultant is self-employed, so there's no employer protection if a client or third party alleges a personal injury or damage to property caused by the consultant or his advice or product. "Personal injury" could include alleged damage to reputation, lost profits or business opportunities, regulatory penalties, or other harm. A plaintiff might even allege gross negligence, recklessness, or intentional harm. The stakes could be high, even if ultimately the consultant is exonerated. What to do?

There are basically three ways to limit liability: buy insurance, set limits contractually, and operate through a limited liability entity. (A fourth way - personal asset and liability planning - is beyond the scope of this Tip.) Special care may be required in engagements involving non-US clients.

The client engagement letter might provide that the client's acceptance of the consultant's services will act as a bar to the client's taking any legal action against the consultant with respect to the consultancy and/or that the consultant's liability will, in any case, be limited to the fees paid under the engagement, regardless of actual damages alleged to have been suffered as a result of consultant negligence (or worse) or breach of contract. Provision might be made for allocation of liabilities with respect to a specific project. The engagement letter might also include: arbitration instead of litigation; that litigation be brought only in the client's jurisdiction, applying the law of that jurisdiction; that the client will pay the consultant's legal bills related to a losing lawsuit initiated by a client. A client might challenge such clauses, but they should generally be enforceable, absent fraud or other legally acceptable excuses.

General liability ["umbrella"] insurance covers most aspects of personal or property damage resulting from alleged negligence. Property and casualty insurance provides protection for property and assets. Consultants should also consider professional liability E&O ("errors and omissions") protection. The ACS offers E&O coverage for chemists and chemical engineers.

Insurance protection and contractual limitations on liability will not necessarily reach all areas of potential liability. Enter the limited liability entity (discussed in a prior Tip) - a corporation or limited liability company - which shields the consultant from liability beyond entity net worth. Consultants should consider whether the nature of their engagements requires this extra layer of protection.

A final word of caution: any mode of liability protection has its limits. Entity protection requires that the owner and employees honor formalities and maintain strict separation of personal and business activities. Contractual protection requires strict compliance with contract terms. Insurance will protect against only the risks, events, and circumstances specified in the policy; few policies will protect against intentional harm, fraud, or recklessness [though bonding under a policy of fidelity insurance might]. But even with these limitations, some form of liability protection is almost certainly significantly better than none.

Get more information on this subject or information on ACS Professional Liability Insurance. 

Michael J. DeLaurentis is the principal of an international tax and business law practice at U.S. International Tax Services LLC. He has taught courses in tax at Villanova and Temple Universities and courses in philosophy at LaSalle University. He holds BAs from Amherst and Oxford, MAs from Oxford and Brown, and a JD from Yale. He is an adjunct professor of philosophy at Drexel University.

For comments or questions, go to the Chemical Consultants Network LinkedIn Site. Mr. DeLaurentis will speak on this topic at the October meeting of the Chemical Consultants Network.

This monthly tip is brought to you in collaboration with the Chemical Consultants Network. Next month's Consulting Tip will discuss how independent consultants keep their records on billable time and expenses, tax deductible expenses, payments by clients, and more.

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THE WRITING CLINIC - The Doctor is IN 

Cut the Clutter - Part 2

(Access Archives for Part 1)  

By Kristin Sainani, PhD., Stanford University. 

With practice, writing can be pain-free. (Take this QUIZ to test your writing knowledge). Streamline your prose by eliminating:    

• Unnecessary jargon: muscular and cardio-respiratory performance
  
  • Instead of: Increased athletic activity has been associated with improved muscular and cardio-respiratory performance.
  • Try: Increased athletic activity has been associated with improved fitness.
   
• Repetitive words or clauses: examples/studies, illustrate/demonstrate, challenges/difficulties, "successful" solutions
  • Instead of: This paper reviews cancer biology study design, using as examples studies that illustrate the methodologic challenges or that demonstrate successful solutions to the difficulties inherent in biological research.
  • Try: This paper reviews cancer biology study design, using examples that illustrate specific challenges and solutions.
  • Instead of: A robust cell-mediated immune response is necessary, and deficiency in this response predisposes an individual towards active TB.
  • Try: Deficiency in T-cell-mediated immune response predisposes an individual to active TB.
   
• Adverbs: very, really, quite, basically, generally, etc.
  • Instead of: We found the treatment to be very effective.
  • Try: We found the treatment to be effective.

Kristin Sainani is a clinical assistant professor at Stanford, where she teaches statistics and manuscript writing. She is also a freelance health and science writer.

Want more tips? View Kristin's recorded presentation. 

Have writing questions for Kristin? Email us your questions or tips you would like Kristin to cover in future issues.

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FROM THE LAB CORNER    

Building Your Intellectual Adaptability! 

By Chemjobber

In a recent issue of Nature Chemistry, Keith Watson (a senior Dow manager) wrote a very candid article on changing economic and employment landscape of the chemical industry. That landscape is familiar to the employed and unemployed: major corporations are narrowing their scopes, shrinking their internal R&D and shifting hiring away from established economies towards emerging ones. As a blogger that focuses on issues of employment in chemistry, I'm terribly inured to articles like these. 

However, I found Dr. Watson's article worthwhile, because it gave several suggestions for easily improving your skills as an chemist whether in school or out of school. To show intellectual adaptability, he suggested that students of chemistry should learn the work of other professors in their department. Industrial chemists, he recommended, should learn new fields through reading leading literature references and attending conferences. He emphasized mastering the fundamentals of thermodynamics and kinetics (p-chem strikes again!) as anchors that will last over a career. 

While some of the non-technical skills were self-evident (communicating with well with non-scientists, being aware of the financial aspects of a business), one of them was not. Watson suggests becoming proficient in the skill of 'project management' and states that "any set of activities that takes more than 2-3 hours of dedicated work should get at least 20 minutes of planning." I confess to rarely planning my research activities with that level of intentionality or using a particular systematic approach. 

None of the skills in Dr. Watson's article are a magic bullet for a difficult job market, but I'm sure that they would improve your day-to-day activities as a chemist and even the finest of resumes. 

Good luck and good hunting.  

Chemjobber is a working chemist in industry; he writes a blog on employment in chemistry at chemjobber.blogspot.com.

Have lab/career questions? Email us your questions that you would like The Distillate to cover in future issues.

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• Oct. 4, 2011 - C&EN Webinar. Integration of LC-MS and HPLC Technologies for Compound Purification.

• Oct. 6, 2011 - C&EN Webinar. New FTIR Solutions for Routine Chemical, Pharmaceutical, and Academic Applications.

• Oct. 6, 2011 - CM&E Webcast. The Transformation of DuPont.

• Oct. 13, 2011 - C&EN Webinar.  EPA 525.2 for the Analysis of Organic Contaminants in Drinking Water, Groundwater, and Raw Source Water in any Treatment Phase.

• Oct. 16-21, 2011 - AIChE Annual Meeting. Minneapolis, MN.

• Oct. 23-28, 2011 - Southeastern Regional Meeting, Richmond, VA.

• Nov. 9-12, 2011 - Southwestern Regional Meeting, Austin, TX.     

The ACS's Division of Business Development & Management, Division of Small Chemical Business, Women Chemists Committee and the National Collegiate Inventors and Innovators Alliance /VentureWell invite you to attend an all day workshop focused on translating your research into a commercial innovation at the 67th Southwest Regional Meeting this year in Austin, Texas. This is an excellent opportunity for existing teams of 2 to 5 innovators to relate their research on green and sustainable materials to market definitions, segmentation and technical solutions. Space is very limited, so please apply early!

Register at: http://www.swrm2011.org/registration/  

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Chemical Formula for Cats  

Picture credit: icanhascheezburger.com

Have chemistry vids or images we should feature? Write to us at distillate@acs.org.    

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Prof. Gráinne Conole, who has a Phd in X-ray crystallography, formerly Professor of E-learning at the Open University, will now take charge of University of Leicester's award-winning e-learning initiative. The media zoo offers a physical and online space for students and teachers to interact with new technologies. Chemists can have multiple careers!     

Learn more>>  

Register for ACS Webinars on Alternative Careers for Chemists>> 

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Send us your correct answer to win the lapel pin. Three winners will be selected for this popular pin. This month's quote was submitted by Fritz Laquer from Omaha, NE. 

Email us (distillate@acs.org) your answer by October 19, 2011 to be entered into the drawing. Please use QUOTE for the subject line. The answer to the quote and the winners will be posted in next month's edition.

Congratulations to Adil Dhalla of Singapore, Kate Strom of California, and Francis Barth of France. Winners were randomly selected from all the correct entries (Answer: Who is Carl Sagan) received. Thank you to all who entered the contest.

Have a favorite quote? Please email us (distillate@acs.org) and if we use your submission, we will send you a prize.