Which is Better: Chemical Management or Chemical Leasing?

Chemical Management                                Chemical Leasing

How are they similar?

• Both offer ways to bridge gap of insufficient knowledge to optimize the processes in order to reduce the consumption of chemicals
• Both align incentives NOT to buy, use and dispose more chemicals
• Both are long-term focused with annual metrics measured against benchmarks
• Both reduce the high transaction costs of buying lots of chemicals from few suppliers. On average 65-75% of all chemicals purchased are from manufacturers/resellers who supply 1-3 line items.
• Both reduce quantity and frequency of deliveries and associated packaging waste (pallets, shrink wrap, etc.)
• Both consolidate duplicate and redundant chemicals (ex: 5 flavors of Simple Green® or WD-40®)
• Both encourage substitution of hazardous chemicals
• Both can be structured to capitalize on customer’s chemical waste
• Both can be structured to minimize taxes
• Both are under utilized especially among small to mid-sized organizations

How are they different?

• Chemical management is more established beginning in 1990’s compared to chemical leasing which began in 2006
• Chemical management is more embraced globally whereas chemical leasing is not actively promoted within United States one of highest chemical consumers
• Chemical leasing places greater incentives on capital/equipment for service provider than chemical management
• Chemical leasing is better suited for process/production/manufacturing processes whereas chemical management has more versatility and can be implemented for maintenance/overhaul/refurbish chemical processes