U.S Chemical Industry is world famous for its contribution towards the chemical world. U.S.A holds the first place in the whole world in producing chemicals. U.S Chemical Industry is as important for Economy as for the whole world. This is because, U.S Chemical Industry generates almost 2.1% of GDP of United States. Not only that,the industry generates a lot of employment in United States and also strengthens the export base of U.S Economy.
Chemical Industry is somewhat very important for every economy because a lot of industries like Consumer Goods Industry, Telecommunications Industry require chemical products which can be supplied only by the Chemical Industry. The case is no different in U.S. In fact, growth of U.S Chemical Industry is very crucial for U.S Economy. For this reason in U.S.A, a lot of research and development work in the field of Chemistry are carried out in U.S. Billions of dollars are invested annually with the objective of inventing new chemical processes and for enhancing productivity of the U.S Chemical Industry.
The Basic Structure of U.S Chemical Industry
U.S Chemical Industry along with the Chemical Allied Product Industry can boast of the existence of almost 9215 corporations which are involved in manufacturing, marketing and development of Chemical Products. We can divide these corporations on the basis of the chemical products that are manufactured by them. In that way the division can be the following:
- The corporations that produce chemical products like Alkali, Chlorine, Plastic Resins, synthetic Rubber, Industrial Gases and other Industrial Organic and Inorganic Chemicals.
- The corporations which are engaged in producing Medicinal Chemicals like bacterial and virus vaccines, plasmas and serums.
- The corporations involved in manufacturing of perfumes, paints, enamels, adhesives and Agricultural Chemicals like pesticides and fertilizers.
With the advent of globalization, the U.S Chemical Industry faced increased competition. To compete with all the Global Chemical Companies of the world, U.S Chemical Industry not only tried to increase its Chemical Export but also started producing in foreign markets. This was done with the aim of expanding total sales and profit of the chemical industry. But, the ultimate result not only depends on the internal factors like individual company decisions, growth strategy, management of cost of production but also on the external factors like U.S govt. economic and trade policies, international protection of intellectual property and the changing political and economic conditions of the world.