US Chemical Industry (USA Chemicals Sector)

The chemical industry in the United States is among the oldest industries. It is one of the chief exporters in USA and contributes 1.9% of U.S GDP. The globalization of US chemical industry continues. This is expected to increase the demand for chemicals which in turn boost the cause of US chemical industry in United States.

Employment and Product Status of US Chemical Industry

The chemical industry in the United States is among the oldest industries. It is one of the chief exporters in USA and contributes 1.9% of U.S GDP. The globalization of US chemical industry continues. This is expected to increase the demand for chemicals which in turn boost the cause of US chemical industry in United States.

Employment and Product Status of US Chemical Industry
US chemical industry also ranks high in terms of employment opportunities available. It employs more than a million people and pays higher wages in comparison to other manufacturing industries in USA.

Role of US Chemical Industry in Exports
With the growth of chemical markets in

  different parts of world the scope for growth of chemical companies in the U.S has increased in recent times. Chemicals manufactured in the United States serve as important items of exports. The foreign investments increase the possibility of establishing factories on foreign shores to meet ever increasing levels of local requirement. This also leads to opening up of market to other goods and products thereby contributing to the growth of exports.

Size of US Chemical Industry
The chemical industry in U.S is huge in terms of its production as well as its market. It is in fact the largest chemical industry in world. The chemical plants in USA manufacture about 24% of the total chemical production of the world. Japan, Germany and France occupy the successive ranks respectively. A large chunk of the income from US chemical industry is spent on research and development. Some of the leading chemical manufacturers in the United States include Lyondell Chemical, Chevron Phillips, DuPont and ExxonMobil.

Products of US Chemical Industry
The industry yields a wide variety of products, as many as 70,000 types of them. It also provides great scope for research and development. Different products of US chemical industry include chlorine, benzene, toluene and several other chemicals. Most of these are used by other chemical manufacturers as raw materials to produce other chemicals. The companies that form the base of the chemical industry include those that use inorganic and organic substances to manufacture chemicals. This includes processes of changing organic and inorganic raw materials to “building block” or primary chemicals. These include propylene, butadiene, chlorine, ethylene, methane, xylene, toluene and butylene. These are then used to make steel, glass, paper and other products like plastics, paints, artificial fibers, paints and “specialty” chemicals like water treatment chemicals.

Structure of US Chemical Industry
The US chemical industry comprises of several key components. These allied industries include about 9,125 corporations. These include pharmaceutical segment, industrial segment and other chemical products. The industrial chemicals segment is engaged in manufacture of petrochemicals, plastic resins, man made fibers and synthetic rubber. Pharmaceuticals section develops virus vaccines, medicinal botanicals and chemicals, serums, toxoids and plasmas. Varnishes, fertilizers, paints, pesticides, sealants, enamels and adhesives comprise other chemical products.