New York, NY (PRWEB) February 22, 2014 -- Although the Chemical Product Manufacturing industry is highly fragmented and diverse, it comprises a significant part of the US chemical sector, accounting for about 5.0% of the sector's revenue and 10.0% of its employment. “The industry's products range from custom-compounded resins to photographic paper and chemicals to writing inks and motor oils,” according to IBISWorld Industry Analyst Kerry Coughlin. As with other chemical industries, chemical product manufacturers' revenue dropped during the recession but has rebounded as downstream demand has picked up strength.
From 2009 to 2014, industry revenue is expected to increase at an annualized rate of 3.8% to $41.1 billion, with a slight contraction of 0.3% in 2014. Chemical manufacturers rely heavily on the manufacturing sector for business, especially from the automotive, appliance and construction industries. Manufacturing levels have just started to return to prerecession levels. Meanwhile, demand for photographic materials, another key industry product, has been waning since even before the recession. Photographic materials account for about 33.0% of industry revenue; however, this product segment has been gradually because photographers are increasingly switching from traditional film to digital photography. This product segment's low demand has continually cut into overall industry revenue.
One trend that has helped stave off further declines is the overall rise in export demand, as buying industries become more globalized and more foreign companies begin to demand chemical products. “Nonetheless, sluggish domestic growth has offset revenue gained from exports, pushing many operators to consolidate,” says Coughlin. Over the five years to 2014, the number of companies has fallen at an average annual rate of 2.6% to 1,516 enterprises. Rising material costs have only accelerated this trend, making it tougher for enterprises to remain profitable.
From 2014 to 2019, industry revenue is expected to rebound. Manufacturing levels are forecast to rise in industries like automobile parts and construction material manufacturing, boosting demand for chemicals needed in production. Still, weak demand from the photography industry will continue to dampen industry revenue.
For more information, visit IBISWorld’s Chemical Product Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Chemical Product Manufacturing industry manufactures a diverse range of chemical products. Key activities include custom compounding plastic resins and manufacturing toners, toner cartridges, photographic chemicals and sensitized photographic film, paper and plates. Custom compounding of plastic resins includes custom mixing and blending of purchased plastic resins and reformulating plastic resins from recycled plastic products.
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld 2, +1 (310) 866-5042, [email protected]
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