C&EN: FACTS & FIGURES FOR THE CHEMICAL INDUSTRY

Last year seemed a relatively quiet time for the chemical industry. In the U.S., there were few big mergers or restructurings. The industry grew, albeit slowly. And around the world, growth continued. But under the surface, there were rumblings that set the stage for the downturn that is occurring worldwide this year, and the U.S. seems to have led the way. For instance, higher feedstock costs and slower demand growth, which seem to have first appeared in the U.S., are making their way everywhere. The result is that, just when the worldwide chemical industry seemed poised to have a good period of growth, it has begun to slip again.

These are some of the conclusions that can be gleaned from the data that are included in this year's Facts & Figures for the Chemical Industry.

The amassing of the vast amounts of global information and statistics that make up this special report has largely been the work of Assistant Managing Editor Michael McCoy, Senior Correspondent Marc S. Reisch, Assistant Editor Alexander H. Tullo (Northeast News Bureau); Senior Editor Patricia L. Short (London); Houston Bureau Head Ann M. Thayer; and Asia-Pacific Bureau Head Jean-François Tremblay (Hong Kong); coordinated by Senior Correspondent William J. Storck (Northeast News Bureau).

Note: The following links are in Adobe PDF format.

Slowing demand in downstream markets caused U.S. chemical production to rise a lackluster 1.7% last year, slightly below the year before, as production of large-volume industrial chemicals and synthetics increased less than 1%.

The year had a strong start, but rising feedstock costs, high interest rates, disadvantageous currency translations, and slowing growth in the U.S. economy cut into bottom-line results to produce only modest earnings growth and declining profitability for the year.

Total chemical employment and the number of production workers in the chemical industry both fell for the second straight year as producers tried to rein in costs and increase productivity. Wages, however, increased, raising unit labor costs.

The chemical trade surplus continued to shrink despite double-digit growth in exports, as imports increased even faster, spurred by the strong dollar and imports of products by U.S. manufacturers from their own overseas plants. And financial results improved at most European chemical companies. However, many firms saw declining profit margins. In Asia, production continued to increase, spurred by rising exports, as new capacity came onstream. Profits improved at Japanese companies.