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PRODUCTION: Strong growthC hemical production in the U.S. grew strongly in most sectors last year, although the pace of the overall industry didn't match that of the total manufacturing enterprise.Production of the overall chemical in dustry rose 4% from the previous year, up from the 3% gain in 1996, according to the Federal Reserve Board's index of production for chemicals and allied products. The index for the subcategory of chemicals and synthetic materials - basic industrial chemicals plus polymers - rose 5% last year following a 2% gain in 1996. Eleven of 13 chemical categories posted production gains, according to Federal Reserve figures. Growth ranged from 1% for agricultural chemicals to 8% for inorganic pigments and 6% for both industrial organic chemicals and drugs and medicines. Inorganic chemicals not elsewhere classified basically showed no growth, and paint production declined 5%. Production of basic chemicals - inorganics - increased 3% in 1997. That increase marked a recovery from 1996 when output declined nearly 4%. For specific inorganic chemicals, data from the Department of Commerce show a gain in the production of most major products, ranging from a 25% increase in nitrogen gas production and a 10% increase for titanium dioxide to a 2% increase for phosphoric acid. Sulfuric acid and sodium chlorate production were virtually unchanged, and ammonium nitrate production declined 9%. Although the Federal Reserve pegged industrial organic chemical production growth at 6% in 1997, output of specific organics tracked by the National Petroleum Refiners Association (NPRA) varied widely. For example, the association's data show that ethylene dichloride production jumped 132%. However, an NPRA spokesman explained that 1996 was the first year NPRA collected data that the International Trade Commission formerly collected. Thus, missing and incomplete data for 1996 accounted for discrepancies in production with more complete information for 1997. Other NPRA data that show double- digit increases in 1997 were for p-xylene, up 26%; aniline, up 24%; ethylbenzene and o-xylene, each up 23%; ethylene oxide, up 14%; benzene, up 11%; and propylene, up 10%. On the other hand, according to data supplied by the Census Bureau, urea production declined 9%. Output of synthetic materials posted a 5% gain in 1997, according to the Federal Reserve, continuing a six-year pattern of steady growth. Within that category, plastic materials rose 5% and synthetic fibers increased 4%. The Society of the Plastics Industry reported production gains of 5% for thermosetting resins and 6% for thermoplastic resins in 1997. The largest gain was for polypropylene, which was up 11% to 13.3 billion lb. Also showing significant production increases were thermoset urea, up 9% to 2.3 billion lb, and polyamide, also up 9% to 1.2 billion lb. The Fiber Economics Bureau reported modest growth of 4% for synthetic fiber production in 1997 to a total of 10.3 billion lb. Noncellulosic fibers, by far the largest synthetic fiber component, grew 4%. But cellulosic fiber production continued a four-year downward spiral, declining 3% in 1997 following a 5% drop in 1996. Polyester fiber was the pacesetter among synthetic fibers, with a production gain of 6% to 4.1 billion lb.
 Note: Seasonably adjusted. Source: Federal Reserve Board Synthetic rubber is included in the Federal Reserve's larger synthetic materials production index, but more specific figures come from the International Institute of Synthetic Rubber Producers. Those data show that North American synthetic rubber shipments grew 3% in 1997, marking the sixth year of continuous growth. Outpacing the average for the group were both styrene-butadiene rubber and polybutadiene, each up 4% to 939,000 and 555,000 metric tons, respectively. Although Federal Reserve data show that paint production declined 5% in 1997, the Department of Commerce recorded a more precipitous 7% decline in paint shipments. Commerce's revisions to the 1996 data resulted in paint shipments rising only 2% in 1996 rather than the 12% increase it reported last year. All categories of paint registered shipment declines in 1997, with the architectural paint category registering the biggest decline - 11%. In agricultural chemicals, Federal Reserve data show production rose only 1% in 1997, and, in close agreement, Fertilizer Institute estimates that consumption, admittedly a slightly different measure, also rose 1%. Consumption levels of 22.3 billion lb are still below the decade peak of 22.4 billion lb in 1994. Global competition includes some caveats for future growth of U.S. chemical production. According to the Chemical Manufacturers Association's economics managing director, Allen J. Lenz, growing global chemical production signals a tougher, more competitive environment for the U.S. chemical industry. Although more productive capacity over seas may mean a diminished role for U.S.-based production in terms of total global production, Lenz says, it does not "necessarily signal a decline for U.S.- based production."
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