Industry Analysis & Industry Trends
Over the five years to 2016, industry revenue is expected to fall, because chemical manufacturers rely heavily on downstream demand from the manufacturing sector, and manufacturing activity is expected to slow over 2016, as it has over the past two years. Meanwhile, demand for photographic chemicals and materials, which are key industry products, has been waning for over a decade. The poor performance of this product segment continually cuts into overall industry revenue. In the five years to 2021, industry revenue is expected to remain relatively flat, as manufacturing levels are forecast to rise in markets such as automobile parts and construction materials, boosting demand for chemicals needed in downstream production... purchase to read more
Industry Report - Industry Investment Chapter
The Chemical Product Manufacturing industry has a moderate level of capital intensity. In 2016, industry manufacturers are expected to spend $0.18 on machinery, equipment and other capital expenses for every $1.00 spent on labor. This figure reflects industry operators' heavy dependence on equipment and machinery. Due to the complex and varied composition of chemical products, manufacturers need technologically advanced equipment for the production, development and testing stages of the manufacturing process. Many operators that manufacture a variety of chemical products may also require separate facilities depending on the complexity of each product.
By contrast, wages account for a relatively small portion of industry revenue, in line with other manufacturing industries... purchase to read more