The chemical industry is one of the United States’ biggest manufacturing industries, serving both a sizable domestic market and an expanding global market. It is also one of the apex exporting sectors of U.S. manufacturing.
Accounting for over 14% of the world’s total chemical production, the U.S. chemical business is the world’s second largest. The chemical business is the biggest exporting sector in the United States, larger than aerospace products and motor vehicles. The chemical industry’s more than 13,000 firms produce 70,000+ products.
The chemical business applying science to support and improve our quality of life is one of the oldest American industries. The chemical industry is a progressive, forward-looking, innovative industry and a keystone of the economy.
The formation of the chemical business is everchanging, with enhancing diversification into high-technology areas such as biotechnology, nanotechnology, and advanced materials that have applications in other industries.
Americans employed in the chemical business are among the most productive in the world. The increasingly complex nature of the chemical business needs new and more highly developed skills and better-trained and educated workers.
Due to access to plenty and affordable shale gas, U.S. chemical manufacturers face lower production costs comparatively. The increased competitiveness of the industry will conduct to a growing trade surplus especially in those segments benefitting the most from the shale gas revolution in the United States.
Although the strong network of relationships between the chemical manufacturing industry and the consumer is critical, chemistry is key to a number of major consumer products, including apparel, appliances, furniture, home
furnishings, light vehicles, and sporting goods, as well as agriculture and construction.
The chemical companies in the world operate a chemical businesses for selling different types of chemicals and consumer products. Chemical businesses are generally classified into the following market-driven business segments:
1.Basic Chemicals for Sales
2.Specialty Chemicals for Sales
3.Agriculture Chemicals for Sales
4.Consumer Products for Sales
Basic Chemicals for Sales
Basic chemicals are produced in large volumes to chemical formation specifications that are homogeneous in nature. Basic chemicals are generally incorporated into a manufactured product or used in processing. One way to think about this segment is that producers of these chemicals are selling molecules.
Examples of basic chemicals are inorganic chemicals, bulk petrochemicals, plastic resins, synthetic rubbers, manufactured fibers, dyes and pigments, organic chemical intermediates and printing inks.
Specialty Chemicals for Sales
Specialty chemicals are segregated and often technologically advanced products. Generally, they are manufactured in lower volumes than basic chemicals and are used for a specific objective.
Specialty chemicals enable customers to reduce overall systems costs, increase product performance and optimize manufacturing processing to enhance yield through custom solutions.
Examples of specialty chemicals are adhesives and sealants,institutional and industrial cleaners, plastic additives, water management chemicals, catalysts, coatings, electronic chemicals and other specialties.
Long-term growth prospects for specialties are generally more progressive than basic chemicals.
Many specialty markets exist, including manufacturing industries such as automobiles, consumer products, rubber products, electronics, food, foundries, lubricants, paper, plastic products, etc. and non-manufacturing industries such as oil recovery, construction, and electric utilities.
Agriculture Chemicals for Sales
Although nearly related to basic chemicals and specialty chemical, a distinguishing property of agricultural chemicals is that one end-use customer industry – farming -clearly dominates demand patterns.
The business forms of two major segments: fertilizers and crop protection.There are both commodity and specialty segments within this business.
In addition to farming, a few other businesses, such as utilities and construction, also use agricultural chemicals. It is likely that some undercounting occurs in this business segment.Also, the value of seeds and traits based on biotechnology are not included in crop protection.
Consumer Products for Sales
The consumer products business is one of the ancient segments of the chemical business for sale dating back thousands of years. Included are soaps,detergents,conditioners and other hair care products, skin care products, cosmetics, deodorants, perfume and cologne, bleaches,laundry aids, toothpaste and other oral hygiene products, shampoos, among other personal care products.
A property that distinguishes consumer products from the other segments is that they
are packaged.Almost all companies in this packaged goods segment prefer to be viewed as “household products” companies.
Largest Chemical Companies
The top 10 largest chemical companies in the world saw their average percent of sales grow by 13.65 percent Year-over-year.
The chemical industry is accommodated of all the companies that manufacture, produce, and sell industrial chemicals.
The following is a list of largest chemical companies ranked by sales generated in USD billions.
DuPont passed away BASF as the largest chemical company in the world in terms of sales finally, after BASF staying the record as the apex chemical producer for 12 years.
DuPont chemical company is an American chemical company resulting from the merger between Dow Chemical and DuPont. DuPont’s headquarters are in Wilmington, Delaware and last year brought in yearly sales figures of USD 85.97 billion.
For 12 years BASF used to be the biggest chemical company in the world but was passed away in chemical sales by DuPont in 2018. Before BASF’s 12-year run as the biggest chemical company in the world, Dow Chemicals used to be the largest. BASF chemical company is a German chemical company and with sales figures of USD 74.06 billion generated previous year.
Ranking 3rd on the list of the top 10 biggest chemical companies in the world is Sinopec, a Chinese oil and gas enterprise based in Beijing, China. Sinopec saw a 22% increase in sales last year, the biggest increase among the top chemical companies on this list. In addition to oil and gas search, Sinopec is mainly known for its production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products.
Last year, Sinopec generated sales of USD 69.21 billion.
SABIC is 4th on this list of the top 10 biggest chemical companies in the world by sales. SABIC is a Saudi multinational chemical manufacturing company that is a subsidiary of Saudi Aramco. SABIC is familiar for its petrochemicals, chemicals, industrial polymers, fertilizers.
Ranking 5th on this list of the top 10 biggest chemical companies in the world is Ineos. A UK-based multinational chemical company headquartered in London. Ineos is accommodated of 20 business units, all operating separately. Last year Ineos yield sales of USD 36.97 billion.
Formosa Plastics Corp
Ranking 6th on this list of the largest chemical companies is Formosa Plastics Corp, a Taiwanese plastics company founded in Taiwan. It is familiar primarily for producing polyvinyl chloride resins and other plastic products. Formosa generated USD 36.89 billion in sales the previous year.
ExxonMobil Chemical ranks number 7th in the world by sales among the biggest chemical companies. In spite of ranking 7trh in sales, ExxonMobil Chemical is the largest chemical company in the world by market cap at a valuation of USD 308.91 billion previous year.
LyondellBasell ranks 8th on this list of the biggest chemical companies in the world with sales figures of USD 30.78 billion produced previous year. LyondellBasell is a familiar multinational chemical company that generates ethylene, propylene, polyolefins, and oxyfuels.
Ranking 9th on this list of the top 10 biggest chemical companies in the world is Mitsubishi Chemical. Headquartered in Tokyo, Japan, the company saw a sales grow by 7.1 percent in previous year and sales reaching USD 28.74 billion.
Ranking 10th on this list of the top 10 biggest chemical companies in the world is LG Chemical, the largest Korean chemical company in the world. LG Chem generated annual sales of USD 25.63 billion in the previous year.
Now, the following is a list of the biggest chemical companies ranked by Market Cap:
The Linde Group
Air Products & Chemicals
About American Chemical Society (ACS)
As a non-profit scientific institution with more than 140 years’ experience, American chemical society are a champion for chemistry,its practitioners and its worldwide community of members.
Established in 1876 and chartered by the U.S. Congress, ACS are one of the world’s biggest scientific institution with more than 150,000 members in 140+ countries.
ACS mission is to progress the broader chemistry enterprise and its practitioners for the benefit of Earth and its people. ACS vision is to enhance people’s lives through the metamorphose power of chemistry.
ACS are recognized as a leading publisher of authoritative scientific information. Its 60+ peer-reviewed journals are ranked the “most-trusted, most-cited and most-read.”
ACS authorize its members to progress chemistry, develop their career potential, spread their networks, motivate future generations, collaborate worldwide and create communities that give scientific solutions.
American chemical society give wide networks that facilitate connections and open doors in a way no other professional organization can match.
What ACS Value?
Passion for chemistry and global chemistry enterprise
- Focus on members
- Professionalism,safety and ethics
Diversity, inclusion and respect
What ACS Advocate for?
American chemical society work to improve public policies that progress the chemistry enterprise and its practitioners. In the U.S., ACS work in these four policy areas:
Innovations through research and technology
Science education and workforce
Sustainability and the environment
Science in public policy
How ACS Support, Advance & Empower?
American chemical society give information, education, career services, professional development and engagement programs to help its members.
ACS also support teaching and learning for students of all ages through grants and scholarships. Besides its encourage investments in science, technology, engineering and math education, research and innovation.
Launch a Chemical Business
how to do oil and gas chemical business in the USA? Keep in mind the following points when you do oil and gas chemical business in the USA.
The Chemical business is largely market-driven. In addition to production activities, it is also important to consider marketing, distribution, intellectual property, and other capabilities that distinguish industry segments.
Rather than statistical classifications, the industry is typically viewed as having four main segments: basic chemicals, specialty chemicals, agricultural chemicals,
and consumer products,each with its own structure, growth dynamics, markets, developments, and issues.
Nanotechnology is used across segments, and the consumer market continues to broaden. Increasingly, the business of chemistry provides more knowledge intensive solutions for human wants and needs.
The typical cost structures over the business cycle differ between the major segments of the business of chemistry. Basic chemicals are dominated by costs for feedstock and materials: combined, they can amount to more than 65% of total costs. On the other hand, consumer products spend a higher percentage on advertising, research and development (R&D), and other sales, general, and administrative (SG&A) expenditures.
Profit margins for consumer products tend to be higher than specialties, which are higher than basic chemicals. In the case of basic chemicals, prices are highly correlated with capacity utilization levels and feedstock costs, resulting in low profit margins.
Distribution of basic chemicals is largely by rail and water to a limited number of large-volume customers.
Chemical Business Ideas
The chemical industry is one of the biggest industrial sectors worldwide. In USA, statistics show the chemical industry itself contributes 5% of GDP. Individuals looking forward to tapping into this industry with lower investment can get into either in distribution or manufacturing .
There are numerous business opportunities in the chemical industry that can be launched with low startup investment. Find below, a list of small scale chemical businesses to launch with little money.
Top 15 highly Profitable Chemical Business Ideas :
1. Hand Sanitizer Making
Commercial hand sanitizer making business needs suitable skill about the mixing and formulation process. The process is very easy. An entrepreneur can launch this venture with tolerable capital investment.
2.Liquid Soap Making
The liquid soap-making business includes a broad range of processing, packaging and marketing operations. The business also needs extensive market research and marketing strategy. Liquid soap is a consumable item and the demand for its increasing both the rural areas and urban areas. Total yearly soap sale by branded companies is assumed at 14000 tonnes, when a total soap market is considered to be about 126000 tones.
3.Neem Oil Extraction
Neem oil extraction business opportunity needs proper knowledge about the oil extraction process. There are different techniques used in the industrial and commercial extraction of neem oil. Neem oil extraction using the dissolvent alike alcohol, ether, and hydrocarbons is the most used process in the industry.
The demand for nylon products is very extensive worldwide and it needs on a daily basis. To identify the correct product and identify the market is the most important issues in getting success in nylon production.
5. Botanical Pesticide Manufacturing
Due to the prohibitive cost of artificial pesticides and the problems of environmental pollution caused by the continuous use of these chemicals, there is a new interest in the use of botanical for crop protection.
With accurate knowledge about the formulation process, an individual can launch this business with tolerable capital investment.
6.Herbal Shampoo Manufacturing
The herbal shampoo is a hair care product and the market potential is enhancing day-by-day. Having right knowledge about the technical process any person can start this business on a small-scale basis, with tolerable capital investment.
7.Dish Wash Bar – Liquid Making
Dish wash bar – liquid is a customers viable product. The demand is growing globally. The manufacturing process is very easy. Major licensing is not required. Anyone can launch this venture with accurate knowledge about the production process.
8. Rubberband Manufacturing
An entrepreneur can launch a rubber band manufacturing project at a home location with tolerable capital investment. Rubber Band is a very necessary thing in our daily life and it seems that its demand will lie unchanged in the future . Rubberband manufacturing is a technically workable and financially durable project for small business entrepreneurs.
9. Herbal Soap Making
The herbal industry is increasing worldwide. Knowledge among the people about the positive thing of using herbal products is the main reason behind it. The herbal soap making process is easy and it needs simple few raw materials. Anyone can start this venture small-scale basis with tolerable capital investment.
10. Detergent Powder Manufacturing
Detergent powders are also known as artificial detergent and these are the surfactant. Anyone can launch this project with a little startup capital investment. There are several varieties of detergent available in the market depending upon the several percentage of active elements and other components. The process of manufacturing is very easy and it includes simply mixing several components in the right formula.
11. Glues making chemical business
A thriving and profitable business venture in the chemical industry that an entrepreneur who is looking towards starting a business should consider starting is to go into the production of adhesives and sealants (Glues making chemical business).
There is a wide market for glues, gums, and paste. As long as you are capable of favourably finish with another manufacturer of identical products.
This type of business venture is a business venture that can be launched on a small scale with little start-up capital.
11. Toothpaste and Mouthwash Business
Toothpaste and mouthwash are essential products that are used in every household on a daily basis. In short, there is a large market for toothpaste and mouthwash.
It is certain to classify this type of business under the chemical industry because of a huge percentage of the raw materials that are used in the production of toothpaste and mouthwash.
12. Inks Production Business
The production of inks is yet another highly profitable business in the chemical industry. Inks are used in printing either in cartridges or in printing. Anyone can launch this venture with accurate knowledge about the production process.
13. Fertilizer Production Company
Organic and non – organic fertilizers are required in the agriculture sector and they are all products under the chemical industry. There is actually a huge market for this type of business. There has hardly any country where agriculture is not encouraged.
If you are considering launching a business in the chemical industry, you can consider going into organic and non – organic fertilizer production. The simple ways of making it big in fertilizer manufacturing business is to win over the government of your country. Almost all countries, the government is always the largest customer of fertilizers products.
14. Production of paints
Paints are another product in the chemical industry. There is a big market for paints only because paints are used in painting houses, road pavements, metal products and loads of other products. If you are looking towards initiating a business in the chemical industry, one of your alternatives is to go into the production of paints.
The reality is that an entrepreneur who desires launching his or her paint production company can choose to initiate either on a small scale production level or on a large scale production level.
15. Production of Salt
It is certain to categorize the production of salt (sodium chloride) under the chemical industry. So, if you are looking towards launching a business in the chemical industry, a business that needs small start – up capital and raw materials can readily be available, then you should choose the production of salt. It is a highly profitable business.
The chemical business is a capital-intensive industry. There are many factors that contribute to high capital costs:
The large plant capacities are often needed to obtain economies of scale in producing chemicals.
The intricate nature of the equipment and processes used.
The high degree of process automation.
The large amounts of equipment needed, technology requirements and depreciation of process plants.
Chemical Business Investment
Chemical Business Investment in capital in new plants and equipment (P&E), also referred to as capital spending is included of two basic components : structures and equipment.
The equipment category is determined primarily of traditional process equipment included fabricated metal products, general industrial machinery, electrical
transmission, distribution, and industrial apparatus.
A large portion of equipment investment in the chemical business is for instrumentation, computers, and related automation technologies.
Investment in structures is often for industrial buildings and related structures, but also comprises some minor
spending for office buildings. Equipment is notably more important than structure to long-term growth potential for the manufacturing sector and the chemical business. Because the equipment is directly related to the production process and it embodies the latest in process technologies.
The chemical business has systematically been one of the largest U.S. private-sector investors in new plants and equipment.
Some differences in P&E investment remain among companies on the basis of their main business focus. Basic chemical companies generally distribute the largest share of their sales for P&E spending. Specialty chemical companies follow with industrial gases as the most capital-intensive segment. On the other hand, consumer product companies distribute less to P&E spending.
License and Permit
In most states, chemical businesses need licenses and/or permits to operate and comply with government decrees for safety, soundness and tax.
If you are thinking about starting a chemical business, you may need to obtain a number of licenses and permits from federal, state, and local government.
You may collect chemical business operation license from the city in which your business will operate, or from the local division.
Federal employer identification number (EIN), also called a tax identification number required for getting chemical business license in USA. The business may also need to acquire a similar tax identification number from the department of revenue or taxation.
Zoning and land use permits also required, especially for new manufacturing chemical businesses. A chemical business in USA needs sales tax license for the selling of almost all chemical products and services.
Some chemical business also requires special state-issued business license or permits.
Chemical Business Legislation
The regulation of chemicals is the legislative motive of a difference of national laws or international initiatives include agreements, conventions etc. These international initiatives identify the policy of further regulations to be performed locally as well as emission limits. Once and again, regulatory agencies oversee the enforcement of these laws.
Strategic Approach to International Chemicals Management (SAICM) – This initiative was accepted at the International Conference on Chemicals Management (ICCM), which organized from 4–6 February 2006 in Dubai to gather governments and intergovernmental and non-governmental organizations.
It identifies a policy framework to foster the sound global management of chemicals. This initiative includes risk assessments of chemicals and combined labeling up to tackling old and stockpiled products. Are covered provisions for national centres purposed at assistant in the developing world, train staff in chemical safty. SAICM is a willful agreement.
A second International Conference on Chemicals Management -ICCM2- adopted in May 2009 in Geneva organized in order to improve synergies and cost-effectiveness and to enhance SAICM’s multi-sectorial nature.
Chemical Business Legislation in the USA
The Environmental Protection Agency (EPA) of the US published in 2009 that the chemicals management laws would be strengthened and that it would launch a broad approach to improve the chemicals management program, including:
1. New regulatory risk management actions.
2. Development of chemical action plans, which will target the risk management attempts on chemicals of concern.
3. Requiring information needed to understand chemical risks.
4. Enhancing public access to information about chemicals
5. Employing stakeholders in prioritizing chemicals for future risk management action.
In USA chemicals are regulated under various laws including the Toxic Substances Control Act (TSCA).
What does TSCA govern?
TSCA governs chemicals used commercially in the USA. That said, TSCA does not govern pesticides, chemicals used in cosmetics and personal care products, food, food packaging, or pharmaceuticals. Some chemicals, however, have many uses and so may be governed concurrently by TSCA and other federal laws.
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