Despite facing global headwinds, the American chemical industry expanded at a healthy 2.0% growth rate in 2014, and is expected to reach a 3.7% gain in output in 2015, before hitting 3.9% in 2016, according to the Year End 2014 Chemical Industry Situation and Outlook, published today by the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com). The report’s consensus is that U.S. chemical output will continue to expand well into the second half of the decade, exceeding that of the overall U.S. economy. Other key highlights of the Situation and Outlook report include the following:
- Light vehicle sales ($3,500 of chemistry per unit) grew 5.2%
- Housing starts ($15,000 of chemistry per start) grew 7.5%
- Basic chemicals were hard hit from recessions in Japan and Brazil
- During second half of the decade, U.S. chemistry growth is expected to expand at a pace of more than 4% per year on average, exceeding that of the overall U.S. economy
- By 2019, American chemistry sales will exceed $1 trillion
- Despite competitive position American chemistry owes to a favorable oil-to-gas price ratio, trouble in the economies of major trading partners will delay another trade surplus until 2017
- A trade surplus of $77 billion is expected by 2019
- More than 215 new chemical production projects valued at over $135 billion have been announced in the U.S., helping capital spending to surge nearly 12% in 2014 to more than $33 billion.
“We’re in the midst of an historic expansion, and the U.S. remains the most attractive place in the world to invest in chemical manufacturing,” said ACC President and CEO Cal Dooley. “Looking forward, it’s critical that the new Congress pursues sound policies that ensure America stays ‘open for business’ to manufacturing,” Dooley said.