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Economic Analysis for the U. S. Chemicals Materials and Foods
Frost & Sullivan, Nov 2006, Pages: 31
The U.S. chemicals and materials industry is the largest in the world, and along with Japan and Germany, it accounts for more than half of the global production. This industry contributes 1.9 percent to the country’s gross domestic product (GDP), making it the mainstay of the economy. The food and beverages industry is one of the biggest in the U.S. manufacturing sector and ranks fourth among all the industries in the country. This excellent ranking can be attributed to the growing consumer awareness on health and environment issues and the effective marketing and promotional efforts of the retail sector. General economic policies have had a positive bearing on the chemicals, materials, and food (CMF) industry and industry-specific policies have largely facilitated its development. Nevertheless, with greater globalization, Asian countries such as China and India are expected to provide stiff competition to the United States.
Despite being the largest economy in the world, the United States has continued to show growth potential and registered a growth rate of 3.5 percent in 2005. However, the current boom in the housing market and rising oil prices are increasing inflation. To take advantage of the economies of scale, chemicals and materials companies set up units close to end-user markets or in regions rich with natural resources. The industry has grown with an increase in prices, sales, and profits. Since food and beverages is a major industry in the United States, it is less vulnerable to economic changes. The cosmopolitan culture in the country also greatly aids the growth of this industry.
Frost & Sullivan’s Chemicals, Materials, and Foods Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its CMF industry. Besides enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct in-depth micro research.
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