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The North America Chemicals Sectors : A Company and Industry Analysis (December 2004)

  • ID: 656056
  • Report
  • December 2004
  • Region: America, North America, United States
  • 32 pages
  • Mergent
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This report examines the chemicals sectors in the United States and Canada, focusing on the manufacturing and distribution segments of the industry
Current Environment - Key Points
- Sales of chemicals in the US and Canada have picked up, earnings at most companies have risen and there is a tight supply and demand balance in petrochemicals
- Many chemical companies have gained the upper hand in pricing their goods due to restrained capacity and rising demand
As a result, North America's chemical industry is seeing a surge in profits
- Many US chemical companies are making management shifts and are moving operations abroad due to the increasing costs of running their businesses in the US
- Higher oil prices could shrink growth by slowing down the economy and making goods more expensive
As a result, demand for chemicals that are components in particular products, from packaging to automobiles, may fall

Industry Profile - Key Points
- Revolutionary changes in production practices and the tightening of environmental regulations have led to the demise of some basic chemical products and fostered new chemicals and materials with better environmental and performance characteristics
- Many US chemical companies are employing hedging programs to deal with the fluctuations of energy rates
- Following the 9/11 attacks, there have been concerns that chemical plants in the US will be targeted by terrorist attacks
ACC members have established a mandatory, comprehensive security program called the Responsible Security Code
- Canada is developing into a competitive location for chemical investments
Chemical feedstock, energy and labor cost less in Canada
Canada also has the most generous R&D tax regime in the G7
- The Ratification of the Kyoto Protocol could hurt Canada's competitive position with the US, which has not ratified the treaty, by adding costs that US facilities do not have
Market Trends and Outlook - Key Points
- According to ACC, one in every ten chemical-related jobs has vanished in the past five years, amounting to approximately 100,000 workers
That number would be worse if not for the surge in the pharmaceuticals industry
Also, many chemical plants in the US have been closed down due to outsourcing
However, the expertise and creativity of US chemical engineers remains a great competitive strength, so much of the cutting-edge work will remain in the US
- US specialty chemicals have been hit by many of the same pressures as commodities
Imports of specialties are growing rapidly, from 11% in 2003 to 34% in 2004
- Over the next five to ten years the US will reach a critical point in its supply and demand of gas due to a lack of significant gas discoveries, a steady increase of electric power demand and the rapid ageing of most major fields in the US
- The outlook for hiring opportunities in Canada's chemical industry is promising
It is estimated that 13,000 jobs will need filling over the next ten years because of retirements
- More and more chemical companies in Canada are venturing into e-commerce and virtual marketplaces to increase profitability
These also have the ability to lower chemical prices and make chemical companies more competitive
- ACC forecasts that global recovery for the chemical industry will continue in 2005
Globally, it forecasts a 5% gain in chemical production in 2004, followed by a 4.3% improvement in 2005

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Current Environment - US
- Sector Overview
- Sector Performance
- Leading Players
- Mergers, Acquisitions and Joint
Ventures
Current Environment - Canada
- Sector Overview
- Sector Performance
- Leading Players
- Joint Ventures and
Acquisitions
Industry Profile - US
- Industry Size and Value
- Research and Development
- Policy and Regulatory
Environment
Industry Profile - Canada
- Investing in Canada
- Global Influence
Market Trends & Outlook - US

- Employment in a Flux
- Trouble on the Horizon
- China's Impact on Specialty
Chemicals
- Possible US Gas Supply Crisis
- Effects of Rising Chemical
Prices
- Market Outlook
Market Trends & Outlook -
Canada
- Chemicals Sector Demands High
Skill Levels
- Growing Popularity of E-
Commerce
- Market Outlook
Currency Conversion Table
The Scope of this Report
Comparative Data
Key References
Sales Contacts

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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