Friday, 21 June 2013

IBISWorld Report Updated , Chemical Product Manufacturing in the US

Los Angeles, CA (PRWEB) June 16, 2013- Chemical Product Manufacturing in the US Industry Market Research Report from IBISWorld has Been Updated 

As with other chemical industries, chemical product manufacturers' revenue has dropped over the past five years as key buying industries have shifted their purchasing levels to adapt to changing downstream demand. From 2008 to 2013, industry revenue is expected to decline at an annualized rate of 1.0% to $40.5 billion, including estimated marginal growth of 0.1% in 2013. Chemical manufacturers rely heavily on the manufacturing sector for business, especially from the automotive, appliance and construction industries. When manufacturing production levels decreased during the recession, industry demand took a hit.

According to IBISWorld Industry analyst Radia Amari, “although the economy is recovering, demand has not returned to pre-recessionary levels”. Meanwhile, demand for another key industry product, photographic materials, has been waning since even before the downturn. This product segment has been gradually shrinking because photographers are increasingly switching from traditional film to digital photography. This product segment's low demand has continually cut into overall industry revenue.

One trend that has helped stave off further declines has been an overall rise in export demand, as buying industries become more globalized and more foreign companies begin to demand chemical products. Nonetheless, sluggish domestic growth has offset revenue gained from exports, pushing many firms to consolidate. Over the five years to 2013, the number of companies in the Chemical Product Manufacturing industry has fallen. Rising material costs have only accelerated this trend making it tougher for firms to remain profitable. “From 2013 to 2018, industry revenue is expected to rebound”, says Amari. Manufacturing levels are forecast to rise in industries like automobile part and construction material manufacturing, boosting demand for chemicals needed in production. Still, weak demand from the photography industry will continue to dampen industry revenue.

Market share concentration for the Chemical Product Manufacturing industry is low. This reflects the fragmented nature of the industry and the diverse range of products produced by a large number of small players. The level of concentration may vary by product segment. For example, global heavyweights Eastman Kodak and Fujifilm dominate the photographic film segment. There are no major players in the industry; however, the three largest companies are Eastman Kodak, Ferro Corporation and Fujifilm USA.
For more information, visit IBISWorld’s Chemical Product Manufacturing in the US industry report page.

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