WHY IS CHEMICAL INDUSTRY CONSIDERED AS BASIC INDUSTRY
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The chemical industry is more diverse than virtually any other industry in the United States. Harnessing basic ingredients, the industry1 produces a plethora of products not usually seen or used by consumers but that are essential components of, or are required to manufacture, practically every consumer and industrial product (Box 5-1). Many chemical industry products are intermediates, and chemical company customers are often other chemical companies. Several companies in this industry are also at the forefront of emerging biotechnology industries.
According to the American Chemical Society (1998), the industry's more than 70,000 different registered chemical products are developed, manufactured, and marketed by more than 9,000 companies.2 Of these firms, 40 account for roughly half the industry's output on a mass basis. The chemical industry is the third-largest manufacturing sector in the nation, representing approximately 10 percent of all U.S. manufacturing and boasting one of the largest trade surpluses
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Eight standard industrial classification codes are used by the U.S. Department of Commerce to categorize chemical companies. The categories are industrial inorganic chemicals; plastics, materials, and synthetics; drugs; soap, cleaners, and toilet goods; paints and allied products; industrial organic chemicals; agricultural chemicals; and miscellaneous chemical products.
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Total revenues of the U.S. chemical industry in 1997 were about $400 billion, or 1.9 percent of total gross domestic product. Capital investment is approximately $35 billion a year, and research and development spending is approximately $18.3 billion per year (Chemical Manufacturers Association, 1995).
According to the American Chemical Society (1998), the industry's more than 70,000 different registered chemical products are developed, manufactured, and marketed by more than 9,000 companies.2 Of these firms, 40 account for roughly half the industry's output on a mass basis. The chemical industry is the third-largest manufacturing sector in the nation, representing approximately 10 percent of all U.S. manufacturing and boasting one of the largest trade surpluses
1
Eight standard industrial classification codes are used by the U.S. Department of Commerce to categorize chemical companies. The categories are industrial inorganic chemicals; plastics, materials, and synthetics; drugs; soap, cleaners, and toilet goods; paints and allied products; industrial organic chemicals; agricultural chemicals; and miscellaneous chemical products.
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Total revenues of the U.S. chemical industry in 1997 were about $400 billion, or 1.9 percent of total gross domestic product. Capital investment is approximately $35 billion a year, and research and development spending is approximately $18.3 billion per year (Chemical Manufacturers Association, 1995).
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