Although the chemical industry’s output is expected to grow, employment in the chemicals manufacturing industry, excluding pharmaceuticals and medicine, is projected to decline by about 17 percent over the 2002-12 period, compared with 16-percent growth expected for the entire economy. The projected decline in chemical manufacturing employment can be attributed to trends affecting the U.S. and global economies. There are several factors that will influence chemical industry employment, such as more efficient production processes and increased plant automation, the state of the national and world economy, company mergers and consolidation, increased foreign competition, the shifting of production activities to foreign countries, and environmental health and safety concerns and legislation. Another trend in the chemical industry is the rising demand for specialty chemicals. Chemical companies are finding that, in order to remain competitive, they must differentiate their products and produce specialty chemicals, such as advanced polymers and plastics designed for customer-specific uses-for example, a durable body panel on an automobile.
Improvements in production technology have reduced the need for workers in production; installation, maintenance, and repair; and material-moving occupations, which account for large proportions of jobs in the chemical industry. The application of computerized controls in standard production, and the growing manufacture of specialty chemicals requiring precise, computer-controlled production methods, will reduce the need for workers to monitor or directly operate equipment. Although production facilities will be easier to run with the increased use of computers, the new production methods will require workers with a better understanding of the use of the systems.
Foreign competition has been intensifying in most industries, and the chemical industry is no exception. The increase in international trade and rapidly expanding foreign production capabilities should intensify competition. Pressure to reduce costs and streamline production will result in mergers and consolidations of companies both within the United States and abroad. Mergers and consolidations are allowing chemical companies to increase profits by eliminating duplicate departments and shifting operations to locations in which costs are lowest. U.S. companies are expected to move some production activities to developing countries-those in East Asia and Latin America, for example-to take advantage of rapidly expanding markets.
The chemical industry invests billions of dollars yearly in technology to reduce pollution and clean up existing waste sites. Concerns about chemicals and the environment may spur producers to create chemicals with byproducts that are fewer or less dangerous, or that can be recycled or disposed of cleanly.
The factors affecting employment in the chemical manufacturing industry will impact different segments of the industry to varying degrees. The only segment projected to add jobs is the cleaning preparations, including soap, cleaning compounds, and toilet preparations segment, with an increase of about 3,200 jobs. The other chemical products segment is projected to lose about 33,000 jobs; the basic chemical manufacturing segment, about 31,000 jobs; and the synthetic materials segment, about 26,000 jobs.