Akzo Nobel Competition
Now Viewing Akzo Nobel's competition in: Chemical Manufacturing - Industrial
Recent Developments
Chemicals Production Mixed - US production of various industrial chemicals was mixed in June 2008 compared to a year earlier. Production of industrial gas and basic inorganic chemicals increased 21 percent and 3 percent, respectively. Organic chemical production declined more than 4 percent.
Industrial Chemical Exports Increase - US exports of most types of industrial chemicals rose in the first six months of 2008 compared to the same period in 2007. Industrial gas exports increased nearly 22 percent, led by major US trading partners Japan, Canada, and Mexico; exports of basic inorganic chemicals rose 21 percent. Exports of basic organic chemicals, petrochemicals, and basic chemicals all experienced growth of over 14 percent. US chemicals exports are likely improving due to a weak dollar.
Ethanol Debate Continues - The debate over the increase in ethanol production continued recently at a special Senate Agricultural Committee hearing at the University of Nebraska. Ethanol supporters claim that ethanol burns cleaner than fossil fuels, reducing pollution, while lessening US dependence on foreign oil. Detractors, chiefly livestock producers, say that corn-derived ethanol is diverting corn crops away from food and animal feed production, which is driving higher food and commodity prices.
Competitive Landscape
Demand depends on the overall strength of the US economy, because most industrial chemicals are used in the manufacture of more-complicated products like fibers, plastics, paints, and paper. The profitability of individual companies is closely linked to efficient operations, because most products are commodities. Big producers have large economies of scale in production, which is why some chemicals are made by just a handful of companies. Small companies can compete effectively by making specialized or highly-purified products. The industry is highly automated: average annual revenue per employee is over $600,000.
Full Industry Overview For Chemical Manufacturing - Industrial
Chemical Manufacturing - Industrial Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US petrochemicals, industrial gas, synthetic dyes and pigments, and other basic chemicals is forecast to grow at an annual compounded rate of 3.9 percent between 2008 and 2013.
Industrial Chemicals Manufacturing Growth Volatile
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Linked to industrial activity
- Large economies of scale in production
- Risk: Slow economy cuts demand
Industries Where Akzo Nobel Competes
- Chemicals
- Paints, Coatings & Other Finishing Product Manufacturing
- Basic and Intermediate Chemical & Petrochemical Manufacturing
- Specialty Chemical Manufacturing
