The U.S. chemical wholesale industry, with annual revenues of approximately $220 billion, is projected to grow at a rate of 4% over the next four years. Oil and gas production is also expected to increase, therefore, creating opportunities both upstream (extracting and processing chemicals) and downstream (plastics, paints, etc.) for chemical distributors. This hot industry is on the radar of many economic development organizations for their business attraction targets.
According to Hoovers First Research, here are three trends we will see within the chemical wholesale industry as it continues to expand:
Increased Waste Recycling
Disposal costs can be very expensive, leaving customers the option to recycle waste through a distributor. The recovered product can often be used for other applications, reducing disposal and incineration needs, and possibly earning the distributor tax benefits.
Increased Need for Chemical Security
Chemical warfare and terrorism are rising concerns in both the U.S. and abroad. Heightened security at chemical facilities, emergency response strategies, and further regulations on the importing and handling of chemicals will continue.
Increased Concern for the Environment
Environmentalism is a big concern as chemical disposal can contaminate soil and groundwater. Expect more complex regulations to address disposal issues, and increased waste management programs.
Source: Hoovers First Research