Chemical Wholesaling in the US
As a key intermediary between chemical manufacturers and downstream industry, the Chemical Wholesaling industry plays an important role in the chemical supply chain. The construction and manufacturing sectors are the key customers for chemical wholesalers and, as a result, their production levels largely determine industry demand. As overall conditions have improved in the US economy, downstream demand has grown, boosting industry production over the five years to 2018. Furthermore, consumer spending has also increased, leading many manufacturing-related industries to increase production and purchase more chemicals. However, a drastic decrease in crude oil prices beginning in late 2014 led to operators reducing top-line selling prices of industry products. Moving forward, the industry is projected to experience strong demand from the manufacturing and construction sectors, which, in conjunction with recovering oil prices, will drive up revenue. Industry revenue is forecast to grow over the five years to 2023. This growth is expected to encourage more companies to enter the industry, although some consolidation is expected, as industry players can experience greater returns of scale by spreading out costs such as regulatory compliance.
This industry wholesales chemicals and related products, including compressed gas, chemical additives and synthetic rubber, to the manufacturing, construction and mining industries. This industry does not wholesale agricultural or medicinal chemicals, paints or varnishes, fireworks or plastics materials.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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