Chemical manufacturers are upbeat about further growth and strength due in large part to sales of newly developed products, according to information from the American Chemistry Council (ACC).
Net operating income for the typical chemical company is projected to expand by 24.8% this year, spending on research and development is expected to increase by nearly 3% of total sales in 2005 and 2006, and investment in plants and equipment is anticipated to rise 11.8% in 2005 and 10.1% in 2006.
Large basic chemical companies expect employment to decline in 2005 by 1.7% as downsizing and outsourcing continue. However, smaller companies indicated that they expect their employment to increase by 1.2% in 2005, while specialty chemical companies expect flat employment (0.1% increase this year).