2014-04-16 11:59:01 - Petrochemical Manufacturing in the US - Industry Market Research Report - a new market research report on companiesandmarkets.com
The United States Petrochemical Manufacturing market plays an important role in the US economy. Many of the goods produced by petrochemical manufacturers are the fundamental building blocks used to produce a variety of consumer and industrial products like detergents and pharmaceuticals. While petrochemicals are essential to many kinds of chemical manufacturing, the industry is still susceptible to economic shifts. Over the five years to 2013, revenue is expected to decline at an average annual rate of 0.8% to $83.4 billion. However, this decline has not been constant. Although the recession caused this industry to suffer in 2008 and 2009, revenue has been on the rise since 2010.
During 2008 and 2009, key buying industries reduced their demand for petrochemicals. As downstream
industries, such as construction and packaging, bought fewer plastics and chemicals, the industry lowered production, reducing petrochemical revenue. The industry also endured changing raw-material costs, which affected price structures. Industry firms had to adjust to shifting production intensity and handle excess capacity.
However, in 2013, revenue is anticipated to grow as buying industries increase their manufacturing levels and buy more petrochemicals. Revenue is expected to increase 3.2% over 2013 because of higher demand, higher prices and stabilized capacity.
From 2013 to 2018, industry revenue is projected to grow at an annualized rate of 3.7% to $99.9 billion. Unlike the previous five years, revenue growth will be more stable. Demand from key buying industries will remain relatively constant, as will raw-material costs, which will cause revenue to stabilize. That said, increasing regulation could hinder the industry by increasing operating costs. To offset rising costs, industry companies could likely raise prices. If the industry raises prices too significantly, however, buyers could reduce their purchases, hurting revenue.
Some firms are expected to offshore production to mitigate costs; others will find it difficult to wind down capacity, choosing to sell off establishments too costly to continue operating. While revenue is anticipated to increase over the next five years, the industry will likely consolidate. High costs will drive some players out of the industry; others will make acquisitions to meet demand levels. Over the five years to 2018, the number of firms will decrease at an estimated average annual rate of 3.1% to 29.
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