SelectUSA Chemicals Industry
Industry Overview
The chemical industry is one of the United States’ largest manufacturing industries, serving both a sizable domestic market and an expanding global market. It is also one of the top exporting sectors of U.S. manufacturing. The U.S. exported over $494 billion worth of chemicals in 2022. As a leader in chemical production, over 13% of the world’s chemicals come from the U.S.
The industry’s 14,000 establishments produce over 70,000 products. In mid-2024, the U.S. chemical manufacturing industry directly employed over 902,300 employees. Total FDI in the industry was $766.7 billion in 2023. Majority foreign-owned firms contributed $60.2 billion to U.S. exports in 2022, and spent $28.2 billion on R&D. With this R&D spending, and a record of strong enforcement of intellectual property rights, the chemical industry accounts for a significant portion of patents granted in the United States.
Strong product identification and quality, access to low-cost natural gas, a highly educated workforce, world-class research centers, protection for intellectual property, and a robust regulatory system make the United States a competitive home for chemical firms from across the globe.
This industry group comprises establishments primarily engaged in one or more of the following: manufacturing nitrogenous or phosphatic fertilizer materials; manufacturing fertilizers from sewage or animal waste; manufacturing nitrogenous or phosphatic materials and mixing with other ingredients into fertilizers; mixing ingredients made elsewhere into fertilizers; and formulating and preparing pesticides and other agricultural chemicals. As of 2022, there were 1,049 establishments in this industry and, as of mid-2024, there are over 40,000 workers in the industry. The FDI position in 2023 was $15.4 billion.
These include organic and inorganic chemicals, plastic resins, dyes and pigments. Plastic resins, in particular, have experienced significant growth as a replacement for traditional materials in the automotive, construction, and packaging end-use markets. As of 2022, there were 2,645 establishments in this subsector. Foreign direct investment totaled $108.3 billion in 2023 and supported 102,700 jobs in 2022. As of mid-2024, there were over 159,000 workers employed in this industry.
These include diagnostics, prescription drugs, vaccines, vitamins, and over-the-counter drugs for human and veterinary applications. This subsector also includes biotechnology products. Strategic investment in companies, facilities, and research and development is especially important for this subsector. In 2023, foreign direct investment in this sector totaled $503.4 billion.
As of mid-2024, 345,000 workers were employed in the pharmaceutical and medicine manufacturing sector. In 2022, foreign direct investment supported 217,900 jobs in this industry.
These include soaps, detergents, and cleaners, as well as toiletries and cosmetics. While consumer products are an established segment of the industry, technological innovation and product development are important due to short product life cycles. Foreign direct investment totaled $91.9 billion in 2023 and supported 38,000 jobs in 2022. As of 2022, there were 2,558 establishments in this industry. As of mid-2024, nearly 119,000 workers are employed in this industry.
These include adhesives and sealants, water treatment chemicals, plastic additives, catalysts and coatings. These chemicals are performance-oriented and typically include customer/technical servicing as an aspect of their sales. As of 2022, there were 1,681 establishments in this industry. The total FDI in the paints, coatings, and adhesives industry was $7.6 billion in 2023. In 2022, 11,900 jobs were supported by FDI. As of mid-2024, an estimated 62,000 workers are employed in the paints, coating, and adhesives industry.
Explore the impact of foreign direct investment on U.S. jobs, exports, and innovation in the chemicals industry.
The Investor Guide is a high-level view of everything from taxes to immigration and workforce to business structures.
SelectUSA has created several dashboards to help analyze key FDI data from a variety of sources.
