By Nick Gilbert
According to a report published by IBISWorld, the Inorganic Chemical Manufacturing industry is expected to grow in 2012. In spite of the growing revenue, the manufacturing industry has undergone changing demands when the recession crippled the economy. As buyer markets are being stabilized and demand for their products are being increased, request for inorganic chemicals is also predicted to rise in 2012.
The revenue of Inorganic Chemical Manufacturing industry is expected to fall at an average rate of 0.4% to $31.6 billion annually over five years to 2012, but this drop has not been steady. The industry dipped during the recession following a 17.3% rise in revenue in 2007. Downstream customers, including paper and pulp producers and construction manufacturers, reduced production by lessening inorganic chemical purchases. When the economy started to recover in 2010, revenue rebounded and downstream consumers expanded their manufacturing output. In 2012, revenue is predicted to increase as industry selling prices rise, and higher selling prices will help increase industry profit.
In five years from now, the industry, led by improved carbon black and chlorine demand, is expected to increase. But, infiltrating imports are expected to offset high revenue boom as Chinese imports are set in motion to cause domestic companies to lose market share. As industry revenue is predicted to grow, inorganic chemical manufacturers are planned to consolidate. Over the five years to 2017, firm numbers are predicted to decrease. Since each firm fixes on a few particular products, the industry has a flat level of concentration. Medium hindrances to entry will continue to help low market concentration over the next five years.
IBISWorld has added the Inorganic Chemical Manufacturing in the US industry article to its report collection.