THE BUSINESS OF CHEMISTRY: VITAL BUT INVISIBLE
November, 2024
THE BUSINESS OF CHEMISTRY: VITAL BUT INVISIBLE
by Ted Grabowski, TCC Chairman and President of Texas Brine Company
[Adapted from comments made during the Industrial Procurement Forum, sponsored by the Economic Alliance of Houston, held on November 5, 2024.]
The role of the chemical industry is nothing short of essential — not only to our region, our state, and our country but also to the world. Situated along the Gulf Coast, we are one of the world’s largest hubs for chemical manufacturing. Our region’s production and exports help power our economy and contribute to global advancement while supporting critical initiatives worldwide.
For example, studies show that the business of chemistry accounts for approximately 10 percent of all U.S. exports while investing more than $30 billion in capital in 2023 alone. This large footprint helps drive our Gulf Coast economy.
One of the most tangible impacts of our industry is employment.
• Based on recent dues data, the business of chemistry creates at least 53,500 direct jobs among TCC member companies. In addition, thousands more work for non-member chemical manufacturing companies in Texas.
• Expanding the focus nationwide, the business of chemistry contributes to over 550,000 jobs. This figure likely underrepresents the true number, since it does not include jobs at non-member companies, contractor jobs and jobs in research and development.
• These jobs are not just dry statistics or numbers. They represent the individuals dedicated to maintaining plants, ensuring safety, and driving technical innovation.
• Moreover, the chemistry sector fosters a vast network of indirect jobs. These are the jobs that provide raw materials and construction, maintenance, technical, transportation, and training services. For every direct job, an LSU study estimates that 8.2 indirect jobs are also created. This brings our industry’s total impact in Texas alone to around 500,000 high-quality jobs, many located in the Houston area.
• But, it is not just the number of jobs that stands out, but also their quality. Jobs in the chemistry sector generally offer higher-than-average wages, better benefits, and greater job security. Research suggests that jobs in the chemical industry pay up to 50 percent more than the average U.S. manufacturing job, supporting the well-being of families throughout Texas and contributing to the health of our communities.
• These families help form the backbone of our state by paying taxes, supporting schools, and volunteering in their communities. They are an essential driver of community prosperity.
The second fundamental way that the business of chemistry affects our world is through the products we produce.
• Research from the American Chemistry Council (ACC) indicates that nearly all manufactured goods in today’s marketplace involve the business of chemistry. These products touch nearly every facet of life.
• Consider, for instance, the water we drink. Chemistry provides the essential materials necessary to treat and distribute clean water. Food production also relies on chemistry, from the fertilizers to produce it, to the materials necessary to preserve it. Transportation is similarly affected, with chemistry products that reduce vehicle weight and provide the fluids and tires required for efficient operation.
• Our homes, our medicine, and even our recreation all depend on chemical products in some form. In short, nearly everything we use today is influenced by the essential products of chemistry.
Perhaps the most profound product from the business of chemistry innovation.
• The business of chemistry has a long history of advancing human progress — from addressing poverty to promoting health.
• Its products have elevated living standards worldwide and this legacy of innovation will continue to shape our future. Today, chemistry is vital in confronting global challenges, from clean water scarcity to the energy transition, creating new opportunities and improving lives across the globe.
• For example, poverty remains a major issue, with over 700 million people worldwide living on less than $2.15 a day. The business of chemistry is crucial in raising living standards, both by driving local economies and by providing the materials needed for their development.
• In addition, the World Health Organization estimates that 2 billion people lack access to clean water. The products of chemistry are essential to address this profoundly important issue. The energy transition to a lower-carbon future also demands innovation in chemistry — from solar energy and clean hydrogen to processing rare earth materials.
• In 2023, the chemical industry invested $13 billion in research and development, a testament to its dedication to future innovations that will help support a more sustainable world.
Despite its importance, the business of chemistry faces an important challenge.
Namely the need to remain relevant in the eyes of all stakeholders, from public officials to local communities. That’s why it is essential to share our industry’s story and highlight our commitment to transparency and engagement.
Here are two recent examples of our commitment in this important area.
• In Texas, TCC has bolstered its outreach with new communications resources. We have improved our online presence and added member toolkits to help companies enhance their outreach to stakeholders. We also routinely engage with policymakers, addressing issues to promote effective, efficient and sustainable growth.
• On the national level, the ACC recently launched the “Economic Elements of Chemistry”, an online tool that provides vital facts about our industry’s impact on jobs, capital spending, products, and exports. This tool enables anyone to explore important facets of our industry, including economic contributions at the state level.
Perhaps the most compelling advocates for our industry, however, are the men and women who work in it.
Whether through student scholarships, disaster response, or volunteerism, our industry has a long tradition of supporting communities. These efforts continue to grow, and our workforce is as dedicated as ever to giving back, reflecting the industry’s commitment to local and global welfare.
There is great optimism for the future of the chemical industry. Our sector is vital — and, yes, sometimes invisible — but its impact on our region, our state, and our world cannot be overstated.
We will play an essential role in building a brighter future for all.
