In an era shaped by rapid technological advancements and global competition, the U.S. must play to its strengths to maintain and increase its leadership on the world stage.
One of the strengths America has over many other countries is a strong and growing domestic chemical sector.
Chemistry plays an indispensable role in driving economic growth, innovation and national security. It is the bedrock of modern life, underpinning the creation of countless products and technologies that families and businesses depend on daily. From the smartphones in our pockets to the vehicles we drive, the products that hundreds of millions of Americans — and even more worldwide — rely on start with chemistry. Behind these products are America’s chemical manufacturers who support more than 4 million jobs and 25% of U.S. GDP.
America’s future is at a crossroads because of missteps regarding chemical regulations under the previous administration that discouraged job creation and investment, increased operating and compliance costs and jeopardized national security. These missteps widened the gap between the U.S.’s chemical manufacturing capacity and future demand, while also hindering its ability to compete with other countries.
The U.S. is currently the second largest chemical producing country after China. At our current trajectory, U.S. chemical manufacturing capacity will not be able to keep pace with future demand here at home. Over the next 10 years, domestic demand for chemicals is expected to grow by 15%. The U.S. manufacturing capacity, however, is expected to grow by only about 10%. As America’s economy grows and prospers, demand for essential products — including the chemicals needed for products and national priorities — will increase, which should create an opportunity for America to fill this need.
A stronger, more competitive America requires more American chemistry
For the U.S. to meet this demand, a smarter, more predictable regulatory process is imperative for producing more at home. Effective policymaking requires understanding the intricate relationships across industries and the essential role that chemistry plays in the economy and achieving U.S. priorities.
Too often under the previous administration policies were made in a vacuum, not accounting for the ripple effects that restricting chemical production can have on manufacturing, the economy, American jobs, the availability of everyday products and our competitive edge. For example, many manufacturers have decided to introduce new chemicals outside of the U.S. due to regulatory uncertainty.
Policymakers should heed what has happened in Europe. Poor policy choices have contributed to the deindustrialization of the EU across most manufacturing sectors. Europe’s share of worldwide chemical production is half of what it was only two decades ago.
There are five key principles that policymakers should keep at the top of mind for a stronger, more secure America:
- Drive predictable, transparent, fact-based policies
- Foster more production in the U.S.
- Prioritize energy independence and bolster the chemical sector’s trade surplus
- Safeguard communities and incentivize job creation
- Protect national security and supply chains
Our industry wants to work with policymakers to help give people across the country what they want: a stronger, more affordable America.
A more competitive America relies on making more products here at home and that requires more American chemistry. American success relies on American chemistry.
For more insights on how growing U.S. chemical production can help make America the world’s manufacturing superpower, follow me on LinkedIn and @JahnChris on X.
For more information, visit americanchemistry.com.
