NAICS Code 325 - Chemical Manufacturing

NAICS 325 - Chemical Manufacturing

NAICS 32 - Manufacturing
NAICS 11 - Sector 11--Agriculture, Forestry, Fishing and Hunting NAICS 21 - Sector 21--Mining NAICS 22 - Sector 22--Utilities NAICS 23 - Sector 23--Construction NAICS 31 - Sector 31-33--Manufacturing NAICS 42 - Sector 42--Wholesale Trade NAICS 44 - Sector 44-45--Retail Trade NAICS 48 - Sector 48-49--Transportation and Warehousing NAICS 51 - Sector 51--Information NAICS 52 - Sector 52--Finance and Insurance NAICS 53 - Sector 53--Real Estate and Rental and Leasing NAICS 54 - Sector 54--Professional, Scientific, and Technical Services NAICS 55 - Sector 55--Management of Companies and Enterprises NAICS 56 - Sector 56--Administrative and Support and Waste Management and Remediation Services NAICS 61 - Sector 61--Educational Services NAICS 62 - Sector 62--Health Care and Social Assistance NAICS 71 - Sector 71--Arts, Entertainment, and Recreation NAICS 72 - Sector 72--Accommodation and Food Services NAICS 81 - Sector 81--Other Services (except Public Administration) NAICS 92 - Sector 92--Public Administration
- NAICS 325 - Chemical Manufacturing
  NAICS 311 - Food Manufacturing NAICS 312 - Beverage and Tobacco Product Manufacturing NAICS 313 - Textile Mills NAICS 314 - Textile Product Mills NAICS 315 - Apparel Manufacturing NAICS 316 - Leather and Allied Product Manufacturing NAICS 321 - Wood Product Manufacturing NAICS 322 - Paper Manufacturing NAICS 323 - Printing and Related Support Activities NAICS 324 - Petroleum and Coal Products Manufacturing NAICS 325 - Chemical Manufacturing NAICS 326 - Plastics and Rubber Products Manufacturing NAICS 327 - Nonmetallic Mineral Product Manufacturing NAICS 331 - Primary Metal Manufacturing NAICS 332 - Fabricated Metal Product Manufacturing NAICS 333 - Machinery Manufacturing NAICS 334 - Computer and Electronic Product Manufacturing NAICS 335 - Electrical Equipment, Appliance, and Component Manufacturing NAICS 336 - Transportation Equipment Manufacturing NAICS 337 - Furniture and Related Product Manufacturing NAICS 339 - Miscellaneous Manufacturing

The Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry groups.

This subsector does not include all industries transforming raw materials by a chemical process. It is common for some chemical processing to occur during mining operations. These beneficiating operations, such as copper concentrating, are classified in Sector 21, Mining. Furthermore, the refining of crude petroleum is included in Subsector 324, Petroleum and Coal Products Manufacturing. In addition, the manufacturing of aluminum oxide is included in Subsector 331, Primary Metal Manufacturing; and beverage distilleries are classified in Subsector 312, Beverage and Tobacco Product Manufacturing. As in the case of these two activities, the grouping of industries into subsectors may take into account the association of the activities performed with other activities in the subsector.

Industry trends:

The chemical manufacturing industry (NAICS 325) is undergoing dynamic changes driven by technological advancements, sustainability demands, and geopolitical factors. One of the significant trends is the shift towards sustainable and green chemistry. Companies are increasingly focusing on developing eco-friendly chemicals and processes to meet regulatory requirements and consumer expectations for environmentally responsible products. This shift includes the adoption of bio-based feedstocks and the reduction of carbon footprint in production processes.

Another trend is digitalization and automation, where companies are leveraging Industry 4.0 technologies like the Internet of Things (IoT), artificial intelligence (AI), and advanced analytics to optimize production, enhance operational efficiency, and improve safety. These technologies are helping in predictive maintenance, reducing downtime, and improving supply chain logistics.

Additionally, the industry is experiencing a rise in demand for specialty chemicals, which are tailored for specific applications in sectors such as agriculture, electronics, and health care. This demand is driven by the need for high-performance and innovative solutions that offer enhanced functionality.

Looking ahead, the chemical manufacturing industry is expected to continue focusing on sustainability, with more stringent environmental regulations and a push for circular economy models. Companies will likely invest in R&D to innovate new materials and processes that align with these sustainability goals. Furthermore, geopolitical factors and trade dynamics are likely to influence raw material availability and pricing, prompting organizations to reassess their global supply chains and sourcing strategies to maintain resilience and competitiveness in the market.