SIC 28 - Chemicals And Allied Products
This major group includes establishments producing basic chemicals, and establishments manufacturing products by predominantly chemical processes. Establishments classified in this major group manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used for ultimate consumption, such as drugs, cosmetics, and soaps; or to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives. The mining of natural alkalies and other natural potassium, sodium, and boron compounds, of natural rock salt, and of other natural chemicals and fertilizers are classified in Mining, Industry Group 147. Establishments primarily engaged in manufacturing nonferrous metals and high-percentage ferroalloys are classified in Major Group 33; those manufacturing silicon carbide are classified in Major Group 32; those manufacturing baking powder, other leavening compounds, and starches are classified in Major Group 20; and those manufacturing artists' colors are classified in Major Group 39. Establishments primarily engaged in packaging, repackaging, and bottling of purchased chemical products, but not engaged in manufacturing chemicals and allied products, are classified in Wholesale or Retail Trade industries.
Industry trends:
The Chemicals and Allied Products industry (NAICS 28) has been experiencing several significant qualitative trends. One notable trend is the increasing emphasis on sustainability and green chemistry. Companies are investing more in developing eco-friendly processes and products, driven by consumer demand and regulatory pressures to reduce environmental impact. This is leading to innovations in biodegradable materials, bio-based chemicals, and the reduction of hazardous substances in production processes.
Another trend is the rise of digitalization and smart manufacturing. Chemical companies are integrating advanced technologies such as artificial intelligence, Internet of Things (IoT), and blockchain to enhance production efficiency, optimize supply chains, and ensure product quality. This digital transformation is expected to drive operational excellence and foster the development of more customized chemical solutions.
There is also a noticeable shift towards globalization and strategic partnerships. Companies are looking to expand their market reach through mergers, acquisitions, and collaborations, which help in sharing technological expertise and entering new geographic markets. This trend is likely to continue as businesses seek to leverage synergies and gain competitive advantages.
In terms of forecasts, the near future is expected to see continued growth in specialty chemicals driven by robust demand in sectors like pharmaceuticals, agriculture, and electronics. Additionally, there will be further regulatory tightening around environmental and safety standards, compelling companies to innovate and adapt continuously. The integration of digital technologies will also likely become more pronounced, leading to more efficient and resilient operations across the industry.
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