Chemicals

The chemicals industry is expected to have about 2.5 percent growth in 2024, with about 2 percent growth predicted in 2025, according to an American Chemistry Council (ACC) forecast. Modest growth is predicted as the economy strengthens in post-pandemic times. Much of the chemicals industry’s production relies on on-site jobs and products manufactured in China. The pandemic, which led to business closures and social restrictions, made it difficult for many companies to continue business as usual in 2020 and 2021. A decline in demand for products that corresponded to an economic slowdown, decreased consumer activity, and shortages of related products also hurt the industry. The interruption of global supply chains inhibited shipping of available or in-demand products, creating further trouble for the industry.

Consumer spending has since steadied, with nearly 2 percent growth predicted for 2025. The ACC points out that business investment grew by nearly 5 percent in 2023, due to recent legislation such as the Inflation Reduction Act and the CHIPS and Science Act. Business investment was expected to have slower growth (about 3 percent) in 2025, however, due to rising borrowing costs and tighter credit restrictions.

The outlook for industrial production in the chemicals industry improved in 2024 compared to 2023, but remained weak, with minimal growth in both years, and about 1.7 percent growth forecast for 2025, according to the ACC report. The manufacturing industry in the U.S. experienced contraction in 2022 and 2023, but is expected to recover, with 12 of the 18 key chemistry end-use industries, such as automotive, aerospace, and electrical/electronics, expanding the most. Post-pandemic, there continues to be pent-up demand for vehicles, which will contribute to growth in chemistry products. The ACC explained that in North America, there are more than $4,400 worth of chemistry products, including 426 pounds of plastics and composites, in an average automobile. In addition, electric vehicles, which comprise one-tenth of all vehicle sales, are made up of 85 percent more chemicals than internal combustion engine vehicles.

Chemical producers are expected to grow by nearly 2 percent in 2025 compared to the previous year. Chemical producers in the Midwest and Gulf Coast regions were forecast to have the largest growth. Other areas in the chemicals industry that will have growth include petrochemicals and organic intermediates, inorganic chemicals, and plastic resins. Agricultural chemicals will see small growth, at 1 percent, and consumer products will have 1.5 percent growth through 2025.

The outlook for different chemical manufacturing jobs was variable. Through 2032, the Department of Labor expects employment of chemists and materials scientists to increase 6 percent, or faster than the average. Chemical technicians will experience 3 percent employment growth, which is about as fast as the average. Chemicals plant and system operators and chemical equipment operators and tenders will each experience a decline of 2 percent.

Although declines in certain manufacturing industries will have a negative impact on employment, many job opportunities will still exist. Chemists will benefit from a need to develop nanotechnology-based treatments in the medical field and help manufacturers improve their use of green chemistry and reduce pollution. Chemical technicians will be needed to help chemists and chemical engineers test new materials. Chemical engineers will be needed to develop plastic resins that improve automobiles' fuel efficiency and meet demand for natural gas production.

As in many other industries, the number of people that will be retiring over the next decade is expected to increase, which may also lead to the need for more workers in this industry. The impact of this may be less, however, than in other industries, due to the overall modest growth of the industry as a whole.

Fast Growing Sectors

One area of strong growth is expected to be forensic chemistry, especially DNA analysis. Forensic scientists will be needed in the coming years to work in private laboratories and government agencies. There is also a need for chemists to do crime-scene investigation and analysis of evidence. Opportunities are also expected to be excellent for forensic science technicians, with 13 percent employment growth through 2032, as forecast by the Department of Labor.

Another growing sector is biotechnology. Biotechnology is creating many partnerships between sectors and can be used to help clean up the environment as well as in the agricultural and pharmaceutical sectors. Chemists are needed to continue the research and development of new products in these fields.

Companies that provide environmental services and earth-friendly products should do well. Environmental concerns will also continue to compel the chemical industry to devote resources to comply with governmental regulations. Therefore, occupations related to compliance, improvement of product visibility, and promotion of consumer confidence should grow. International competitiveness will also be important.

Consumer product companies are also experiencing steady employment needs. As consumers continually seek new or improved products or those that are more environmentally friendly, companies are hiring chemists and chemical engineers to develop and test ingredients that could meet consumer demands.

Other Trends

Other trends include a continued emphasis on research and development. In order to stay competitive and differentiate their products, companies will continue to produce specialty chemicals, such as advanced polymers and plastics, which are designed for specific uses. This should increase employment of chemists in research-oriented positions.

A focus on new manufacturing processes will also continue and should represent opportunities for chemical engineers. The market shift to specialty chemicals and increasing competition will create more marketing and sales positions as companies strive for product visibility and an increasing market niche. In general, opportunities in the chemical industry continue to be best for those with advanced degrees.