Chemical products are essential to the production of countless manufactured goods. More than 96% of finished products are directly related to the chemical industry. The industry has greatly influenced our safe water supply, food, shelter, clothing, health care, computer technology, transportation, and almost every other aspect of modern life. The United States is the world's largest producer of chemicals, accounting for nearly one-fifth of world production. With nearly $720 billion in chemical shipments in 2010, the chemical industry contributed more than $226 billion to U.S. GDP, or about 2% of U.S. GDP. In total. The industry exported a record $171 billion of chemicals in 2010, accounting for 10 percent of total U.S. exports. By value added, it is the second largest manufacturing sector in the United States.
Most basic chemical products are concentrated along the Gulf Coast, where oil and natural gas feedstocks are available from refineries. Texas and Louisiana produce most primary petrochemicals. The production of other products, such as plastics, pharmaceuticals and fertilisers, is more widely distributed between states. The chemical industry is the bedrock of the U.S. economy, converting raw materials (oil, gas, air, water, metals, minerals) into more than 70,000 different products. Chemicals are used in the manufacture of a wide range of consumer goods and thousands of products that are essential inputs for agriculture, manufacturing, computers, telecommunications, construction and service industries.
In 2010, the chemical industry spent about $55 billion on research and development. Most chemical RD funding goes to product development. Basic and specialty chemical companies typically spend 1% to 3% of their annual sales on research and development.
