Chemical Wholesalers
Description
Companies in this industry operate as merchant wholesale distributors of plastics materials and a variety of other chemical products. Major companies include Tricon Energy and Univar Solutions (both based in the US), Brenntag and HELM AG (both based in Germany), ITOCHU (Japan), and Sinochem (China).
Most large companies operate globally but their distribution networks are concentrated in a single region or country. The US, Germany, Russia, China, and Japan are the top chemical producing countries, according to Your Article Library. According to Statista, the US production volume of the chemical industry is expected to increase by 0.3% by 2026, according the Chemical & Engineering News.
The US chemical wholesalers industry includes about 13,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $240 billion.
COMPETITIVE LANDSCAPE
Chemical distribution is a cyclical business dependent on industrial demand. The profitability of individual companies depends on an efficient distribution system. Larger companies can offer more products and services. Local and regional distributors can compete effectively through superior service or geographic focus. The US industry is concentrated: the largest 50 companies generate about 60% of the revenue.
Imports to the US of industrial chemicals and plastic resins, largely from Canada, Ireland, Germany, and Japan, according to the US International Trade Commission (USITC). Many of these imports move through chemicals distributors.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products distributed by chemical wholesalers include chemicals (except explosives), which account for about 40% of the industry's revenue. This is followed by cleaning chemicals (about 15%) and miscellaneous chemicals and supplies (over 10%). Other products include laminates, plastic raw materials, and automotive chemicals.
In addition to selling and transporting chemicals, distributors offer other services including blending, packaging, technical training, and managing customer inventories. Waste removal is a particularly common service to offer. Many suppliers specialize in certain types of chemicals.
Products are bought from manufacturers of industrial chemicals, including petroleum refiners. Multiple suppliers exist for almost all chemical products. A large distributor typically buys from several dozen chemical manufacturers. Distributors may have long-term distribution agreements with suppliers that specify quantities and price formulas.
Large wholesalers have multiple facilities around the country. Facilities include warehouses, tank and rail terminals, and custom blending facilities, and are usually located close to major industrial areas. Distributors that offer waste removal and disposal services typically operate a centralized processing facility. Chemical waste is incinerated, blended into fuels, or recycled.
Most large companies operate globally but their distribution networks are concentrated in a single region or country. The US, Germany, Russia, China, and Japan are the top chemical producing countries, according to Your Article Library. According to Statista, the US production volume of the chemical industry is expected to increase by 0.3% by 2026, according the Chemical & Engineering News.
The US chemical wholesalers industry includes about 13,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $240 billion.
COMPETITIVE LANDSCAPE
Chemical distribution is a cyclical business dependent on industrial demand. The profitability of individual companies depends on an efficient distribution system. Larger companies can offer more products and services. Local and regional distributors can compete effectively through superior service or geographic focus. The US industry is concentrated: the largest 50 companies generate about 60% of the revenue.
Imports to the US of industrial chemicals and plastic resins, largely from Canada, Ireland, Germany, and Japan, according to the US International Trade Commission (USITC). Many of these imports move through chemicals distributors.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products distributed by chemical wholesalers include chemicals (except explosives), which account for about 40% of the industry's revenue. This is followed by cleaning chemicals (about 15%) and miscellaneous chemicals and supplies (over 10%). Other products include laminates, plastic raw materials, and automotive chemicals.
In addition to selling and transporting chemicals, distributors offer other services including blending, packaging, technical training, and managing customer inventories. Waste removal is a particularly common service to offer. Many suppliers specialize in certain types of chemicals.
Products are bought from manufacturers of industrial chemicals, including petroleum refiners. Multiple suppliers exist for almost all chemical products. A large distributor typically buys from several dozen chemical manufacturers. Distributors may have long-term distribution agreements with suppliers that specify quantities and price formulas.
Large wholesalers have multiple facilities around the country. Facilities include warehouses, tank and rail terminals, and custom blending facilities, and are usually located close to major industrial areas. Distributors that offer waste removal and disposal services typically operate a centralized processing facility. Chemical waste is incinerated, blended into fuels, or recycled.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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