The Chemical Distribution Industry is a powerful force in the chemicals and specialty ingredients markets. Below are a few statistics demonstrating performance within the industry reflecting annual data for 2023.
In 2023, 26,209 companies were registered with the FMCSA and reported that they carried chemicals. In that calendar year, 903,200 more trucks were reported (up 50.3%) along with a (61.2%) increase in total miles driven.
(*These data come from an annual operators census and reports filed with the FMCSA. They are highly variable and full of coding and data errors. Missing data were interpellated where possible.)
The number of incidents fell in the fourth quarter of 2023 to the lowest level for the year. There were, however, three additional fatalities reported, for a total of 11. This is nearly three times the number of fatalities reported in 2022.
Note: Incident Data (OSHA): While data from these databases change daily, most companies report only once a year. This means that the data cannot be reported in full until the year closes.
Substantial growth in operating expenses led to a reduction in margins over the last two years.
Sales and Inventory
2023 saw an overall decline in chemical sales (in nominal terms), with sales off by about 10.6 percent. Average inventories were down by about 7.5 percent, causing the inventory/sales ratio to soar.
Price Data
Producer prices for industrial chemicals were down by about 8.3 percent for the year, however, specific categories increased substantially, particularly cleaning products which increased 6.6 percent in price.
Company and Employment Data
The Bureau of Labor Statistics reported that the number of Chemical Wholesaling firms rose by 0.6 percent in the third quarter with overall employment in the sector up by 3,340 jobs or 2.2 percent.
Trade Data
Chemical imports fell by about 4.8 percent between 2022 and 2023, with China accounting for nearly all of the losses.
Output Data
Newly available 2023 output data shows increases across the chemical products industry from 2022. YoY industry output grew about $23.9 billion (2.4%), while value added increased by $11.8 billion (2.4%).
Data above is gathered via publicly available resources and includes the broader chemical distribution industry (NAICS 424690). The data has been assembled by John Dunham & Associates for ASK Distribution Consulting and is updated quarterly.
ASK Distribution Consulting™, LLC is a wholly owned subsidiary of Alliance for Chemical Distribution (ACD). ASK Distribution Consulting™ is organized for the purposes of supporting the commercial viability and sustainability of companies active in chemical, specialty, and essetial ingredients distribution.
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