It’s no surprise that the last couple of years have been filled with economic challenge after challenge. During, and after, the pandemic, chemical distributors across the nation were tasked with navigating and recovering from some of the most difficult and unprecedented situations. However, based on current economic trends, it seems that we are finally approaching a sense of normalcy. Shipping costs are back down, trucking has capacity, and after chemical price inflation has moderated since last year, inflation growth rates appear to be slowing as well.
While some stressors have begun to ease, the chemical industry is still navigating issues like skilled labor shortages and inventory management. NACD designated August as our Economic Impact Month, and throughout the month we highlighted the wealth of economic data available to members to help inform their business decision-making and economic standing in comparison to the rest of the chemical industry.
Through our partnership with the economists at John Dunham & Associates (JDA), NACD members have access to NACD's Industry Watch, a monthly economic report created exclusively for NACD members and Affiliates. This report consists of six different economic scenes: employment, prices, money, commodities, growth, and policies. These economic indicators are used to analyze the recent impact of our industry and forecast economic trends facing distributors in the near future. market data make determinations on business decisions like. This report allows chemical distributors to make informed economic decisions in areas like expansion, hiring, purchasing, and more, and adjustments for the benefit of their companies.
NACD members and Affiliates also receive a quarterly report that provides useful information on the overall industry’s incidents, accidents, and other safety measures. The data points give distributors a benchmark from which they can highlight their strengths and determine areas where they need to improve.
“Economic data is a key foundation to understanding and communicating the importance of the chemical industry,” said John Dunham, Managing Partner of JDA. “This data shows the ways in which distributors influence the economy of a region far outside of their general operations.”
NACD members can also use the Economic Impact feature on NACD’s website. JDA recently helped NACD update the data on our Economic Impact Data Generator to give our members the most up-to-date figures in areas like total economic impact, number of jobs, average wage, and number of chemical facilities nationally, by state, and by Congressional district. JDA’s independent analysis allows chemical distributors and the policy makers who make decisions about our industry to understand the full impact that our businesses have on the economies of the regions and communities in which they operate.
“By having this economic data on hand, distributors can better communicate with those who may not have a full understanding of the industry—whether you are talking to a local rotary club or hosting a Member of Congress for a site visit, this data set allows you to illustrate the importance of chemical distribution to your community, key stakeholders, and customers.”
To learn more about your local impact, check out NACD’s Chemical Distribution's Economic Impact page here. Through our partnership with JDA, members can also reach out to NACD to access even more precise data about the positive economic impact that chemical distribution has on a specific region. Contact Susannah Williams at swilliams@acd-chem.com if you are interested in learning more.
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