Chemical Expansion Revealed in First Postwar Census HARRY STENERSON, Associate Editor O NB of the largest industrial expansions i n t h e nation's history took place in chemical manufacture between 1939 and 1947. The Census of Manufactures, a detailed survey of production, sales, labor, materials, and other costs in American industry, shows that between the prewar and the postwar years chemical manufacture in this country more than trebled in point of production and sales, and that some of its branches such as medicinal chemicals increased more than 800%. I t will b e seen from the accompanying statistical summaries that organic chemicals led all other divisions of the chemical industry with shipments of more than $3 billion, a gain of almost four times over 1939, the last previous census year. For all chemicals and allied products (Table I I ) , the total volume measured in terms of dollar sales or shipments was $12.1 billion, as compared with $3.5 billion (luring the prewar year, an increase of about 3.5 times. This huge dollar total probably should be modified by more than 20% in order to give effect to postwar inflation, but even after such a correction the volume is impressive. These totals obviously incorporate a certain amount of duplication due to the nature of chemical processing. T h e industry, as has been said, is its "own best customer." It processes many materials that are in their primary stage into more advanced forms of chemicals, solvents, alkalies, dyes, etc., and the like. For this reason it has been suggested that "value added b y manufacture" might provide a better idea of the industry's growth. Analysis and comparison of the more detailed data in the reports, containing statistics for individual products, also is suggested for those who have the facilities for such a study. I n previous years, a survey of chemical business would be confined to organic and inorganic chemicals. Related lines are now included in such surveys owing to the expansion of chemical manufacture into fields formerly dominated b y other industries. T h e soap and glycerol group serves as an example. T h e organic chemicals which enter detergents, and in some cases t h e detergents themselves, are produced b y chemical manufacturers. T h e drugs and medicines group is another. A large contribution t o the increase in dollar sales in this group was made b y chemical companies producing penicillin, streptomycin, sulfonamides, and m a n y other essential medicinal chemicals. T h e result was a meteoric rise in the group total of over 800%. Table I contains many surprising developments in fields not ordinarily con-
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sidered chemical. I n the vegetable and animal oil group it will b e found that the business of extracting oil and other products from soybeans has, for the first time, run ahead of cottonseed oil. T h e soybean, formerly an agricultural product of the Far East, is now in the half billion dollar class. T h e value of soybean mill products totaled $585.7 million in the latest census year, compared with $43.9 million in 1939. T h e industrial inorganic chemicals industry, it might be noted from data presented in Table I, is b y n o means dominated b y alkalies and chlorine a s it was earlier in the history of t h e industry. T h e shipments of sodium h y droxide, sodium carbonate, and of chlorine more than doubled during the census year over the business of 1939 in these basic alkalies, but it will be discovered also that business in the general group of inorganic chemicals scored better than a 100% expansion. For one thing, there was a very sizable expansion i n sulfuric acid during the period (from 4,795,000 tons to 10,780,000 tons, 100% H2SO4 basis) and some striking increases a t the same time in other acids; notably hydrochloric, boric, phosphoric, and "mixed" acid of nitric and sulfuric. E v e n more outstanding production and shipment gains were scored in other branches of the inorganic chemical industry. Aluminum chloride probably tells the story of aluminum rather than chemical manufacture, still the chloride has been included in the inorganic summary. Its production rose from 5,024 tons t o 232,263 tons. Ammonium nitrate, fertilizer and industrial, was manufactured to the extent of but 25,900 tons in 1939; today, it is used well in excess of a million tons. Among other inorganics, gains are noted from the prewar t o the postwar year in calcium chloride (253,600 tons to 660,000 t o n s ) ; sodium dichromate and chromate (54,300 tons to 90,200 t o n s ) ; copper sulfate (34,000 to 87,800 t o n s ) ; hydrogen peroxide (10,700 tons t o 23,900 tons); salt cake (226,000 t o 693,500 tons) Glauber's salt (34,400 to 202,200 t o n s ) ; and sulfur dioxide (13,400 t o 44,800 tons). Organic Chemicals Business in organic chemicals, totaling $3,066 million during the census year compared with $810 million in 1939, shows an expansion of 3.8 times. This is the branch that has witnessed more scientific and product development than any group in chemicals and related products. T w o large contributions t o the organic expansion were' made b y synthetic
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fibers and synthetic rubber, and statistics for the latter were n o t compiled in the previous census. T h e group, "organic chemicals, n o t elsewhere classified/' shows the largest value total owing to the inclusion of the bulk of materials known as synthetic organic chemicals. I n this category are dyestufls, intermediates; acetic, adipic, formic, and oxalic acids and their salts; ethyl and butyl alcohols; methanol, ethylene glycol, acetone, carbon disulfide, and carbon tetrachloride. Some of these represent the most important chemicals made b y t h e industry in point of volume. Plasticizers are included in the $1.4 billion total for this miscellaneous group but not finished plastics which would involve a good deal of duplication. T h i s same group (organic chemicals, n.e.c.) shows the greatest increase i n plants; from 192 before the war to 258 in the census year. A great increase also has taken place in the number of e s tablishments manufacturing plastics (41 to 125), but there has been little in sources for coal tar crudes. The rise in shipments of the latter group is explained more b y increased facilities. Census Bureau vs» Tariff Commission T h e Bureau of the Census report on organic chemicals differs from data issued annually b y the U. S. Tariff Commission i n a number of respects. T h e bureau explains this in an introduction to i t s statistical summary. I t says that in general the reports made to it are for the value of the product shipped whether i t is a chemical or a finished product. Sales figures reported to the Tariff Commission represent the value of the organic chemical whether it is shipped as a chemical or incorporated in another product. For example, a paint manufacturing plant reports the dollar sales for paints to the Bureau of the Census, and reports the dollar value of the synthetic resin used in these paints to the Tariff Commission. There are also differences i n definition. The commission figures for synthetic rubber i n clude data for elastomers which are reported to the Census Bureau as plastics materials. T h e bureau also includes the value of interplant transfers within' an organization, and excludes product data from laboratories which the commission usually reports. T h e discrepancies as between the Census Bureau and Tariff Commission surveys are n o t great, excepting possibly i n tar crudes. T h e bureau places shipments of these during 1947 at $65,979,000 a s against $120,000,000 reported b y t h e tariff body. There are
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Table I.
Census of Manufactures, 1947: Industrial Chemicals and Related Products
Cost of Materials, Fuel, Electricity, Value of Products Value Added and Contract Shipped (Thousands Number of All Employees by Manufacture Work (.000 dollars) of Dollars) establishments Av. for Year (,000 dollars) 1947 1939 1947 1939 1947 1939 1947 1939 1947 1939 $ 208,560" $101,857 32 33 19,853 n.a. $113,868 $ 68,204 $ 94,692 $ 33,653 Industrial Inorganic Alkalies and chlorine Chemicals Inorganic chemicals, n.e.c. 741,268* 302,170 380 307 45.494 n.a. 340,831 165.514 331,814 136,656 Total industrial inorganic chemicals 949,830 404,027 43,568 21,368 60,639 32,801 46 45 1,972 n.a. 17,071 11,433 Industrial Organic Cyclic coal tar crudes 43,582 483,461 83,324 125 41 29.337 n.a. 200,341 39,742 283.120 Chemicals Plastic materials 137.844 235,200 n.a. 20 ... 7,663 ... 97,356 Synthetic rubber 262,615 78,460 705,271 247.066 38 30 71.882 55.471 447.877 168.606 Synthetic fibers 61,650 26,860 136,356 71,053 76 80 10.426 8.315 74,706 44,193 Explosives 1,445,210 376.587 258 192 85,015 n.a. 714,030 212,827 731.180 163,760 Organic chemicals, n.e.c. 18,811 7,403 38.752 19,449 85 80 3.154 n.a. 19,941 12,046 Drugs and Medicines Biological products 7,386 3,280 Botanical products 16,395 7,669 15 17 709 n.a. 9,009 4,389 91,245 10,314 Medicinal chemicals 201.761 21,015 92 20 12,338 n.a. 110,516 10,701 Pharmaceutical preparations 941,713 338,224 1,163 1,000 65.552 n.a. 609,104 233,513 332,609 104,711 6,235 3,928 Gum and Wood Chom- Hardwood distillation 13.725 6,843 27 43 1,872 2,091 7.490 2,915 26,935 6,524 icals; Fertilizers Softwood distillation 72,999 14,114 32 25 4,574 2,924 46,064 7,590 36,397 13,396 Gum naval stores (steam distilled) 38,508 17,362 31 755 638 1,892 2,634 3,966 Natural tanning and dyeing mate11,567 6,019 18.344 12.271 28 35 1,382 n.a. 6,777 6,252 rials 60,632 Fertilizers, mixing only 192,848 85,701 517 592 11,562 n.a. 59,745 25.069 136,271 68,117 Fertilizers 311,657 100.289 187 171 20.371 n.a. 126,856 32,172 197,049 1,248,841 427,089 1,291 1,125 53.412 n.a. 469.584 185.723 779.257 241,366 Paints, Pigments Paints and varnishes 41,014 269,970 79,387 94 59 13.140 n.a. 94,658 38,373 175.312 Inorganic color pigments 9,796 1,994 18,791 3,716 71 41 1,255 n.a. 8.995 1.722 Whiting and fillers 518,091 171.476 315 447 14,398 18.519 104,603 32.712 413.488 138,764 Vegetable and Animal Cottonseed oil mills 149,930 56,456 192,173 68.012 17 25 1.577 2.388 42,243 11,556 Oils Linseed oil mills 34,435 585,709 43.947 133 47 6,460 2,010 105,291 9,512 480.418 Soybean oil mills 15,541 334,231 19,222 84 38 5,036 n.a. 77,509 3,681 256,722 Vegetable oil mills, n.e.c. 16,232 13,953 31,265 20.165 59 81 1,947 n.a. 15,033 6,212 Marine animal oils 187,521 38,115 304.535 58.226 556 310 12,472 6.536 118.830 20.111 Grease and tallow 50,943 6,650 Fatty acids 68.094 9,463 16 9 1,335 n.a. 17,151 2,813 9,859 555 Animal oils, n.e.c. 11,675 743 14 5 206 n.a. 1,816 188 Soap, Glycerol, Related Soap and glycerol 1,085,789 302,634 249 264 27,660 20,191 450.721 141,632 640,424 161,002 Products Cleaning and polishing prepara126,854 37,670 261,565 89,767 1.038 637 15,352 9,978 135,120 52.097 tions 31,268 10,504 51,506 17,763 105 85 1.950 n.a. 20,238 7.259 Sulfonated oils and assistants 145,020 58,510 371,892 147,466 718 539 26,023 15.614 226,872 88.95C Miscellaneous Chemical Toilet preparations 54,237 18,794 99,262 34,332 72 80 5,372 3,973 45.346 15,53* Products Glue & gelatin 28,345 6,104 73,592 14,627 59 53 3,184 1.909 44.962 8,523 Carbon black 26.656 13,532 Compressed and liquified gases 93,489 53,365 371 379 8,983 6,450 66,833 39,833 42,947 5,348 Insecticides and fungicides 73,068 9.173 166 83 4.579 n.a. 30.121 3,82* 20,859 9.569 Salt 46,056 27.530 38 40 4.809 4,555 25,297 17,961 199.806 46,837 Chemical products, n.e.c. 393,242 100,210 1,174 814 22,153 n.a. 193,436 53,373 63,759 23,955 Printing ink 115,708 47,243 239 197 6,021 n.a. 51,949 23,28* 21,262 7,401 Essential oils 35,739 12.322 42 15 1.151 n.a. 14,477 4,921 a Shipments of alkalies and chlorine by other industries included in this total were $29,838,000; those of inorganic chemicals, S159.449.000. Data compiled from complete reports of Bureau of the Census, U. S. Department of Commerce.
only minor differences in dyes, intermediates, rubber chemicals, and organic pigments. The plants engaged in the manufacture of the products of the chemical and related industries numbered 10,023 in the census last taken, which compares with 8,839 in the 1939 survey, an over-all gain of about 14%. Four branches have more than 1,000 establishments—pharmaceutical preparations, paints and varnishes, cleaning and polishing preparations, and miscellaneous chemical products, n.e.c. Some chemical groups have been able to achieve increased production with the same or with fewer establishments. Notable examples are alkalies and chlorine; the linseed oil industry; coal tar crudes; botanical products; natural tanning and dyeing materials; soap and glycerol; rosin and turpentine. Plant consolidation has been notable in the naval stores field due to the introduction of the "central" still in the South's naval stores belt. Central processing plants during the past 15 years have almost completely supplanted individual operators' country stills in this industry. Plant locations, aside from area groupings, are not specifically or completely listed in the new census so as to avoid disclosing reports from individual companies. In organic chemicals, the report VOLUME
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reveals that of the 258 plants surveyed 128 were distributed in the Middle Atlantic States, and that of these 128 establishments 55 were located in New Jersey, 47 in New York, and 26 in Pennsylvania. The South shows the result of its recent chemical expansion with 50 plants manufacturing organic products, while the East North Central States are third with 38, the West fourth with 20, New England fifth with 15, and West North Central sixth with 7 plants. The Middle Atlantic States are also the preferred area for plastics materials manufacture and account for 64 of the 125 plants engaged in this activity. In synthetic fibers, however, the Northeast Table I I . Summary: Dollar Value of Shipments by Chemical and Related Product Industries (Thousands of Dollars) 1947 1939 Industrial inorganic chemicals $ 949,828 $ 404,027" Industrial organic chemicals 3,066,137 810,831 Total industrial chemicals $ 4,015,965 $1,214,858 Drugs and medicines 1,198,621 386,357 Gum and wood chemicals 143,576 50,590 Fertilizers 504,505 185,990 Paints and allied products 1,537,602 510,192 Vegetable and animal oils 2,045,773 391,254 Soap, glycerol, related products 1,398,860 410,164 Miscellaneous chemical products 1,302,048 446,268 Total $12,146,950 $3,595,673 ° Estimated.
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and the South have most of the plants, while 15 of the 20 plants manufacturing synthetic rubber are in the South and the West. The most widely distributed branch is the one devoted to the manufacture of pharmaceutical preparations whose 1,163 establishments are located in practically every area of the nation. Some of the largest increases in the compilation, in point of dollar turnover, are shown in the "Miscellaneous Chemical Products" group. Here the bureau has grouped a foremost raw material such as salt along with the finished consumer products known as toilet preparations (cosmetics, perfumes, dentrifrices, etc.). The result is a dollar total for this classification of $1.3 billion compared with $446 million in 1939. The miscellaneous category shows that insecticides and fungicides rose from a minor industry of some $9 million in prewar shipments annually to over $73 million during the last census year. The government has included DDT and the newer organic insecticides in this total as well as the arsenates, also copper sulfate and other fungicides. Compressed and liquefied gases disclose a more moderate growth a t $93,489,000, while carbon black reflects the introduction of synthetic rubber and its heavier carbon loadings with a much sharper rise. 3693
