Consumption of Inorganic -hemicals W. J. RILCI AND
C.
0 CHEMICAL DIVISION, FOOD MA-
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M. MlLLw & CHEMICAL COW.. NEW YORK 17, N. Y
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TIUlocation of
a wid. v A t y of chemicd-aM.uminp indvnpir within the t h t a t e ana makr it an oubtanding market for inorganic chemieeh. ThL purchases slightly more than one quarter of the total inorganic chemical available for sale. The “IntsrindustryRelation Study for 1947” of the U. S. Bureau of Labor Statbtia sarved ae the basis for estimating the 19% p u h e h of inorganiw. The concentration of principal consuming industriea, as well aa the principal chemic& consumed in
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~
~~
~
the area, is given. The b d c c h i c a b - c a u s t i c d e . sulfuric acid, soda ashwhich mo9. in large tonnand mrva ae M W material. for many industries, etiU form tha foundationof the inorganic chemic& industry. However, in recent y-, “growth“ compounds such titanium dioxide, sodium phosphates, ammonia, and chlorine have helped to widen thb foundation. Population growth and industrial expansion indicate e continued good marbt for inorganicsin the area for the immediate futun.
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DISTRIBUTION OF INORGANIC CHEMICALS
I N MARKETING chemical Droducts it is often verv helnful 4 to be able to determine all’of the chemicals which are consumed within a particular industry, and to h o w all of the industries which are consuming a 8peci6c chemical. However, for a truly extensive study of a chemical market situation, it is necessary to determine for a single chemical or for a group of chemicals all of the consuming industries within a geographic area. It is this definition of a market within a designated mea which makes a moat valuable and also B mast difficult study. The flow of chemicals from one process industry to another is long and complicated. In many industries, the use of a specific chemical is not readily apparent from the final product output and can be determined only though a detailed study of production technologies. The basic chemical compound may be a raw material for the manufacture of an intermediate product, which in turn serves as a raw material for still another induatrv. While the greatest value is unquestionably obtained by the study of an individual product, the conaolidation of a large number of such studies would be required in obtaining an over-all picture of the markets for a CIMS of compounds such as inorganics in the three states. New York. New Jersev. “, and Pennsvlvania. For the purposes of this paper, however, a m e r e n t approach was chohen in obtaining a broad picture of the markets for inorganics in this particular area. Fortunately, some new data, developed by the Division of Interindustry Eoonomics of the U.9. Bureau of Labor Strttiatics,can serve as the basis for suchan analysis (5). This study was a determination of an inputoutput balance of the material and service requirements of 500 sectom of the national economy which make up 50 major industries, activities, or purobasiug groups. “Chemicals” is one of the 50 groups or industries on which data were accessible. In this paper only the inorganic chemicals category, consisting of alkalies and chlorine, inorganic chemicals, and inorganic color pigments, is considered. The individual chemioala making up these subgroups are d e h e d by the Bureau of Census and cover the following in general t e r m : Alkalies and Chlorine Alkali metal hydroxides, carbonates, bicarhonstea, etc., and chlorine, etc. Inorganic Chemicals Ammonia and ammonium compounds, inorganic acids, and inorganic =Its etc. Inorganic &lor Pigmenta Iron oxides, zinc oxide, white lead, blanc fixe et&, titanium pigments, ultramarine, vermillion, and chrome,’iron, and dry colors ~~
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The national diatribution of these three subgroups of thc inorganic chenlicals categorv is ahown iu Table I in t e r m of supply or output and purchases or demand. The upp ply represents manufactures, imports, and inventory depletions. The consumption is repreaeatnl hy thr ultimate conaumer (final demand sertor) and by procetaing groups (intcrnrcdiate sertor). Them diatributiona are expressed in t e r m of dollar value (f.0.b. plant) and not in pounds. They reprcsent ahipmentn nr transfers and exclude vaptive u e nithin the producing plant. This captive uae, of coume, is measurcd in the output of the product ultimately ahippcd-for example, wme producem of ammonia ship it aa surh, and also manulwture in the same plant other products such as nitric wid and urea, which are either shipped (output) or convened into othcr produrts which are eventually shipped.
Table 1. Distribution of Supply of Inomnic Chemicals, 1947 (Amounta are millioar of dollam of net d e a f.0.b. plant)
%
~
supply
of inorganic chemiasb ~
~
;
o
A1kdi:chlorine infustry
Other mdmtria, -Era competiti.re impprts Inventory deplstmns
~
$
~
~
~
~
EXPOrts Eovaehold Government New oonstruction Inventory increaaea
$138.5 19.8 12.4 7.8 1.5
Manuf8cturira industries Agrioulturo
esrvioe h d e a
Mining o r e and coal) un&tdL“td
T0t.l
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$1322.7
100.0
$ 180.0
10.5 1.5 0.9
$957.5 94.2 16.3 5.3 69.4
13.6
0.6
0.1 1142.7
I ~ D M ~
% 47.2 17.6 12.8 17.8 4.7 0.1
188.5 282.6 82.5 1.8
inorganics
Total ~ ~ hof inoqanic s s ~ohemiaala ~ Final demnnd seotor
s 624.4 & a92.9 ~ y
,
$1322.7
86.4 72.5 7.1 1.2 0.4 5.2
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100.0 from Division of Intarindustry Eaonomios. of ~~b~~ statist,ca.
Data am ~reliminaryaod
r ~8.. B~~~
de
From Table I, it can seen that $1,025,8Oo,ooOof the supply (77.6%) came from the three basic industries previously dc fined, while the balance, $296,9OO,ooO (22.4%), came from othc aource8. Chief m o n g these were variom industries outsid
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INDUSTRIAL AND ENGINEERING CHEMISTRY
Yol. 45, No. 3
Phosphate P l a n t Vr'estvaco C h e m i c a l Division, C a r t e r e t , N. J.
Table 11. U. S. Purchases of Inorganic Chemicals by Manufacturing Groups, 1950 and 1947 (Amounts are millions of dollars of purchases f.0.b. plant) lfanufacturing Group Purchasing 1950 1947 Chemical a n d allied products 690.1 ,1.>1, 6 Primary metals industries 114 4 76.8 Stone, clay, a n d glass products 69.4 %ad. 8 Machinery (includes electrical) 65.6 58 7 Paper and allied products 60.5 54 8 Petroleum a n d coal products 47 4 33.8 Textile mill products 41.1 33.5 Rubber products 29.8 25 4 Professional instrumentsa 23.1 20 0 Food a n d kindred products 22.1 22.5 Fabricated metal products 13.7 10.3 Leather a n d leather products 6.8 7.7 A l l other aroupsb 7.2 0.6 Total 1191.2 9j7.j
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a Includes professional, scientific, a n d controlling instrunleiits, photographic a n d optical goods watches a n d docks. b Includes lumber and kood products, printing. publishing, and allied industries transportation equipment, miscellaneous manufacturing industries. 1947 bata are preliminary a n d are from Division of Interindustry Economics, U. S. Bureau of Labor Statistics. 1950 data are estimates deleloped by authors.
the inorganic chemical field which xvere niaking these coiiipourida -for example, tlie niaiiufacture and sale of cnwtic sotla by the paper and pulp industry. The intermediate sector or prot group n-as tlie major purchaser, TTith $1,142,i00,000 (86% of the tot,al supply) of purchases of inorganica. The manufacturing industries Tvithin this sector, n-ith purchases of S03i,300,000 (72.5%), are by far the single leading buyer. This ic: t o I,e expected, as it is t,his group which converts and processes the inorganics, their raw materials, or input, into final eiicl products, n-hich is t,heir output.
measures of indust,ry coiiceiitration, Where possible, th were also adjusted t o reflect major changes that have occuri.eci in such indust,ries as soap and related products, with r e g 4 to the relative amounts of soap and synthetic detergents protlucwl in the respective gears. This procedure assumes that techiiology of consumption is uniform throughout industry, although this is not strictly true. Nore accurate estimates are possible thlough more detailed study of the individual process located in the XIT:L in comparison with the United States average. Considering that the tristate area has only 3.4% of the Irniteti States area and 20Y0 of the population, it is evident. in Tal)l(t111; which summarizes the estimate of this area's consumptioil, t h s t the tristate area consumes a disproportionate amount (27%) of the inorganic chemicals purchased by the manufacturing givups in the United StatPs. Attention is immediately drawn to the fact that it consumes 71% of the professional instruments subgroup, owing t o the location in the area of establisliinents engaged in the manufact ure of photographic film and chemicals. The textile hisliiiig mills which are highlj- concentrated in this area, coiisume $07, of the available United St,ates chemicals used in thip industry. The machinery in dust,^^., the stone, clay, and glass product,,?in-
TRISTATE CONSUMPTION
To arrive at the tristate consumption, the 1947 VRIIIW oi manufacturing industries, constituting i2.570 of the total shipments, irere first adjustrd to the 1950 national level as shown in Table 11. The 1950 levels were obtained by multipl~-ingthe 1947 levels by the ratio of the values of shipments for these two years ( 1 , 2 ) for each Census Bureau subdivision of the major industrv groups included in the manufacturing industries' classification. Adjustiiient,s were also made, where possible, to reflect, the differences in production of individual products in these years and for technological changes in some industries. Nest, the tristate consumption xas determined by multipl>-ing national levels by t,he degree of concentration of each industry subdivision as above, in the tristate area. This concentration mas measured by obtaining the ratio of the tristate area's value added by manufacture t o the national value added by manufacture (194i), which is considered t o be one of the best available
Figure 1. Major Consuming Points for Inorganic Chemicals i n Tristate Area
March 1953
INDUSTRIAL A N D Ef!GINEERING CHEMISTRY
Table 111. -1norganb Chemical by Manufactwins oroup. in Tristate Area, 1990 (Millions of dollars of pumhraea 1.o.b. plant) Pumh.aes
wwmul and allied pmducta M . ~ h i m r y(includa, alsotriul) Stone day and p h produota ~mf&onai instrumentea TarWa mill pmducta , Primary m e l d industn Patrolsum and OOSl P3"Cta Pawr and allied products Rubber pmducta Food aod kindred pmdducta Fabrioatad metal pmducta Leather and leather pmducta All olhen,S
$195.8 2a.4 22.4 16.4 18.8 12.8 11.5 9.8 4.6
Ye of Industry's Total Pumhaaas 28 36
3:40
11
?15:
18
4.0 2.7
20
2.0 2.2
29 31
1323.9
27
~
Tab1 manvfncturiru induntriea
Table IV. Distribution of Inorganic Chuniul Purehur by the Chemical and Allid M u & Group in the TrLbto h, 1950 (hlillLonaof dollan, of purrhaasa f.0.b. plant)
l'urch-a Psinta snd piimcnta n i o chsmiorla %ilia snd inorganios Miscellaneous chemluls Soap and de+rmnte and lode1 preparation.
$60.5 38.5 21.6
13.5 12.1 9.7 9.0 8.0 6.5 6.5 9.9
of Industry's T v h l Puurehasas 34
37
20
33 27 47 53
8 Fertilizers 15 Synthetic fibera 47 Insactloides 40 All othersD Total 5195.8 28 * Inaludes plastiea materials. aynthetio pbber, tanning malerial. Printing ink d u e and relatin. camoreased and bqus6ed m. ~
531
dustry, chemicalsand allied products, and petroleum and c o d products in this area use from 24 to 36% of their United States supply of inorganic chemicals. Considering the concentration of imn and steel manufmture in Pennsylvania, the consumption of only 11% of the United States inorganic chemical requirements for the production of primary metals may appear low. HowL . ,(,&, ' ever, this is due to the lowconcentration of primary aluminum metal production, which is a major consumer of chemicals aa compared to iron and steel. If oply the iron and steel industry is considered, this area represents 40% of the United States inorganic chemicals consumed by the industry. The location of consuming points in the triatnte m a is shown in Figure 1, where the major consumiog points for inorganic chemicals were plotted. As might be expected, these loeations are close to the mnjor centers of population-New York City, northern New Jersey, Philadelphia, Pittsburgh, and BuEdo. Looking more closely at chemical and allied products in Table IV, we lind a very high consumption of inorganics by d m and toilet preparations, and explosives, 47 and 53% respectively, in this area. Similarly, high consumption in the manufacture of insecticides is also apparent. The consumption of inorganics in more strictly chemical industries ranges from one fifth to one third of the national consumption by these industries. For the purposes of this discussion, the detailed consideration of individual chemicals in the tristate area would have been a herculean task. For example, the original study of 1947 ( 8 ) included some 125 individual chemicals and families of chemicale. Those chemicals, which represent 80% of the purehaaes of the three major purchasing group, are shown in Table V. The approximate 3 and i :es of i 'en major indi-
Plant for Producing Hydrogen Peroxide and Other Active Oxygen Chemic& B d d o Ehctro-Chemid Co.. Ins., Niware N h . N. Y.
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INDUSTRIAL AND ENGINEERING CHEMISTRY
Table V. Ino-ic
Chemicab Purchased by the Three
Table VI. Seven Major Chemicals Puxhased in Tristatn
Ana,lssD
Major Industry RMhauing Groups (3)
(Amounti a10 dollsrs of pumhaaaa f.0.h. plant) Millions of A~pmtimute Dolhra Thouand Tom Titsnium diotide 54.8 80 SuUurio acid 28.0 1800 Cautio sods 25.6 490 20.5 m 80d.d Sodium phasphatos 18.5 125 Ammonia 18.7 170 9.4 m Cblorintl
(ChemiaaL liatad form 80% or mors of total dollsr purahsssa)
Chemicals and Allied Products Ammonia, ammoniating aolutions, smmonium nitrate (indudes ferWLer grade). -onium d a t e , m n i e oompounds, calcium compounds, aaustio potsah, asustia soda, chlorine and chlorine bleaohing aompounds, Dhrome pigments, copper sulfate, elemental pbwphom, ferroun and ferric oompounds, hydmohlorio acid. iodine. iron oxide pigments, litharge, litbopone. magmaium compounds, mixed soids, nitrio aoid, soda aah. sodium bichromate and chromste. sodium borate, aodium hydrodfids, sodium phosphatsa, sodium silicates, d f u r i c acid, titanium dioxide. sina oxide. d n o sulfate Primary Metals Induntry Aluminum oxide, ammonium ohloride, ferrous sulfate, ferric compounds. hydrochloric acid, msgnesium compounds. phosphoric acid, soda ash. sodium hichromate and chromate, sodium borate, sulfuris soid Stone. Cby. and Glass Produota Aluminum oxide, antimony compounds. arsenic compunda, bismuth nubnitrate. boric acid. aalaium carbonste, ahrome colors, litharge. lithium compounds,magnesium compounds. potassium carbonste. soda seh, sodium hiahromate and ohromte, sodium borate, aadium ailioates, sodium silicofluoride, sodium d a t e , zinc oxide
vidual inorganic chemicals used in the area are shown in Table VI. These estimates do not include captive use. Prior to the accessibility of the data in thia interindustry study, to determine the consumption of an individual chemical in a particular area it waa necessary generally t o determine: (1) the industries using the chemical, (2) the amount of chemical used by the industry, and (3)the concentration of industry within the area under consideration, The results of such a study on one particular chemical-mda aah-have been compared with the resulk obtained by the techniques used in thia paper; the former method indicates purchaeee of about 870,000 tom in the triatate area and the latter method, purchases of 900,000 tons in 1950.
Vol. 45, No. 3
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The agreement between these two estimates, which employ Werent fundamental approaches, is remarkable. Both estimates may be 15 t o 20% low for the year 1950, compared to a normal year, because of the strikes that occurred in the alkali industry. The total consumption of soda ash within the area, including captive me, may have been on the order of 1,000,000 tons in 1950. The exclusion of captive use in the interindustry study really has no commercial significance, as captive markets are not normally available to competitive produeem. For the purpaes of this paper only the manufacturing induatries have been considered, which, aa ahown in Table I, purchaeed about 72.5% of the UNted States supply of inorganics. In Table 111, thia industry group in the triatate area waa shown to have purchased (323,900,000 worth of inorganics, which would seem to indicate tbat the tristate area's total inorganic chemical purchases were on the order of $450,000,000 in 1950.
LITERATURE CITED (1) Bureau of the Census,
U. 8. Dept. of Commerce, "Annual Survey of Manufactures." 1949 and 1950. (2) Bureau of the C y w , U. 8. Dept. bf Commerae. "Cennun of Manufaotures, 1947. (3) Evan., W. D.. snd Ho5enberp, M.. Division of Interindwtw Emnomica, U. 5. Bureau of Labor Statistics. "Interindustry Relstion Study for 1947." for rsvier ootober 24, 1852.
A~~~~~
bar
ao. 1952.
Consumption of Organic Chemicals V. H.BODEN AND H.D. HUGHES CAP5IDE AND CN!3ON cHIo(IcIIIsCO.. DIVISION O? UNION CAPSDK AND CARBON COW., NEW ¶OR& N. Y
T h e Middle Atlantic a c (New ~ York. New J~rmy.and Pennsylvania) -presents 3.446 of the area of the United States. It has about 20% of the population, 24% of th. purOna income, and 26% of the manufacturing (m measured by "value added"). In value added L v mMufacturing chemic& and allied products, it accounts for aS% of the nation's total. It M estimated that about 28% of the orgemic chemic& produced in the United States am connrmd in the Middls Atlantic area and that this -tage in 1950 amounted to 51.940,OW.ooO. Indications am that the gmwth in the chemical consumption of the Middle varied Atlantic states will continue h a u s e of tha -'a - o m . stratwic l a t i o n , and large population. &meica's growing dep+ndence on international trade should exert a strong pull on industry to locate near the great ports and the gmat markets.
B
Y ANY means of meaaurement, the Middle Atlantic statas reprenent a great industrial wncentration and, cone+ quently, a d i v d e d cbemical wnnuming area. A few general emnomic influence are explored here, followed by some pertinent data on the chemical wnsuming industriea in thia area. IMPORTANT ECONOMIC FACTORS Tables I and I1 compare important economic factors in thk tristate area (New Jersey, New York,and Pennsylvania). It can be readily ~ e e nthat this is a progreseive area. Manufacturing, aa mwured by value added by manufacture, is a high 26.2% of national production. Expenditures for plant and equipment are %.a%, retsil d e a are 21.6%. Personal income is 24.3% and population ia 20.0%. The fact tbat this area represents but 3.4% of the total area of the nation makea the picture even more striking.
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