Editor's Page
Facts & Figures Most of this issue of Chemical & Engineering News is devoted to this year's version of Facts & Figures, the magazine's unique annual presentation of the essential hard data of the chemical industry. It represents a lot of hard work. Involving contributions from more than half of the magazine's editorial staff members, it is the only such comprehensive compilation available to those who wish to know, in quantitative detail, what is happening, and what has been happening, in the chemical industry. Facts & Figures is the yearly capstone to C&EN's role of being the premier source of data on, and analysis of, the strategic parameters that determine both the health of the chemical industry and the welfare of the tens of thousands of chemists who work for it. The chemical business is unusual in that it does not have a central trade organization that gathers and disseminates the basic data of its operations. Parts of the industry—such as chlor-alkalies, fertilizers, plastics, and man-made fibers—are served by their own wellrespected statistical services. But for the industry as a whole, data gathering mostly consists of the efforts of various governmental agencies. This situation gives particular value to Facts & Figures. It offers the only timely compilation of the data available from these various industry and government sources. But to help fill in the gaps, it also contains extensive data gathered throughout the year by C&EN staff members. For instance, this issue of Facts & Figures presents the data that C&EN has been developing for the past several years on the capacity utilization rate for 29 individual chemical products. It also contains an analysis of trends in labor productivity and in unit labor costs for chemicals. Facts & Figures has been considerably expanded this year—to 32 pages from the 26 pages for last year. Most of the data on the domestic industry now cover the past decade, 1968 to 1978. And in all cases data are presented so that comparisons either between years or between related operations are readily apparent. No data are presented in isolation. What does this massive compilation of data tell us of the chemical industry in 1978? And what does it augur for 1979? According to assistant managing editor David Kiefer, who coordinated this year's Facts & Figures, 1978 was a generally healthy year for the U.S. chemical industry. Chemical production was higher than ever before and by a considerable margin. Sales and earnings both made considerable gains and the large chemical trade balance grew again. Also, chemical industry employment moved onto new high ground. But, as Kiefer points out, selling prices, sluggish growth in productivity, and stagnant profitability remained persistent problems. Early indicators for 1979 were very strong for chemical makers. 1978 ended with a strong surge. And through the first quarter chemical production was still growing at a sizable and steady rate. Also in this first quarter chemical companies earned 3 6 % more than they did in the first quarter of last year on a sales gain of 2 0 % . And it appears that capital spending by the basic chemical industry will be 13% higher this year than it was last. Spending on research will likely increase 1 0 % , enough to ensure at least a little real growth. Also, employment advertising in C&EN is currently running at a very high rate. However, the signs that there will be a recession by the fourth quarter are growing. For instance, shipments of man-made fibers, a reliable indicator of what is in store for chemical makers in general, probably weakened in May. But it is too early for too much gloom. This issue of Facts & Figures indicates that there is a lot of inherent strength in the chemical industry today. It has recovered well from the worst of the upsets of the 1974-75 recession. Some key parameters, such as capacity utilization, are in much improved shape. So if some sort of recession does develop, chemical makers are in fairly good shape to ride it out without massive disruption. Michael Heylin, Editor
Views expressed on this page are those of the author only and not necessarily those of ACS
June 11, 1979 C&EN
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