BUSINESS
INSIGHTS BY ALEXANDER H.TULLO
THE FUTURE OF JOBS? Entrepreneurship could be a key to the growth of the U.S. chemical industry at home
T
work to India as Bangalore scientists be come more sophisticated. Why wouldn't it? But the signs aren't all bad. As long as the U.S. continues to be a gigantic consumer market, it will always have a petrochemi cal industry For example, the large con sumer market in the U.S. has led to an elab orate refining infrastructure, which makes the U.S. a competitive place to produce propylene and derivatives. Moreover, the petroleum-based chemical industry will remain as competitive in the U.S. as it is anywhere, perhaps more so because of economies of scale in production sites and infrastructure.
HE NEWS HAS BEEN BLEAK. EVERY outside the US. to cut costs. "The former issue of C&EN in October broke Soviet Union is filled with world-class sci news about job cuts at U.S. com entists who are happy to work for $300 a panies: some 375 at Crompton, month," he said. "The same conditions ex 500 at Ashland, 4 0 0 at Great ist in China and India, and we're actively Lakes Chemical, 6 0 0 at Eastman Chem recruiting these talented individuals in the ical, 100 at Omnova Solutions, and a cut pursuit of new products." ofup to 9% of Monsanto's workforce. The Former General Electric CEO Jack F. number of chemical jobs in the U.S. has Welch has coined the 70:70:70 rule, ac ANOTHER POSITIVE is the U.S.'s entrepre declined for six out of the past seven neurial culture. According to a survey done cording to the Indian publication Business months, according to the Labor Depart World. The rule calls for outsourcing 70% this year by Babson CoUege, the U.S. had the ment, and over a one-year period, the US. 11th highest rate of entrepreneurial activi of GE's workload, 70% ofwhich would be chemical industry lost 17,900 positions. ty— 10.5%—out of 37 countries surveyed offshore, and 70% of that offshore work and is the highest among G8 nations. would be done in India. The justification in many of these cas es has become all too familiar. Mark P. BulEntrepreneurship in chemistry— anecWith its new John F. Welch Technolo dotally at least— seems to be strong. Many riss, chief executive officer of Great Lakes, gy Centre in Bangalore, India, GE Plastics issues of C&EN contain profiles of en gave a typical apology. "We have been has been able to double its worldwide re trepreneurs. One recent profile was of a monitoring economic conditions over the search staff to 4 0 0 while only increasing retired Hoechst Celanese executive, who last several quarters," he explained. 'And its total budget by 40%. G E says India is had begun his career as a chemist, getting unfortunately, the long-anticipated bene teeming with qualified scientists, many of back to the bench with secondhand lab fits of a rebounding economy have not yet them trained in the developed world. oratory equipment in rented space materialized." GE says cutting-edge polymer research (C&EN, Oct. 6, Page 17). He managed to In addition to the bad economy, raw ma is still done at its Niskayuna, N. Y, corpowin a $25,000 prize from Lilly's Interial costs have been high. Natural noCentive scientific problem-solv gas prices, which dictate the price of ENTREPRENEURIAL ACTIVITY ing website for coming up with a ethane, hit record levels last Febru two-step synthesis of 4-(4-hydroxyU.S. just missed being in the top 10 worldwide ary, giving the U.S. a particular dis phenyl)butanoic acid. This issue of advantage. These factors, combined .* - < \ : \ /-" . 3-,s
