Improvements in production technology have reduced the need for workers in production; installation, maintenance, and repair; and material-moving occupations, which account for large proportions of jobs in the chemical industry. The application of computerized controls in standard production, and the growing manufacture of specialty chemicals requiring precise, computer-controlled production methods, will reduce the need for workers to monitor or directly operate equipment. Although production facilities will be easier to run with the increased use of computers, the new production methods will require workers with a better understanding of the use of the systems.

Foreign competition has been intensifying in most industries, and the chemical industry is no exception. The increase in international trade and rapidly expanding foreign production capabilities should intensify competition. Pressure to reduce costs and streamline production will result in mergers and consolidations of companies both within the United States and abroad. Mergers and consolidations are allowing chemical companies to increase profits by eliminating duplicate departments and shifting operations to locations in which costs are lowest. U.S. companies are expected to move some production activities to developing countries—those in East Asia and Latin America, for example—to take advantage of rapidly expanding markets.

The chemical industry invests billions of dollars yearly in technology to reduce pollution and clean up existing waste sites. Concerns about chemicals and the environment may spur producers to create chemicals with byproducts that are fewer or less dangerous, or that can be recycled or disposed of cleanly.

The factors affecting employment in the chemical manufacturing industry will impact different segments of the industry to varying degrees. The only segment projected to add jobs is the cleaning preparations, including soap, cleaning compounds, and toilet preparations segment, with an increase of about 3,200 jobs. The other chemical products segment is projected to lose about 33,000 jobs; the basic chemical manufacturing segment, about 31,000 jobs; and the synthetic materials segment, about 26,000 jobs.