Still the positive trend revealed by PIERS waterborne import-export trade statistics is good news for one of the top U.S. exporting sectors by value. Chemicals exports average almost $120 billion annually and account for 10 cents of every dollar in U.S. exports.
Included in this category are synthetic resins and plastics, synthetic rubber, polyethelyne, melamine and urea resins. PIERS statistics show trade volumes are growing fastest in commodities categorized as vinyl alcohol and PVC resins, with imports up 134% and exports up over 500% in the years 2000-2006. PVC - or polyvinyl chloride - is used in a variety of applications, including gramophone records (hence "vinyl records"). But more than half of PVC around the world is used in construction in the form of plumbing, siding, window frames and as a replacement for more traditional building materials such as wood, concrete and clay. While new housing starts have been plunging in the U.S., the global building boom, especially in Asia and the Middle East, will continue to drive demand.
A runner-up in the fastest-growing import category, toilet preparations, which grew 125% in 2000-06, provides some evidence of the ongoing structural shift in production facilities from higher- to lower-cost countries, says Andrews. "So far, portions of the chemicals industry have been affected by these trends to a lesser extent than other industries," the PIERS economist adds. "But as China and other countries move up the value-added chain in chemicals production, imports which we now forecast will drop in the near term could grow at a more rapid pace."
