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chemical industry
By KAUSHIK PALICHA 1,131 views
BUSINESS

The US Chemical Sector has contributed immensely to the country’s GDP

For those who are unaware, the Chemical Industry is very important to any nation’s development. In the United States alone, it has contributed over five trillion dollars to its economy in 2020. This amount is equal to one-quarter of the nation’s gross domestic product. In the same year, the industry has given over four million people jobs, thereby reducing the rate of unemployment. According to a chemical manufacturing professional, Kaushik Palicha, this shows that the chemical sector plays an important role. Mr. Kaushik Palicha is a director at Ram Charan Company Pvt. Ltd. He’s the driving force that moved Ram Charan firm and two others from a traditional one to a modern one.

How exactly does the Chemical Industry contribute to the GDP in the US?

chemical industry

The Academies Report

In 2022, the United States National Academies submitted an analysis that took 24 months to make. The Academies set up a committee led by a chairman who is also an expert in the chemical industry. In the report submitted, the committee found out that the chemical industry has reduced the rate of unemployment.

They further stated that the chemical sector has gainfully employed millions of workers. Additionally, they elaborated that the industry has contributed millions of dollars to the economy. “Their report was influenced by the Royal Society of Chemistry analysis,” says Kaushik Palicha, a chemical industry worker.

About the United Kingdom Royal Society of Chemistry Report

The Society analyzed how the chemical sector affected the UK economy in 2010. While analyzing the economy, they realized that the sector increased the economy by 258 billion. This is at least a fifth of the United Kingdom’s gross domestic product. 

Additionally, another chemical council in the United Kingdom also submitted a report. The report says that the United Kingdom’s chemical industry chips in over 5 billion pounds in Research and Development yearly. This amounts to almost 23% of the money the UK expends on chemicals.

The Importance of the Chemical Sector in the United States

The United States economy is a big one that encompasses all industries in the country. According to Ram Charan Co Pvt Ltd manager, Kaushik Palicha, the chemical industry has improved the US economy. 

Furthermore, the chairman of the committee set up by the Academies emphasized how vital the government’s support is. If the administration increases its support of the chemical sector, the industry will grow more. They can do that by investing more in the research of chemicals and chemical-relates products. This will in turn help to improve the development of the country and sustain the environment.

Other Information in the Report

The Academies also stated that supporting research in the chemical industry will boost its economic value. This increase is however determined by the number of chemical goods and knowledge that were integrated into other industries. Moreover, the value of chemical patents and other chemical-related patents is higher than non-chemical ones. To be precise, from 2000 to 2020, chemical patents had a 14 percent stake in corporate patents. This means that during that period, its value was up to 23 percent of the total patents in the US.

Setbacks that affected the US Report

Despite the success of the two-year analysis, the committee still faced some setbacks. This includes inadequate value estimation of patents, data, data licenses, and data grants from the government. These have also affected other chemical researchers in the field of chemical research and analysis.

The Academies’ Recommendations

The committee set up by the Academies gave their recommendations after submitting the report. They said that chemical researchers that submit chemical proposals and grants should broaden the impact of their research statement. The impact should affect the environment positively instead of negatively. The Academies recommends that researchers should also be allowed to explain these impacts in their reports.

Further Recommendations

The committee suggested that the research statements should state the impact the Chemical Industry has on the environment in brief. And any actions taken to mitigate the effects of chemicals will still affect the sustainability of the environment. As a result, the committee tasked the United States chemical research sector and chemical unions to work hand-in-hand. According to Kaushik Palicha, these bodies can also work with professional bodies in the chemical-related sector. When they work together, all of them should make use of standard, accessible, and open-source methods. Similarly, these methods can be used to use, share, and save chemical experiment data.

How to Present the Data

Afterward, they should establish a data repository and standards. After doing that, publishing houses should tell research scientists to present every data associated with chemical experiments. The data should be submitted to data banks that are open-sourced.

Conclusion

Kaushik Palicha concluded that the chemical industry has made a huge contribution to the US economy. There is no denying that it has been a major employer of labor in the sector. This is why the US government should invest more in the industry. There should also be proper arrangements put in place to ensure the chemical industry doesn’t affect the environment. This will put the environment and society in a better place.