Industry Watch

Chemicals: Foreign outlay for acquiring and establishing chemical operations in the US decreased to $4 billion in 1996, or 5% of all foreign investment funds going into US industry as a whole, compared to the $12.5 billion invested in chemicals in 1995. Foreign investment in industrial chemical facilities rose by one-third to $800 million in 1996. Of all foreign spending on US chemical organizations in 1996, 80% came from Europe.

Source: Today's Chemist at Work

Industry: The US high-technology industry, now 6.2% of GDP, is the driving force behind economic growth, according to a report by the American Electronics Association and the Nasdaq stock market. US high-tech exports have nearly doubled since 1990, fueling the growth. The high-technology sector now employs the largest number of people in manufacturing and has the most sales. In size, it is only second in the US to public health services.

Source: Financial Times

Pulp/Paper: US demand for paper and paperboard will grow 2.5% annually, reaching 111 million tons by 2000, aided by the moderation of paper prices since they reached a cyclical peak in 1995, as well as growth in population, disposable personal incomes, and new businesses. Threats to growth include the penetration of plastics in packaging applications and increasing consumer use of non-print media. While sales for paperboard and other paper products are expected to grow by 2.7% and 3.2% annually through 2000, respectively, newsprint sales are expected to fall 0.1% annually during that time.

Source: InTech Magazine

Semiconductors: Orders received by semiconductor suppliers have increased 5% per month for the past eight months. September orders of $1.75 billion were 125% above orders in September last year, and 4% above August's. Shipments of $1.6 billion in September were 46% above last year's, and 6% above August's.

Source: Investor's Business Daily

Pie Chart:  Top 100 Multinational Companies: Foreign Sales by

 Industry

Other    27%

Oil & Mining    20%

Automotive    17%

Electronics    15%

Chemicals & Pharmaceuticals    10%

Food and Beverage    9%

Construction    1%

Metals    1%

Source: Unctad