chemicals, plastics & rubber sector · tire manufacturing (except retreading) 326211 3,206 3.43...

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CHEMICALS, PLASTICS &

RUBBER SECTOR

Published April 2015

Prepared by:

CHEMICALS, PLASTICS AND RUBBER INDUSTRY

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With numerous advantages including an integrated transportation system, a highly skilled labor force, and a high concentration of raw materials, Tennessee has a chemicals, plastics and rubber industry that is among the largest in the U.S.

Tennessee’s diverse roster of companies in the chemical, plastics and rubber sector manufacture products that include tires, antacids, allergy medicine, and a host of consumer products. The sector employs approximately 45,000 workers across the state. Tennessee ranks 12th in the nation for total employment in the sector.

Kingsport-based Eastman Chemical Company, a Fortune 500 company, is a specialty chemical manufacturer that sells chemicals, plastics and fibers around the world. Bridgestone Americas, which maintains its North American headquarters in Nashville, operates manufacturing facilities in the state that make truck and bus tires. Chattanooga’s Chattem Inc. produces a range of well-known consumer products such as Rolaids, Icy Hot and Gold Bond Powder.

During the administration of Gov. Bill Haslam, the chemicals, plastics, and rubber sector has experienced a period of investment and growth. From 2011 through 2014, the state received 73 commitments from companies in the sector to create 4,571 new jobs and invest $3.13 billion in capital.

Those projects include a November 2014 announcement by Bridgestone Americas to create 607 new jobs and invest $232 million in moving its North American headquarters to downtown Nashville. In May 2013, Eastman Chemical Company

announced plans to invest $1.6 billion in its manufacturing facility in Kingsport, with plans to add 300 employees over a period of seven years.

With nearly 12,000 workers, plastics products manufacturing is the largest subsector in the state’s chemical, plastics and rubber industry, based on employment. Tennessee is ranked fourth in the nation for employment in the subsector, which has grown by 10.3 percent over the last three years.

Major employers in the subsector include M-Tek Inc., a subsidiary of a Japanese auto parts manufacturer that makes door trim panels, rear shelves, trunk trim, dash insulators and plastic injection trim. The company, which has had manufacturing operations in Tennessee for more than 30 years, recently announced it would consolidate its headquarters at a new facility in Murfreesboro.

Tennessee ranks first in the nation for employment in the resin, synthetic rubber, and artificial synthetic fibers and filaments manufacturing subsector. The state ranks first in the Southeast for employment in rubber product manufacturing for mechanical use; rubber and plastics

hoses and belting manufacturing; and synthetic dye and pigment manufacturing subsectors.

Chemical exports from Tennessee totaled $4.8 billion in 2013, and exports of plastics and rubber products totaled nearly $750 million. Chemical exports have grown by 53 percent since 2009, while exports of plastics and rubber products have increased by 42 percent.

A key to the state’s strength in the chemicals, plastics and rubber sector is a strong supply of skilled workers. The state’s efforts to align colleges and universities with employers to create top-tier education programs will continue to make Tennessee’s workforce among the best in the nation.

Graduates from Tennessee schools in engineering, engineering technologies, and engineering-related fields have grown by more than 30 percent between 2008 and 2013, and now total more than 3,500 statewide. Also, the total number of graduates has increased by 24.1 percent during Gov. Haslam’s administration. STEM and STEM-related completions at Tennessee institutions totaled approximately 28,800 in 2013, an increase of 31 percent in just five years.

OVERVIEW


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Industry NAICS Employment Establishments Avg. Hourly Wage, Salary and Proprietor Earnings

Plastics Product Manufacturing 3261 11,974 266 $20.37

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing 3252 10,661 52 $41.76

Rubber Product Manufacturing 3262 8,299 64 $24.52

Basic Chemical Manufacturing 3251 4,643 69 $38.47

Other Chemical Product and Preparation Manufacturing 3259 3,336 74 $27.99

Soap, Cleaning Compound and Toilet Preparation Manufacturing 3256 3,011 48 $22.00

Pharmaceutical and Medicine Manufacturing 3254 1,932 31 $41.03

Paint, Coating and Adhesive Manufacturing 3255 917 35 $33.83

Pesticide, Fertilizer and Other Agricultural Chemical Manufacturing 3253 423 20 $46.64

Total 45,195 659 $30.11

Source: U.S. Bureau of Labor Statistics and EMSI

TN’S CHEMICALS, PLASTICS AND RUBBER CLUSTER (2013)

BIG-NAME PLAYERS STRONG REGIONAL CONCENTRATION

Tennessee has a greater employment concentration for the chemicals, plastics and rubber sector compared to both the Southeast and nation. This is demonstrated by location quotient* (LQ), which demonstrates Tennessee’s concentration of workforce employed in the sector is 1.54x the national average and also above the Southeast average. Tennessee has the highest employment concentration in the Southeast for the following industries:

◆ Artificial and Synthetic Fibers and Filaments Manufacturing (LQ=15.89)

◆ Explosives Manufacturing (LQ=6.11) ◆ Rubber Product Manufacturing for Mechanical Use (LQ=4.66) ◆ Plastics Plumbing Fixture Manufacturing (LQ=4.11) ◆ Custom Compounding of Purchased Resins (LQ=3.41)

*LQ is a ratio of proportion of an area’s employment in an industry to that of the nation as a whole. LQ is a way of quantifying how concentrated a particular industry cluster or occupation is in a region as compared to the nation. LQ=1: national average. An LQ greater than 1 shows an industry composes a greater share of the local area employment than the national average (indicating strong concentration or specialization).


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A. American Industrial Partners,

Clinton, Franklin, Jackson

B. BAE Systems Ordnance Systems

Inc., Kingsport

C. Bayer, Cleveland, Memphis

D. Bridgestone Americas Tire Operation, Multiple Locations

E. Chattem Inc., Chattanooga

F. DTR TN Inc., Midway, Tazewell

G. DuPont Co., Chattanooga,

Old Hickory, Memphis, New Johnsonville

H. Eastman Chemical Company,

Kingsport

I. Nuclear Fuel Services, Inc., Erwin

J. Vi-Jon, Inc., Smyrna

TOP 10 INDUSTRIES IN THE SECTOR BY EMPLOYMENT (2013)Industry/NAICS/Employment

Artificial and Synthetic Fibers and Filaments Manufacturing/325220/8,113

All Other Plastics Product Manufacturing/326199/5,941

Tire Manufacturing (except Retreading)/326211/3,206

Rubber Product Manufacturing for Mechanical Use/326291/2,638

Plastics Material and Resin Manufacturing/325211/2,492

Other Basic Inorganic Chemical Manufacturing/325180/2,374

Toilet Preparation Manufacturing/325620/2,031

Pharmaceutical Preparation Manufacturing/325412/1,766

Rubber and Plastics Hoses and Belting Manufacturing/326220/1,387

Synthetic Dye and Pigment Manufacturing/325130/1,343

MAJOR TN CHEMICALS, PLASTICS AND RUBBER EMPLOYERSTop Companies, Tennessee Locations

A

A

AJG

G

CG

GC

E

I

BF HF


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SOC Code Description Employment

11-1021 General and Operations Managers 41,518

11-3051 Industrial Production Managers 4,502

17-2112 Industrial Engineers 6,864

19-2031 Chemists 1,030

19-4031 Chemical Technicians 1,699

51-1011 First-Line Supervisors of Production and Operating Workers 14,070

51-2092 Team Assemblers 45,968

51-4021 Extruding and Drawing Machine Setters, Operators, and Tenders, Metal and Plastic 1,599

51-4072 Molding, Coremaking and Casting Machine Setters, Operators, and Tenders, Metal and Plastic 2,969

51-8091 Chemical Plant and System Operators 1,267

51-9011 Chemical Equipment Operators and Tenders 2,330

51-9023 Mixing and Blending Machine Setters, Operators, and Tenders 4,550

51-9041 Extruding, Forming, Pressing and Compacting Machine Setters, Operators, and Tenders 1,843

51-9061 Inspectors, Testers, Sorters, Samplers and Weighers 12,288

51-9111 Packaging and Filling Machine Operators and Tenders 11,716

51-9197 Tire Builders 835

51-9198 Helpers – Production Workers 11,267

53-7051 Industrial Truck and Tractor Operators 16,330

53-7062 Laborers and Freight, Stock, and Material Movers, Hand 79,130

53-7064 Packers and Packagers, Hand 17,513

Source: EMSI

TOP OCCUPATIONS FOR CHEMICALS, PLASTICS AND RUBBER (2013)The state has a large, experienced workforce capable of operating in this sector.

THE FORMULA FOR GROWTH

During Gov. Bill Haslam’s administration, the Tennessee Department of Economic and Community Development has received 73 project commitments in the chemicals, plastics and rubber sector to create 4,571 new jobs, with capital investment totaling $3.13 billion (2011-2014).

19.5%Tennessee exports

in the chemicals,

plastics and rubber

manufacturing

sector have grown

by 19.5 percent

since 2010


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Company New Job Commitments Capital Investment ($) County Month and Year

Bridgestone Americas Tire Operations LLC 607 232,600,000 Davidson November 2014

Eastman Chemical Company 300 1,600,000,000 Sullivan May 2013

Cosmolab Inc. 250 40,000,000 Rutherford November 2013

ABC Technologies Inc. 230 25,500,000 Sumner July 2014

Vi-Jon Inc. 200 6,267,000 Rutherford January 2013

DN Plastics 100 9,600,000 Warren July 2014

3M Company 100 135,000,000 Anderson December 2014

Occidental Chemical Company 75 250,000,000 Humphreys July 2011

Olin Corporation 0 160,000,000 Bradley July 2011

Praxair Inc. 15 46,400,000 Shelby October 2011

Matheson Tri-Gas 65 40,000,000 Humphreys August 2011

MAJOR PROJECTS

TOP EXPORT MARKETS FOR CHEMICALS, PLASTICS AND RUBBER PRODUCTS FROM TENNESSEE

Canada $590.1M

Mexico $522.1M

China $805.6M

Korea $306.2M

Netherlands $286.2M

Japan $235M

Belgium $219.4M

Brazil $155.4M

Taiwan $162.3M

United Kingdom $140.7M


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Industry NAICS Employment Location Quotient*

Artificial and Synthetic Fibers and Filaments Manufacturing 325220 8,113 15.89

Explosives Manufacturing 325920 812 6.11

Synthetic Dye and Pigment Manufacturing 325130 1,343 5.11

Rubber Product Manufacturing for Mechanical Use 326291 2,638 4.66

Plastics Plumbing Fixture Manufacturing 326191 1,036 4.11

Tire Manufacturing (except Retreading) 326211 3,206 3.43

Custom Compounding of Purchased Resins 325991 1,144 3.41

Other Basic Inorganic Chemical Manufacturing 325180 2,374 3.04

Rubber and Plastics Hoses and Belting Manufacturing 326220 1,387 2.90

Plastics Material and Resin Manufacturing 325211 2,492 2.24

Source: EMSI

TOP 10 INDUSTRIES BY LOCATION QUOTIENT (2013)

GLOBAL APPEALExports of chemicals, plastics and

rubber from Tennessee

2010 $4.67B

2011 $5.29B

2012 $5.42B

2013 $5.59B

BY THE NUMBERS

45,000Tennesseans employed in the sector

659Establishments across the state

involved in the sector

12,000Tennesseans employed in plastics

product manufacturing, fourth-

highest among all states

10,600Tennesseans involved in resin,

synthetic rubber, and artificial

synthetic fibers and filaments

manufacturing, No. 1 among states


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FOREIGN DIRECT INVESTMENT

There are 133 foreign-based establishments in the industry in Tennessee that employ 16,790 people and have invested over $4.86 billion. Japan accounts for nearly 44 percent of the total FDI investment for this sector. Other major countries investing in the sector include Korea, the United Kingdom, France and Germany.

Five countries

account for

87.4% of all FDI in the

state for the

sector

Japan: $2.13B

Korea: $800M

United Kingdom: $792M

France: $314M

Germany: $213M

All Other: $617M

Source: TNECD

TN’S EDUCATION ADVANTAGE IN CHEMICALS, PLASTICS AND RUBBER

The percentage of Tennesseans (age 25-64 years) with a high school diploma or equivalent has increased from 85.6 percent to 87.8 percent in just five years (2008-2013). Tennessee’s growth rate ranks No. 1 nationally for the largest increase over that time period.

The number of Tennesseans (age 25-64 years) with a bachelor’s degree or higher increased from 23.9 percent to 25.9 percent over this same time period. Tennessee’s growth rate ranks No. 2 in the Southeast and No. 2 nationally for the largest increase over this time period.

Graduates in engineering, engineering technologies and engineering-related fields have grown by 30.2 percent in just five years (2008-2013), now totaling more than 3,500 statewide. Also, the total number of graduates has increased by 24.1 percent during Gov. Haslam’s administration.

STEM and STEM-related completions at Tennessee institutions were approximately 28,800 in 2013, which is an increase of 31 percent in just five years.

HEADQUARTERS AND CORPORATE-WIDE EMPLOYMENT

BRIDGESTONE AMERICAS INC.*Primary City: Multiple LocationsCorporate Employment: 45,000

EASTMAN CHEMICAL COMPANYPrimary City: KingsportCorporate Employment: 14,000

M-TEK INC.*Primary City: Manchester, SmyrnaCorporate Employment: 2,422

BUCKMAN LABORATORIES INC.Primary City: MemphisCorporate Employment: 1,500

IDENTITY GROUP HOLDINGS CORPORATIONPrimary City: CookevilleCorporate Employment: 900

THE BRYCE CORPORATIONPrimary City: MemphisCorporate Employment: 800

TECHMER PM LLCPrimary City: ClintonCorporate Employment: 585

RING CONTAINER TECHNOLOGIESPrimary City: OaklandCorporate Employment: 580

THE ALPHA CORPORATION OF TNPrimary City: ColliervilleCorporate Employment: 560

CHATTEM INC.*Primary City: ChattanoogaCorporate Employment: 536

* Notes North American headquarters


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Program Completions (2013) # Institutions Top Institution by Completions

Biochemistry 131 11 Middle Tennessee State University

Biology/Biological Sciences, General 1,329 39 East Tennessee State University

Business Administration and Management, General 4,843 64 The University of Tennessee-Chattanooga

Business/Commerce, General 866 15 Bethel University

Chemical Engineering 147 5 Vanderbilt University

Chemical Technology/Technician 4 1 Northeast State Community College

Chemistry Process Technology 216 1 Chattanooga State Community College

Chemistry, General 423 32 University of Memphis

Chemistry, Other 15 4 Belmont University

Engineering Technology, General 495 8 Pellissippi State Community College

Engineering/Industrial Management 132 3 The University of Tennessee-Chattanooga

Food Science 36 1 The University of Tennessee-Knoxville

Industrial Engineering 75 2 The University of Tennessee-Knoxville

Industrial Technology/Technician 121 7 Northeast State Community College

International Business/Trade/Commerce 80 13 University of Memphis

Machine Tool Technology/Machinist 82 12 Tennessee College of Applied Technology-Crump

Manufacturing Engineering Technology/Technician 18 1 Nashville State Community College

Mechanical Engineering 440 9 The University of Tennessee-Knoxville

Medical Scientist 11 1 Vanderbilt University

Microbiology, General 11 1 Vanderbilt University

Operations Management and Supervision 89 6 Pellissippi State Community College

Pharmacology 8 1 Vanderbilt University

Public Administration 132 7 Cumberland University

Science Technologies/Technicians, Other 85 6 Roane State Community College

Source: EMSI

HIGHER EDUCATION: RELATED PROGRAMS IN TENNESSEE FOR THE CHEMICALS, PLASTICS AND RUBBER SECTOR

chemicals, plastics & rubber sector · tire manufacturing (except retreading) 326211 3,206 3.43...

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