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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
CHEMICALS, PLASTICS AND RUBBER INDUSTRY
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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).
CHEMICALS, PLASTICS AND RUBBER INDUSTRY
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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
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CHEMICALS, PLASTICS AND RUBBER INDUSTRY
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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 $3.13 billion (2011-2014).
19.5%Tennessee exports
in the chemicals,
plastics and rubber
manufacturing
sector have grown
by 19.5 percent
since 2010
CHEMICALS, PLASTICS AND RUBBER INDUSTRY
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Company New Job Commitments Capital Investment ($) 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
CHEMICALS, PLASTICS AND RUBBER INDUSTRY
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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
CHEMICALS, PLASTICS AND RUBBER INDUSTRY
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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
CHEMICALS, PLASTICS AND RUBBER INDUSTRY
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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
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