Chemicals

Operation profile

The chemicals industry encompasses the production of basic organic and inorganic chemicals, synthetic rubber and fibers, pesticides and fertilizers, paints and adhesives, soaps, and cleaning compounds.

The representative operation modeled is a smaller producer of specialty chemicals in limited volumes for niche markets, such as the production of industrial and consumer cleaning products, solvents, adhesives, and fragrances. As detailed in the following table, this operation is characterized by:

  • Modest land and building requirements
  • Moderate initial machinery and equipment requirements
  • A workforce consisting of predominantly professional and technical staff, and skilled operators.
  • Moderate energy requirements.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Chemicals

Operation: Specialty chemicals manufacturing

Facilities requirements
   Owned industrial site - acres (12,141 m2)
3
   Size of factory - ft2 (4,645 m2)
50,000

Other initial investment requirements
   Machinery and equipment - US $'000
$14,000
   Office equipment - US $'000
$500
   R&D equipment - US $'000
$500
   Inventory - US $'000
$5,000
   Equity financing - % of project costs
50%

Workforce
   Management
5
   Sales and administration
11
   Customer support
5
   Production/non-dedicated product development
      - Professional, technical
34
      - Operators
33
      - Unskilled laborers
10
   Other
2
 
Total employees
100

Energy requirements
   Electricity: monthly consumption demand - kWh
300,000
   Gas: monthly consumption - CCF (116,997 m3)
41,300

Other annual operating characteristics
   Sales at full production - US $'000
$50,000
   Materials and other direct costs - % of sales
53%
   Other operating costs - % of sales
8%
   Investment in tax-eligible R&D - % of sales
2.1%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Chemicals
Operation: Specialty chemicals
North America – lowest cost cities
Country and CityIndex & Rank1
CAMoncton, NB91.63
 Fredericton, NB91.64
 St. John's, NL91.75
 Winnipeg, MB91.86
 Quebec City, QC92.07
MXMonterrey, NL87.71
 Mexico City, DF88.52
USShreveport, LA95.932
 Baton Rouge, LA96.233
 Montgomery, AL96.535
 New Orleans, LA96.536
 Savannah, GA96.637
 Omaha, NE96.638
 Mobile, AL96.740
 Gulfport-Biloxi, MS96.741
 Lexington, KY96.842
 Nashville, TN96.944
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide93.824
 Brisbane95.329
 Melbourne93.723
 Sydney94.427
FRMarseille95.128
 Paris95.531
GEBerlin96.434
 Frankfurt96.842
ITMilan93.925
 Rome94.126
JPOsaka96.739
 Tokyo97.045
NLAmsterdam93.422
 Rotterdam93.421
UKLondon95.330
 Manchester92.19
1  Rank among 111 featured cities.

 
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