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CHEMICALS, PLASTICS &

RUBBER SECTOR

Published April 2015

Prepared by:

CHEMICALS, PLASTICS AND RUBBER INDUSTRY

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Industry NAICS LQ Employment Establishments Wages, Salary and Proprietor Earnings

Basic Chemical Manufacturing 3251 1.60 4,901 74 $39.84

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing 3252 5.54 10,570 50 $41.92

Pesticide, Fertilizer and Other Agricultural Chemical Manufacturing 3253 0.62 465 21 $49.77

Pharmaceutical and Medicine Manufacturing 3254 0.35 2,010 41 $39.71

Paint, Coating and Adhesive Manufacturing 3255 0.78 972 41 $32.37

Soap, Cleaning Compound and Toilet Preparation Manufacturing 3256 1.55 3,351 55 $25.83

Other Chemical Product and Preparation Manufacturing 3259 2.06 3,422 68 $28.10

Plastics Product Manufacturing 3261 1.23 13,899 262 $21.30

Rubber Product Manufacturing 3262 3.26 8,846 74 $25.68

Total – – 48,438 686 $33.84

Source: EMSI

TN’S CHEMICALS, PLASTICS AND RUBBER CLUSTER (2016)

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 Chemical Manufacturing Industry is 1.55x the national average and also above the Southeast average. Similarly, the LQ for Plastics and Rubber Products Manufacturing is 1.62x greater than the national average. Tennessee has the highest employment concentration in the Southeast for the following industries:

◆ Artificial and Synthetic Fibers and Filaments Manufacturing (LQ=15.06)

◆ Explosives Manufacturing (LQ=6.62)

◆ Rubber Product Manufacturing for Mechanical Use (LQ=5.06)

◆ Plastics Plumbing Fixture Manufacturing (LQ=3.83)

◆ Custom Compounding of Purchased Resins (LQ=3.72)

*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

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

A

A

AJG

G

CG

GC

E

I

BF HF

TOP 10 INDUSTRIES IN THE SECTOR BY EMPLOYMENT (2016)Industry/NAICS/Employment Source: EMSI

Artificial and Synthetic Fibers and Filaments Manufacturing/325220/7,937

All Other Plastics Product Manufacturing/326199/6,849

Tire Manufacturing (except Retreading)/326211/3,264

Rubber Product Manufacturing for Mechanical Use/326291/3,087

Plastics Material and Resin Manufacturing/325211/2,305

Other Basic Inorganic Chemical Manufacturing/325180/2,196

Toilet Preparation Manufacturing/325620/2,083

Pharmaceutical Preparation Manufacturing/325412/1,795

Rubber and Plastics Hoses and Belting Manufacturing/326220/1,419

Synthetic Dye and Pigment Manufacturing/325130/1,507

Custom Compounding of Purchased Resins/325991/1,324

Plastics Plumbing Fixture Manufacturing/326191/1,084

Plastic Pipe and Pipe Fitting Manufacturing/326122/1,041

Urethane and Other Foam Product (except Polystyrene) Manufacturing/326150/1,039

CHEMICALS, PLASTICS AND RUBBER INDUSTRY

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SOC Code Description Employment

11-1021 General and Operations Managers 46,946

11-3051 Industrial Production Managers 5,331

17-2112 Industrial Engineers 7,845

19-4031 Chemical Technicians 1,929

43-5071 Shipping, Receiving and Traffic Clerks 17,615

49-9041 Industrial Machinery Mechanics 7,646

49-9071 Maintenance and Repair Workers, General 29,813

51-1011 First-Line Supervisors of Production and Operating Workers 15,231

51-2092 Team Assemblers 63,937

51-4021 Extruding and Drawing Machine Setters, Operators, and Tenders, Metal and Plastic 1,883

51-4031 Cutting, Punching and Press Machine Setters, Operators and Tenders, Metal and Plastic 6,454

51-4072 Molding, Coremaking and Casting Machine Setters, Operators, and Tenders, Metal and Plastic 3,367

51-8091 Chemical Plant and System Operators 1,204

51-9011 Chemical Equipment Operators and Tenders 1,563

51-9023 Mixing and Blending Machine Setters, Operators, and Tenders 3,515

51-9041 Extruding, Forming, Pressing and Compacting Machine Setters, Operators, and Tenders 2,351

51-9061 Inspectors, Testers, Sorters, Samplers and Weighers 13,029

51-9111 Packaging and Filling Machine Operators and Tenders 10,054

51-9197 Tire Builders 728

51-9198 Helpers – Production Workers 16,752

53-7062 Laborers and Freight, Stock, and Material Movers, Hand 95,233

53-7064 Packers and Packagers, Hand 21,118

Source: EMSI

TOP OCCUPATIONS FOR CHEMICALS, PLASTICS AND RUBBER (2016)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 104 project commitments in the chemicals, plastics and rubber sector to create 8,088 new jobs, with capital investment totaling $4.17 billion (2011-2016).

15%

Tennessee exports

in the chemicals,

plastics and rubber

manufacturing

sector have grown

by 15 percent

since 2010

CHEMICALS, PLASTICS AND RUBBER INDUSTRY

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

Hankook Tire Co., Ltd. 1,800 800,000,000 Montgomery October 2013

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

Hicks Plastics Company, Inc. 202 10,410,000 Knox March 2015

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

SaarGummi Tennessee 161 24,623,973 Giles October 2015

DTR Tennessee, Inc. 150 9,000,000 Claiborne March 2016

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

MAJOR PROJECTS

TOP EXPORT MARKETS FOR CHEMICALS, PLASTICS AND RUBBER PRODUCTS FROM TENNESSEE (2015)

1 MEXICO $866,648,582

2 CANADA $789,560,380

3 CHINA $690,187,013

4 NETHERLANDS $443,843,728

5 SOUTH KOREA $270,673,583

6 BELGIUM $263,001,613

7 JAPAN $244,013,730

8 BRAZIL $141,200,983

9 TAIWAN $133,213,412

10 HONG KONG $126,643,458

11 GERMANY $102,198,168

Source: U.S.A. Trade

1

2

3

411

6

8

9

75

10

CHEMICALS, PLASTICS AND RUBBER INDUSTRY

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Industry NAICS Location Quotient Employment*

Artificial and Synthetic Fibers and Filaments Manufacturing 325220 15.06 7,937

Explosives Manufacturing 325920 6.62 945

Synthetic Dye and Pigment Manufacturing 325130 5.08 1,507

Rubber Product Manufacturing for Mechanical Use 326291 5.06 3,087

Plastics Plumbing Fixture Manufacturing 326191 3.83 1,084

Custom Compounding of Purchased Resins 325991 3.72 1,324

Tire Manufacturing (except Retreading) 326211 3.33 3,264

Rubber and Plastics Hoses and Belting Manufacturing 326220 2.98 1,419

Other Basic Inorganic Chemical Manufacturing 325180 2.76 2,196

Plastics Material and Resin Manufacturing 325211 1.97 2,305

Source: EMSI

TOP 10 INDUSTRIES BY LOCATION QUOTIENT (2016)

GLOBAL APPEALExports of chemicals, plastics and

rubber from Tennessee

2011 $5.29B

2012 $5.42B

2013 $5.59B

BY THE NUMBERS

48,400Tennesseans employed

in the sector

686Establishments across

the state involved in the sector

13,900Tennesseans employed

in plastics product manufacturing,

an increase of 28% since 2010

– well above the national average

of 11%

10,570Tennesseans involved

in resin synthetic rubber,

artificial synthetic fibers

and filaments manufacturing,

No. 1 among states

2014 $5.76B

2015 $5.30B

2010 $4.67B

CHEMICALS, PLASTICS AND RUBBER INDUSTRY

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FOREIGN DIRECT INVESTMENT

There are 104 foreign-based establishments in the industry in Tennessee that employ 17,000 people and have invested over $5.44 billion. Japan accounts for nearly 40 percent of the total FDI investment for this sector. Other major countries investing in the sector include Korea, United Kingdom, France, and Germany.

Five countries

account for

82.6% of all FDI in the

state for the

sector

Japan: $2.16B

United Kingdom: $896.2M

Korea: $800M

France: $391M

Germany: $244.4M

All Other: $949.7M

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 86.9 percent to 88.3 percent in just five years (2010-2015). Tennessee’s growth rate ranks No. 10 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 24.8 percent to 27.3 percent over this same time period. Tennessee’s growth rate ranks No. 6 nationally for the largest increase over this time period.

Graduates in engineering, engineering technologies and engineering-related fields have grown by 25.2 percent in just five years (2010-2015), now totaling more than 3,500 statewide.

STEM and STEM-related completions at Tennessee institutions were approximately 31,200 in 2015, which is an increase of 23 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: 15,000

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

HANKOOK TIRE AMERICA CORPORAITON.Primary City: Clarksville, NashvilleCorporate Employment: 1,950

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

IDENTITY GROUP HOLDINGS CORPORATIONPrimary City: CookevilleCorporate Employment: 940

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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CIP Code Program Regional Completions (2015) #

26.0202 Biochemistry 120

26.0101 Biology/Biological Sciences, General 1,357

52.0201 Business Administration and Management, General 4,858

52.0101 Business/Commerce, General 905

14.0701 Chemical Engineering 231

41.0303 Chemical Process Technology 23

41.0301 Chemical Technology/Technician 8

40.0501 Chemistry, General 420

40.0599 Chemistry, Other 12

15.0000 Engineering Technology, General 523

15.1501 Engineering/Industrial Management 110

01.1001 Food Science 75

14.3501 Industrial Engineering 37

15.0612 Industrial Technology/Technician 129

52.1101 International Business/Trade/Commerce 70

48.0501 Machine Tool Technology/Machinist 169

15.0613 Manufacturing Engineering Technology/Technician 33

14.1901 Mechanical Engineering 457

51.1401 Medical Scientist 18

26.0502 Microbiology, General 8

52.0205 Operations Management and Supervision 78

26.1001 Pharmacology 23

44.0401 Public Administration 110

41.9999 Science Technologies/Technicians, Other 57

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