| The chemical industry is one of the largest and
most essential industries within the United States economy,
converting raw materials into more than 70,000 different products
for multiple industry sectors. The industry is composed of an array
of companies with products ranging from commodity and specialty
chemicals to pharmaceuticals and finished consumer products. The
chemical industry itself consumes 26 percent of its own output. In
the U.S., there are 170 major chemical companies operating
internationally with more than 2,800 facilities outside the U.S.,
and 1,700 foreign subsidiaries or affiliates. The industry employs
more than a million people domestically, with facilities in every
state.
The industry has largely recovered from the devastating effects
of two major hurricanes in 2005, however, key end markets, such as
residential construction are experiencing an ongoing downturn as
compared to previous years. Historically high prices for oil and
natural gas continue to significantly impact the industry as well,
forcing U.S. chemical makers to raise their own prices to
compensate, posing risks to the industry’s long-term
competitiveness.
Globalization, consolidation, and regulation are key factors
affecting the chemical industry. Foreign trade and investments
continue to be increasingly important to the chemical industry, as
demand from chemical markets in developing Asian, Middle Eastern,
and Latin American countries is growing faster than in Europe and
the United States. To meet demand, chemical companies are building
production facilities overseas, while many of their U.S.-based
customers are also relocating their operations to areas with lower
costs and faster growth. Extensive consolidation continues as
companies seek to gain greater efficiencies and technology, and to
meet increasing customer demands.
VRC provides its chemical industry clients with valuations of
real and personal property, as well as intangible assets. Our
clients have a significant investment in their assets and the
expertise of our professionals generates significant value-added
benefits. The work undertaken by our organization is conducted
considering the increasing levels of scrutiny seen in today’s
environment. The core services we provide include valuations for
financial reporting and tax purposes, as well as financial opinions
with respect to valuation, fairness, solvency, and capital adequacy
issues.
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