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The association has 270 member companies, and one-third of them responded to the questionnaire. According to the American Association of Organic Synthetic Chemical Manufacturers, the survey shows that US fine chemical companies will continue to respond positively to competition from emerging markets (mainly China, India, etc.). Emerging markets now account for about 22% to 25% of the global market for fine chemicals. Among them, China has the greatest potential for growth and is expected to maintain its leading position by 2007. Continuing to increase R&D investment is one of the priority measures for the US fine chemicals companies to meet the challenges.
In 2007, the ratio of R&D input to sales of fine chemical companies in the United States will average 8%, compared with 6.5% in 2005. In 2007, the number of fine chemical companies in the United States that planned to spend more than 10% of R&D on sales accounted for 22% of the total, compared with only 13% in 2005. The number of companies whose R&D input accounts for 2% to 10% of sales fell from 79% in 2005 to 68% this year. About 73% of companies surveyed said that the introduction of new products will be an important way to achieve profitable growth in 2007.
A member of the American Association of Organic Synthetic Chemical Manufacturers said that it will conduct more infrastructure investment and change its strategy of competing with emerging markets. The report said that US fine chemical companies want to increase sales revenue from the contract manufacturing business or organize sales around their products to achieve business growth.
The report also stated that 36% of the companies surveyed expected that the growth of total business sales will exceed 20% by the end of 2007; another 35% of companies surveyed expect that the total sales of the business will increase by 10% by the end of 2007. ~20%. Custom-made product manufacturers may be able to integrate alliances and partnerships rather than mergers and acquisitions.
U.S. Increases R&D Investment in Fine Chemical
At the end of 2007, the factors most influential to the US chemical industry will be competition from emerging markets. The second most important factor is the price of crude oil and natural gas. This is the conclusion of the latest survey report of the American Organic Synthesis Chemical Manufacturers Association. The report brought together a questionnaire from 94 member companies of the American Association of Organic Synthetic Chemical Manufacturers.