WASHINGTON — Failure to modernize the country’s freight network will likely prevent the chemicals industry from aiding in economic growth, according to
a report by the American Chemistry Council unveiled on Capitol Hill a day after President Trump’s first address to Congress.
Over the next 10 years, the industry could experience an additional $23 billion on equipment to address congestion and delays. The industry also could spend $29 billion by 2025 for more expedited shipments, according to the report, which was prepared by PricewaterhouseCoopers.
“Unless resolved, logistics shortcomings across primary modes of transportation will greatly affect the chemical industry and its customers,” the report said.
Trucks were found to be the primary mode used by the industry. However, researchers determined that requirements on drivers’ age, hazmat endorsements, security tests, limits on driving hours-of-service and military credentials have complicated the distribution of chemicals along freight corridors.
“Chemical producers have struggled at various times with a shortage of skilled and certified drivers,” the report said. “Most industry experts do not see the driver shortage improving any time soon.”
For the report, researchers surveyed 68 chemical companies. With nearly 275 new projects and more than $160 billion in U.S.-based capital investment projects announced since 2010, the chemical industry is growing.
“The U.S. business of chemistry is growing like never before, but limitations across all modes of transportation are getting in the way of fully realizing this American manufacturing success story,” American Chemistry Council president and CEO Cal Dooley said.
