Basic Chemical Manufacturers NAICS 3251

Nov 20, 2025 - Chemical Manufacturers Oppose Big Rail Merger

• The proposed merger of the Union Pacific and Norfolk Southern railroads has raised alarm among major industrial users, particularly chemical manufacturers, according to the American Chemistry Council. The ACC warns that combining these two rail giants could significantly reduce competition, raising freight costs and undermining service reliability across critical supply chains. Rail is a linchpin for many manufacturing operations, delivering raw materials to plants and finished goods to markets. With fewer railroads, manufacturers could be stuck with limited shipping options and higher rates, putting US production at a competitive disadvantage globally. The ACC is advocating for stricter regulatory review and calling for policy interventions to preserve rail-to-rail competition rather than enabling greater railroad consolidation. The proposed $85 billion deal was approved by the companies’ shareholders in November but faces opposition from several states' attorneys general.
• A transport tanker leak spewed dangerous amounts of anhydrous ammonia, a key ingredient in fertilizer, in a small Oklahoma town in November, forcing mass evacuations and hospitalizations, ABC News reports. The cause appeared to be a mechanical failure on a valve or a faulty seal, said police. For manufacturers of agricultural chemicals, the accident surfaced concerns around supply-chain risk, regulatory liability, and public safety. It demonstrated how failure in handling or transportation of inputs like anhydrous ammonia can lead to costly emergencies, reputational damage, incur regulatory costs, and disrupt delivery to farms. It’s a warning to firms to review and reinforce safety protocols, invest in reliable transport networks, and stay ahead of compliance standards to maintain product flow and public trust. Chemical manufacturers in the ag-input space must prioritize operational resilience and risk mitigation given how one accident can ripple across logistics, regulatory exposure, and end-customer supply reliability.

• As chemical manufacturers adopt cloud-based analytics and remote monitoring, cyber criminals are pivoting from traditional IT infiltration to exploiting misconfigured cloud access and weak credential controls, Chemical Processing reports citing a new study from data security firm Rubrik Zero Labs. The State of Data Security 2025: A Distributed Crisis report concludes that while the transition to multi-cloud hybrid environments is a milestone in the history of business computing, it comes with a high cost in terms of security risks. Threat actors increasingly are exploiting weaknesses like the data sprawl in multi-cloud environments and employing evolving techniques such as identity-based strategies, which now account for most attacks. The Rubrik data cites a 26% increase in cloud intrusions and 79% malware-free attacks. Chemical manufacturers that adopt cloud-enabled operations without understanding the associated risks are vulnerable to extortion, data breaches, and data damage, per the Rubrik report.
• Producer prices for basic chemical manufacturers dipped 0.4% in August compared to a year ago, after falling 2.1% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices, which peaked in mid-2022, are gradually recovering from low demand as the industry destocked from record high inventory levels in 2023 and 2024. Employment by the industry shrank 1.6% year over year in July, while the average wage at basic chemical manufacturers rose 4.9% over the same period to a new high of $42.21 per hour, BLS data show.