Basic Chemical Manufacturers NAICS 3251

May 20, 2026 - EPA Shuts Down Risk Assessment Program

• The EPA is defending its decision to shut down the Integrated Risk Information System (IRIS), a chemical risk assessment program created in 1985 that critics say overstated hazards for certain substances, and ordered its regulatory offices to review and potentially reverse actions based on its hazard findings. EPA officials argue the changes will improve scientific consistency and reduce regulatory burdens without weakening existing environmental laws or enforcement. For chemical manufacturers, the move could reduce compliance uncertainty and limit the impact of risk assessments that industry groups viewed as overly conservative. Manufacturers may benefit from fewer regulatory restrictions, lower compliance costs, and a more streamlined chemical review process. However, environmental and public health groups warn the changes will put Americans at risk of toxic exposure. The debate highlights ongoing tension between the Trump administration’s aggressive deregulatory agenda and desire for stricter oversight of the chemical manufacturing sector.
• The war in Iran is driving significant disruption and volatility across global chemical markets, with implications for US chemical manufacturers, ChemAnalyst News reports. Supply chain interruptions, especially the closure of the Strait of Hormuz, are restricting shipments of critical feedstocks and finished chemicals, tightening global supply and pushing up prices. Prices for major chemicals have surged, including urea (+12–17%), ammonia (+5–11%), methanol (~+7%), and sulfur (~+6%), while natural gas costs have also risen sharply, increasing production expenses. Disruptions have led to plant outages, reduced operating rates, and force majeure declarations in petrochemical markets, particularly for products like styrene and polymers. For US manufacturers higher input and energy costs may pressure margins, but constrained global supply and buyers seeking alternative sources could support stronger pricing power and demand for domestic production. Overall, the conflict is increasing uncertainty, volatility, and cost pressures across the chemical value chain.

• 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 rose 5.6% in April compared to a year ago, after rising 2% in the previous April-versus-April annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for basic chemical manufacturers have risen sharply year to date due to a combination of higher input costs, supply chain disruptions, and geopolitical pressures. Employment by the industry shrank 3.2% year over year in March, while the average wage at basic chemical manufacturers rose 5% over the same period to $41.86 per hour, $0.40 shy of its high in September of last year, BLS data show.