Chemical Distributors NAICS 4246

Sep 20, 2025 - Cyber Threats to Chemical Safety

• As the chemical industry adopts 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 companies that adopt cloud-enabled operations without understanding the associated risks are vulnerable to extortion, data breaches and data damage, per the Rubrik report.
• US chemical manufacturers saw new orders, production, and capacity utilization increase in the first quarter, according to the American Chemistry Council’s latest Chemical Manufacturing Economic Sentiment Index (ESI). The index – which tracks chemical companies’ assessment of their sales, production, and output — posted gains in Q1 despite weak customer demand in major markets and economic headwinds at home and abroad. But rising operating costs led chemical manufacturers to curtail capital spending in Q1 following a year and a half of growth. In contrast to positive first quarter sentiment, more than two-thirds of manufacturers polled were less optimistic about the next six months, citing rising costs for raw materials, energy, transportation and labor, according to ACC.

• EPA action to streamline the chemical review process could help bring new chemicals to market faster, Chemical Processing reports. The permitting process for new chemicals would accelerate with the repeal of a Biden-era amendment to the Toxic Substances Control Act (TSCA) that placed stricter requirements on the new chemicals review process. As part of the Trump administration’s deregulation efforts, the EPA has announced plans to reconsider the regulation governing the review of chemicals already in commerce. Also, the Biden-era amendment to the TSCA has come under fire by the industry and republican lawmakers who say it places unnecessary burdens on chemical manufacturers and refiners by slowing the permitting process and inhibiting the availability of chemicals. The EPA’s move to streamline chemical reviews came just days after the agency issued new guidance directing that any spending exceeding $50,000 requires approval from the Elon Musk-led Department of Government Efficiency.
• Producer prices for chemicals and allied products merchant wholesalers rose 6.8% in August compared to a year ago, after posting a 2.2% gain in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Wholesale prices, which peaked in 2022, are beginning to rebound from low demand as the industry destocked from record high inventory levels. In July, employment by chemical distributors shrank 1% year over year, while average industry wages fell 0.8% over the same period to $34.06 per hour, BLS data show. Despite their recent decline, average wages at chemical distributors are at historically high levels.