NAICS 325 - Chemical Manufacturing

The Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry groups.

This subsector does not include all industries transforming raw materials by a chemical process. It is common for some chemical processing to occur during mining operations. These beneficiating operations, such as copper concentrating, are classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. Furthermore, the refining of crude petroleum is included in Subsector 324, Petroleum and Coal Products Manufacturing. In addition, the manufacturing of aluminum oxide is included in Subsector 331, Primary Metal Manufacturing; and beverage distilleries are classified in Subsector 312, Beverage and Tobacco Product Manufacturing. As is the case of these two activities, the grouping of industries into subsectors may take into account the association of the activities performed with other activities in the subsector.

• Transforms organic and inorganic raw materials into chemical products through chemical processes.
• Includes production of basic chemicals as well as intermediate and end products.
• Excludes chemical beneficiation in mining, petroleum refining, and some metal manufacturing.
• Supports industries such as defense, environmental management, and energy.
• Subject to regulatory compliance and standards for chemical safety and handling.
• Size standards vary but often include small businesses producing specialty chemicals.

• Manufacture of basic inorganic and organic chemicals.
• Production of specialty chemicals and chemical formulations.
• Development and supply of chemical intermediates for industrial use.
• Chemical synthesis for pharmaceutical and agricultural applications.
• Manufacturing of adhesives, coatings, and sealants.
• Processing of petrochemical feedstocks (excluding refining).
• Research and development of new chemical compounds and materials.
• Quality control and testing of chemical products.

• Large-scale chemical manufacturers producing bulk chemicals.
• Specialty chemical producers focusing on niche markets.
• Research and development firms specializing in chemical innovation.
• Small and medium enterprises providing custom chemical formulations.
• Contract manufacturers supplying chemicals under government contracts.
• Industrial chemical suppliers serving multiple sectors including defense and energy.