Listen to This Episode Here:
Chief Economist Martha Moore of the American Chemistry Council joins Victoria Meyer to unpack the latest economic realities and policy challenges shaping the chemical industry. Martha shares insight from ACC’s member surveys, discusses key drivers behind current market trends, and covers what’s keeping executives awake at night—from rising raw material costs to global trade uncertainty.
Victoria and Martha discuss the following:
- Martha’s path from a STEM-focused upbringing to Chief Economist at ACC.
- The three pillars driving chemical demand: consumer spending, business investment, and exports.
- The sharp rise in raw materials and logistics costs for chemical manufacturers.
- What ACC’s members and sentiment surveys reveal about today’s top business challenges.
- The effect of international trade policy, tariffs, and China’s rising influence on the industry.
- Why innovation and reshoring US manufacturing are vital for future growth.
- Leadership lessons for executives: focus on agility, long-term strategy, and building resilience.
Killer Quote: “Chemistry is foundational to our economy, and being able to communicate that message is one of the top things we do. I try to help people make the connection between chemistry and the experiences they’re having in their everyday lives.” —Martha Moore
Other Links:
Watch This Episode on YouTube Here:
Navigating Economic Shifts and Industry Trends with Martha Moore, Chief Economist at American Chemistry Council
In a year marked by shifting macro trends and ongoing global uncertainty, leaders in the chemical industry are seeking clear signals about growth, risk, and resilience. On this episode of The Chemical Show, host Victoria Meyer and guest Martha Moore tackled these very issues, from demand drivers and export dynamics to policy priorities and the importance of innovation. Here, we break down their conversation, highlighting what matters most for industry professionals navigating 2026 and beyond.
Subscribe To The Chemical Show On Your Favorite Platform
Insights from The Chemical Show with Martha Moore, Chief Economist, American Chemistry Council
The Economic Landscape: Three Pillars Driving Chemical Demand
Chemical industry growth stands on three key pillars, according to Martha: consumer spending on goods, investment in equipment and infrastructure, and exports. Each tells a different story this year.
- Consumer Spending: This has been mixed, defined by the “K-shaped economy.” Higher income consumers are sustaining growth while mid-to-lower income groups are showing caution, stretching budgets and, in some cases, pulling back on goods purchases. Overall consumer spending is expected to grow by 2.1% in 2026, down from 2.6% in 2025. Still growth, but more moderate and uneven.
- Business Investment: Resilience in business investment is coming from sectors like AI, data centers, power, and LNG. As Martha notes, “all of those factories, when built, will require chemistry.” Notably, data centers themselves are significant chemical consumers, from wiring insulation to the 500+ chemicals that go into making a semiconductor chip.
- Exports: Export activity has picked up, now up 4% compared to the prior year, reflecting a recovery from the pandemic’s disruptions. Still, volatility in global markets, especially with pressures from China and supply chain shocks, demands constant vigilance.
Challenges on the Horizon: Costs, Logistics, and Trade Uncertainties
Recent surveys of American Chemistry Council members tell a clear story. Top concerns for chemical companies are:
- Raw material costs—rising sharply as the number one pain point, cited by 75% of members, up from 48% the previous year.
- Transportation and logistics costs, flagged by 71% of members, nearly double from 37% in 2025.
- Trade uncertainties, which remain a persistent worry.
These challenges underscore the industry’s exposure to global and domestic disruptions, whether it’s a war, tariffs, or a supply chain bottleneck.
Policy, Trade, and the Push for Competitiveness
Advocating for thoughtful policy remains at the core of ACC’s role. Martha points to chemical management and targeted reforms to the Toxic Substances Control Act (TSCA) as the top legislative priority. Effective chemical management, implemented consistently and based on strong science, is essential for both innovation and global competitiveness.
Trade policy is a close second. The uncertainty created by changing tariffs and non-market behaviors, particularly from China, poses a continuous challenge. More than half of US chemical imports are intra-company transfers (sourcing materials not produced domestically) which makes stable trade policy vital for continued value creation in the US.
Building Influence: Communicating Impact Inside and Outside the Industry
Changing perceptions about the chemical industry and communicating its value to policymakers is a constant task. Martha encourages leaders to connect chemistry to everyday experiences like cell phones, car trips, and even the paint on the wall. With over 500,000 high-paying jobs and a quarter of US GDP reliant on chemistry-dependent products, the numbers reinforce the message: this is a foundational, not peripheral, sector.
Looking Forward: Optimism and Pressure Points
There’s cautious optimism. The momentum behind reshoring manufacturing and ongoing investment in US facilities signals opportunity for future growth and increased demand for chemicals. The US industry’s track record in innovation, from new molecules to advanced materials and cleaner processes, sets it apart.
Yet, uncertainty remains. Demand from key end-use markets and continued competitive pressure from China, who are projected to hold nearly half of global basic chemical capacity by 2030, will test the industry’s adaptability.
Final Takeaway: Keep the Long View
Victoria and Martha close with this advice: leaders must remain nimble and keep their eyes on the decade ahead. The next structural uplift is expected post-2027, but decisions made now on investment, innovation, and policy engagement will set the stage for who thrives when conditions improve.
For chemical industry professionals, the message is clear: anticipate change, focus on resilience, and never lose sight of the fundamental impact chemistry has on business, policy, and daily life.
About Martha Moore:
Chief Economist – American Chemistry Council (ACC)