Chemical industry capital spending rose by 67% in the seven years to 2017 to US$33.8 billion, with the chemical sector accounting for half of manufacturing sector construction spending, the ACC data shows. Industry capital spending in the US is expected to total US$48 billion in 2018, nearly two-and-a-half times the level in 2010, thanks largely to the shale boom.
US tax reform, signed in December 2017, is expected to boost chemical capital investment. The reform reduced corporate tax from 35% to 21% and allows companies to claim 100% rebate on certain capital expenditure for the first five years. This should boost investment in major chemical projects.