Chemical distributors boost economy

As Rhode Island continues on the path to economic recovery with unemployment rates ticking down and gross domestic product moving up, the chemical-distribution industry is proud of the contributions we have made in the Ocean State.

Chemical distributors – companies that formulate, blend, repackage, warehouse, transport and market the chemical products produced by large-quantity manufacturers – supply products to industries as diverse and essential as building and construction, medical technology, water treatment and many others.

Chemical distribution may not be the first thing to come to mind when thinking about Rhode Island’s economy, but our industry has a significant impact on the state. Distributors account for nearly $127 million in total economic output and provide good jobs that pay well. The average annual wage in chemical distribution in Rhode Island is more than $85,000, approximately 120 percent higher than the state’s median wage.

Chemical distributors from across the state and region recently met for three days in Providence. And, as is the case any time you have a meeting among chemical distributors, safety and security were high on the list of topics for discussion.

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While chemical distribution is a critical link in the American economy and employs tens of thousands of people across our country, most National Association of Chemical Distributors members are small businesses that on average have 26 employees and generate $26 million in sales. Large companies often have the additional resources required to bring in outside consultants or firms who can help them establish processes to ensure safety. Smaller companies work on tighter margins and may not have the capacity to bring in outside counsel or hire dedicated staff, even though they place the highest priority on the health, safety and security of employees, communities and the environment.

This year, the NACD celebrates the 25th anniversary of NACD Responsible Distribution, the association’s mandatory, third-party-verified program that establishes a proven framework for the health, safety, environment and security aspects of chemical distribution. For JR Hess & Co. – a chemical distributor based in Cranston – and other small businesses like it, responsible distribution provides the resources needed to ensure they are responsible partners to their suppliers and customers and responsible neighbors in the communities where they operate.

All NACD members are required to participate in the program and many, like JR Hess, play a leadership role in their communities as resources for information. They provide similar assistance and guidance to local, state and federal legislators on technical issues relating to the safe handling, storage, transportation, use and disposal of chemical products. Owing to the success and rigor of responsible distribution, the chemical-distribution industry is twice as safe as all manufacturing combined and safely delivers 80 tons of product every minute.

Rhode Island’s chemical distributors should be applauded for voluntarily taking these steps.

By doing so, these businesses will continue to thrive and provide good-paying, locally focused jobs, while remaining committed to operating in a safe and responsible manner. •

Peter Hess is president of Cranston-based JR Hess & Co., and Eric R. Byer is president of the National Association of Chemical Distributors.

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