NAICS 325180 Quarterly Industry Report
Other Basic Inorganic Chemical Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325180Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325180 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the basic inorganic chemical manufacturing sector, drawing on data from the U.S. Census Bureau[5] and Bureau of Labor Statistics[6] employment records. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325180 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the other basic inorganic chemical manufacturing industry.
Industry Definition & Overview
Other Basic Inorganic Chemical Manufacturing (NAICS 325180) encompasses establishments primarily engaged in manufacturing basic inorganic chemicals excluding industrial gases and synthetic dyes and pigments. Products include inorganic acids such as sulfuric, hydrochloric, nitric, and phosphoric acid; bases including sodium hydroxide and potassium hydroxide; inorganic salts such as sodium carbonate, sodium chloride compounds, and potassium compounds; and other inorganic intermediates including metal oxides, chlorides, and specialty compounds. According to the U.S. Census Bureau[5], approximately 380 establishments with over 650 locations employ more than 41,000 workers, generating annual revenues driven by demand from agriculture, water treatment, metals processing, and downstream chemical manufacturing.
Sulfuric acid represents the highest-volume inorganic chemical by production weight, serving fertilizer manufacturing, petroleum refining, and metals processing applications. The Bureau of Labor Statistics[6] reports production roles including chemical plant operators managing reactor systems and distillation columns, quality control chemists testing product purity and concentration, maintenance technicians servicing corrosion-resistant process equipment, and environmental compliance technicians monitoring emissions and wastewater treatment systems.
Per the SBA Office of Advocacy[7], the industry includes large commodity chemical producers supplying bulk acids and bases alongside smaller specialty inorganic chemical manufacturers producing catalysts, electronic-grade chemicals, and water treatment compounds for niche market applications. Environmental compliance with EPA[8] chemical manufacturing regulations and process safety management under OSHA[9] standards represent ongoing operational requirements for establishments handling hazardous inorganic chemicals.
What's Included in This Industry
- Valuation multiples benchmarked to basic inorganic chemical manufacturers
- Revenue and EBITDA trends for domestic inorganic acid, base, and salt production
- SBA lending data and financing terms for NAICS 325180
- Comparable transaction data from recent inorganic chemical company acquisitions
- Industry risk factors including raw material costs, energy prices, and environmental compliance
- Workforce composition and labor cost benchmarks for inorganic chemical operations
- Regional market analysis covering inorganic chemical production centers
- Capital expenditure benchmarks for reactor, storage, and environmental control systems
- Growth projections tied to agriculture, water treatment, and electronic chemicals demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Basic Chemical Manufacturing | 3251 |
| NAICS Industry | Other Basic Inorganic Chemical Manufacturing | 32518 |
| National Industry | Other Basic Inorganic Chemical Manufacturing | 325180 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325120 | Industrial Gas Manufacturing | Industrial gas manufacturers producing chlorine, hydrogen, and other gases through electrolytic and chemical processes that overlap with basic inorganic chemical production |
| 325130 | Synthetic Dye and Pigment Manufacturing | Synthetic dye and pigment manufacturers consuming inorganic chemical intermediates including metal oxides and acids in pigment synthesis and processing operations |
| 325311 | Nitrogenous Fertilizer Manufacturing | Nitrogenous fertilizer manufacturers consuming ammonia and nitric acid produced by basic inorganic chemical operations for fertilizer formulation and production |
| 325510 | Paint and Coating Manufacturing | Paint and coating manufacturers consuming inorganic pigment compounds, mineral extenders, and chemical additives produced by basic inorganic chemical operations |
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers sharing chemical process infrastructure and co-locating with inorganic chemical facilities in integrated chemical production complexes |
| 325920 | Explosives Manufacturing | Explosives manufacturing establishments consuming inorganic acids and oxidizers produced as primary products by basic inorganic chemical manufacturing operations |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 11.9% | 76 |
| 2 | California | 6.9% | 44 |
| 3 | Ohio | 5.3% | 34 |
| 4 | Illinois | 5.2% | 33 |
| 5 | Louisiana | 5.2% | 33 |
| 6 | Georgia | 5.0% | 32 |
| 7 | New York | 3.9% | 25 |
| 8 | Tennessee | 3.9% | 25 |
| 9 | Indiana | 3.7% | 24 |
| 10 | Pennsylvania | 3.4% | 22 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
24
Total SBA Loans
$11.5M
Total Loan Volume
$480K
Average Loan Size
9 yrs
Average Loan Term
9.05%
Average Interest Rate
96
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Basic inorganic chemical manufacturers seeking SBA financing typically qualify under the SBA size standards[10] for NAICS 325180, which set the threshold at 1,000 employees for small business classification. The SBA 7(a) loan program[11] provides up to $5 million for business acquisitions, process equipment upgrades, and working capital for raw material inventory. Industry CDC/504 loan program[12] offers long-term fixed-rate financing for reactor systems, storage infrastructure, and environmental compliance equipment. Lenders evaluate product diversification, customer concentration, and environmental compliance history when underwriting inorganic chemical manufacturing transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Fifth Third Bank | 16 | $7.5M | $471K |
| 2 | Live Oak Banking Company | 8 | $4.0M | $500K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a basic inorganic chemical manufacturer?
Basic inorganic chemical manufacturers typically trade at 5x to 8x EBITDA, with specialty producers of electronic-grade chemicals and water treatment compounds commanding premium multiples. Per U.S. Census Bureau[5] data, commodity acid and base producers face more cyclical valuation patterns while specialty inorganic chemical companies maintain more stable earnings profiles.
What SBA loan options are available for inorganic chemical manufacturers?
The SBA 7(a) loan program[11] provides up to $5 million for acquisitions and process equipment, while the CDC/504 program[12] finances reactor systems, storage tanks, and environmental control infrastructure. Specialty inorganic chemical producers with diversified customer portfolios typically receive favorable lending terms.
What are the primary products in basic inorganic chemical manufacturing?
Sulfuric acid, sodium hydroxide, chlorine, hydrochloric acid, phosphoric acid, sodium carbonate, and potassium compounds represent the highest-volume products. Per U.S. Census Bureau[5] product shipment data, sulfuric acid production alone exceeds 30 million metric tons annually, making it the highest-volume chemical manufactured in the United States.
How do energy costs affect inorganic chemical manufacturing?
Electricity-intensive processes such as chlor-alkali electrolysis and natural gas consumption for ammonia production make energy a significant cost driver. Per U.S. Energy Information Administration[13] industrial energy data, energy costs can represent 30 to 50 percent of total production costs for energy-intensive inorganic chemical processes.
What environmental regulations govern inorganic chemical manufacturing?
Manufacturers must comply with EPA[8] regulations under the Clean Air Act, Clean Water Act, and RCRA governing hazardous waste management, with process safety management under OSHA[9] for facilities handling threshold quantities of highly hazardous chemicals. Acid mist, chlorine, and wastewater treatment requirements represent primary compliance areas.
What is the SBA size standard for basic inorganic chemical manufacturers?
The SBA[10] classifies businesses with up to 1,000 employees as small for NAICS 325180 other basic inorganic chemical manufacturing. Many specialty inorganic chemical producers operate well under this threshold, qualifying for SBA lending programs and government procurement preferences.
What growth markets exist for inorganic chemical manufacturers?
Water treatment chemicals, electronic-grade purity compounds for semiconductor manufacturing, battery materials for energy storage, and specialty catalysts represent primary growth segments. Per U.S. Census Bureau[5] industry data, infrastructure investment in water and wastewater treatment systems continues to drive demand for treatment chemicals across municipal and industrial applications.
What are key acquisition factors for inorganic chemical businesses?
Acquirers evaluate product specialization, environmental compliance history, customer concentration, process safety track record, and raw material sourcing arrangements. Per Bureau of Labor Statistics[6] industry data, companies with specialty product lines serving growing end markets and clean environmental compliance records command stronger acquisition valuations.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]EPA epa.gov
- [9]OSHA osha.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]U.S. Energy Information Administration eia.gov
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