Globalization Task Force Report

Committee on Professional and Member Relations (P&MR)

The chemical enterprise – both scientific research and industrial production – has been globalizing. In the current political context, and as part of a much larger context, the term “globalization” has taken on connotations of moving work that had previously been done in the United States to other countries. In fact, the movement has been both out of and into this country (the term, “offshoring,” is also used; it is a bit narrower in meaning, and refers to a domestic company utilizing foreign resources to support a domestic rather than a global business). Real data is hard to come by, but in general, there is some indication that more has gone out than come in (see tables). Of course, the concern has been much greater with the outflow, and there is much anecdotal evidence in the economy as a whole of U.S. facilities closing with work shipped to other countries, and many reports of U.S. companies making major R&D investments as well as manufacturing investments in such low wage countries as China and India.

These issues have been studied for some time by the Council Committee on Economic and Professional Affairs (CEPA). There is also a developing national debate underway, with sharply divided opinions. An excellent description of trends and events leading to accelerating globalization is given in the book, The World is Flat, authored by the journalist Thomas L. Friedman. He takes the optimistic view that overall, the results will be positive and of benefit to the United States. On the other side, the recent book, Take This Job and Ship It: How Corporate Greed and Brain-Dead Politics Are Selling Out America, by North Dakota Senator Byron L. Dorgan, highlights the dangers to the current job prospects and future economic health of the U.S. and its people.

Whatever the final outcome will be, there is no doubt that globalization of the chemical enterprise is underway. Clearly, there are limits to what an organization like the ACS can do about broad social and commercial trends, but at the very least, there will be transitional difficulties and we should look for ways to help our members deal with them. Thus, the Globalization Working Group was established by the Board Committee on Professional and Member Relations, comprising Board members Dennis Chamot, chair, Bill Carroll, Madeleine Joullie, Anne O’Brien, and Howard Peters. The remainder of this report presents the various ideas for ACS action that were identified by the working group, along with suggestions for appropriate ACS units that could be asked to follow up.

A. Education

The rapid globalization of both the chemical research enterprise and chemical industry – both broadly defined - require changes in chemical education. The very phrase, “chemical education,” may be too narrow to encompass the full implications of a fluid, global chemical enterprise. In addition to dealing with chemistry as a basic, enabling science, educators need to deal more explicitly with the multidisciplinary nature of much of modern research. In addition, an introduction to cultural diversity needs to be a part of a comprehensive college-level curriculum, as major advances today can come from any part of the world.

Unlike some other scientific disciplines, chemistry has long presented new graduates with a majority of job opportunities in industry (basic chemicals, pharmaceuticals, cosmetics, pigments, plastics, analytical services, etc.). With many of the larger companies developing an interest in placing new R&D facilities in China, India and other countries, new graduates may need to be directed to domestic opportunities in smaller companies as well as more traditional employers. In any case, educating new chemical professionals for today’s workplace requires giving them not only a good knowledge of basic chemistry but also a solid foundation for flexibility. That should include a serious introduction to industrial chemistry and business economics. This recommendation has been made repeatedly by many people for a long time, with little real effect overall. Current global developments do not allow for continued complacency. Rather, academia needs to recognize its responsibility to students and make real change.

There are a variety of things that ACS and its constituent units can do in the education field to help our members deal with the continuing challenges of globalization of chemical R&D and production. Below are several suggestions:

1. Encourage universities to add significant information about industrial chemistry and the chemical industry (broadly defined) to undergraduate programs, and to develop and present courses on these topics at the graduate level. A task force comprising representatives from CPT, SOCED, Corporation Associates, CEPA, YCC, and the I&EC and Chemical Education divisions, assisted by staff from the Education and Membership & Scientific Advancement Divisions, should be created to recommend and develop specific activities. Those could include convening meetings of chemistry department heads, deans, and industrial representatives; developing symposia to help disseminate information about successful efforts (e.g., Joel Shulman’s course, “Preparing for Life after Graduate School”); preparing materials for insertion in texts and teaching materials that highlight the global nature of the industrial chemical enterprise.

2. Encourage discussion of cultural diversity, and how to deal with chemists from other cultures. Address this topic at leadership conferences, and encourage divisions to develop programs on these issues, for example, Chemical Education, Professional Relations, Small Chemical Business, I&EC. Refer this to DAC and to the ACS Membership Division. This should also be addressed to the Committee on Science, the Office of International Activities, and the Department of Diversity Programs.

3. In order to compete successfully globally, the U.S. needs a more science literate populace. Hence, improvements need to be made in teaching science at the K-12 level, which also includes improving the qualifications of teachers in these grade levels. The Education Division and OLGA should continue efforts to increase federal budgets in these areas, as well as maintain contact with organizations directly involved with improving science education. Also, ACS could advocate for the creation of more government funded domestic research institutes, both to maintain the U.S. research lead in various fields as well as to compete with similar efforts by foreign governments. The Office of Community Activities and the Committee on Community Activities could help local sections work with local school systems, either by preparing supplementary materials for teachers to use or promoting the use of materials prepared by the Education Division. They could also help directly by putting interested local members in touch with the schools.

B. The Chemical Business World

As industrial, academic and economic activities develop in India and China, companies from around the world have looked to those countries as sources of lower cost labor and as developing markets for their products. Most of the large European and American chemical companies have “globalized” their businesses, that is, established or expanded research, development, manufacturing, sales, marketing and customer service operations in these countries. Some companies that are not global operations for similar reasons have outsourced some of their activities from a primarily Euro- or US-centric business to business services located in developing countries.

Some people, including chemists, find this rapid expansion in the developing world troubling. They are concerned that new laboratories and manufacturing operations will be built in those countries, and as a minimum, utilization of chemists in the US will be stagnant, or in the extreme, will dwindle. Pointedly, they fear laboratories closing here and moving to other countries. Our understanding of globalization and outsourcing is incomplete. There are few reliable statistics on “jobs lost” or “jobs gained” as a result of globalization, especially in chemistry. Whether the problem is real overall, or just a perception at this point, the concerns are real and could affect career selection by US students.

4. Corporation Associates (CA), whose members represent those in the Society nearest to the decision to expand or contract laboratories and research both here and abroad, should conduct a session to address the question: “Are US research jobs moving to Asia?” and “What is the future for chemical research in the US?” As an adjunct, CA might also address things ACS might do to help make the US an even more desirable place to locate research operations. A joint meeting with members of CEPA could also provide a useful dialogue.

5. The Department of Career Development & Management and CEPA should work with external partners, including employment agencies, to provide discounted training in soft-skills areas such as management, communications, personal strength assessment, project management, etc., to assist members in obtaining placement (or in developing their careers).

6. Career Development & Management, Industry Member Programs, and C&EN On-Line should provide overview articles on the changing patterns in the global employment environment. For example, aggregate articles from C&EN that provide overviews on different pockets of industry/careers: specialty chemicals, biotech, instrumentation, analytical services, nanotechnology, large pharma, etc. While these articles are easily available through C&EN, they can be “re-delivered” through a special page on chemistry.org or some other web presence site that focuses on careers in industry.

C. Employment and the Small Chemical Business World

A growing proportion of jobs in or related to chemistry are in small and medium sized companies (defined by the U. S. Bureau of Labor Statistics as one with fewer than 500 employees). Access to information on small companies would benefit members seeking employment, but is also much harder for individuals to obtain on their own. The ACS can be very helpful here. The feasibility and merits of alternative information resources need to be investigated, and the best ways to facilitate member access to information on small companies, and small company contacts, should be investigated.

A majority of chemists find job opportunities through web resources. ACS can assist members by steering them towards helpful, reliable web resources that provide information, “how to” paths, and insights into career self management.

Networking is the second most common method – a particularly critical one with respect to smaller companies. Improving networking opportunities should be a high priority in the redesign of the ACS web presence, and the provision of information on networking and networking resources would be a valued service to those seeking employment

Several possible services and activities could be considered:

7. ACS staff, working with CEPA, should consider purchasing or creating a database for listing smaller companies in the chemical, pharmaceutical, and other chemically related industries, and providing access to members of appropriate information through the ACS web site. Also offer links to useful resources to connect members with small companies or contacts. Such an effort should also include the Small Chemical Businesses Division.

8. Reposition ACS career placement tools to better meet the needs of small companies who do not visit universities or meetings to recruit, but who use networks and the Internet (CEPA, staff of Membership & Scientific Advancement Division, CEPA’s Business Advisory Board, IT).

9. Encourage local sections to actively solicit information about job opportunities in the area, and also offer assistance to job seekers. LSAC and staff should collect and distribute regularly reports of successful programs from around the country. LSAC, CEPA and Membership Division staff should meet at least annually to share information and ideas in these areas.

Members of the Globalization Task Force of the Board Committee on Professional and Member Relations

Dennis Chamot (Task Force Chair)
Bill Carroll
Madeleine Joullie
Anne O’Brien
Howard Peters
Kent Voorhees (Chair, P&MR)
David Harwell (Staff)
Theresa Laranang-Mutlu (Staff)