The country’s number one manufacturing exporter expects recent growth to continue. The chemical industry has projected increases in sales, employment, investment in research & development and capital expenditure over the coming 12 months. The Chemical Industries Association (the industry’s trade body) has published the results of its latest quarterly survey. The results show:

• 54% of companies expect sales to increase, 38% to remain at the same level
• Over 90% expect employment to grow or remain the same
• Over 80% will grow or maintain the heavy investment in research & development
• 83% will maintain or enhance current levels of capital expenditure
• For the first time in two years, more companies are expecting margins (essential for reinvestment) to increase rather than decrease.
• The survey also asked businesses for their views on the climate for innovation (a vital ingredient for a successful chemical industry and the wider economy) in the UK compared to other countries. This showed:

• Availability of skilled researchers – 19% thought it was good, 71% average and 10% poor
• Availability of technical staff 13% good, 54% average and 33% poor
• Government financial support – good 13%, average 52% and 35% poor
• University collaboration – good 43%, average 57%
• Customer/market collaboration good 39%, average 35%, poor 26%.

Commenting on the results, the Association’s Chief Executive Steve Elliott said; “ These results show that chemical businesses are continuing to underpin the country’s economic revival. The products and technologies made by our companies are essential to the automotive, aerospace and many other sectors. Britain needs a strong chemical industry to enable any chance of sustained growth”.

On the innovation figures, Elliott said; “There are some worrying signs concerning innovation. It is important the UK keeps pace with other countries in terms of  how we provide the right framework for companies and industries to innovate. A critical part of that is making sure there is enough skilled researchers and technical staff. Although I think Government is doing its bit, there is much more as a country we need to do as fewer than 20% of companies think there is good availability of the right people.”

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Notes to Editors:

The chemical industry in the UK:

• Contributes £75 million every day to the UK economy
• spends over £5 billion each year on research and development
• invests almost £2 billion a year in capital expenditure
• generates a trade surplus of £5 billion every year
• Provides employment for over half a million people in well-paid jobs

And is the nation’s number one manufacturing exporter

For an interview/further comment from Steve Elliott, please call Simon Marsh on 07951 389197