In the
latest survey of chemical and pharmaceutical businesses, companies reported a
strong start to 2016 and an optimistic feeling about the future. The Chemical
Industries Association quarterly business survey of member companies showed 95%
saying sales volumes remained at previous levels or increased, 90% saying
exports remained at previous levels or increased and 87% saying capital
expenditure and research & development spending remained at previous levels
or increased.
Looking to
the year ahead companies were optimistic with 88% expecting to maintain or grow
sales performance, 95% to maintain or grow exports, 87% to maintain or grow
R&D spending and 85% to maintain or grow capital expenditure.
Commenting
on the results, Steve Elliott Chief Executive of the Association said “We would
never be complacent, but our member companies appear to be bucking the trend.
The strong start to 2016 and the positive feelings about the year ahead are
encouraging for our sector and for the UK economy. Despite official data which
has reported low growth, poor manufacturing outlook and a trade deficit, the
chemical and pharmaceutical sector is working hard to meet the needs of
customers in the UK and across the globe”.
The survey
also asked what companies saw as threats to their performance. Higher raw
material and energy costs topped the list, with increased competition from
China, shrinking markets, increasing costs of legislative compliance and
uncertainty over the UK’s membership of the European Union all being
highlighted.
Ends
For
further information please call Simon Marsh 07951 389197 or Stephen Le Roux
07947 687882.
Notes
The
chemical and pharmaceutical industry adds £15 billion of value to the UK
economy every year from total annual turnover of around £50 billion. This
represents around 10% of the value added by the whole of manufacturing.
The UK is
a leading global chemical and pharmaceutical producer
The
chemical and pharmaceutical sector is the UK’s largest manufacturing exporter
with annual exports of close to £50 billion.
UK
Chemical manufacturing productivity, as measured by output per hour worked,
increased by 10% between 2008 and 2014, in contrast productivity increased by
2.5% in UK services sectors and increased by 5% for the whole of manufacturing
in the same period.