CBA Q4 report shows jump in chemical sector optimism

The CBA’s quarterly survey reveals the percentage of respondents reporting improvements in orders increased substantially during the last quarter of 2023. In all, 29% signposted rises, compared to only 5% during the previous three months.

Sales too showed positive development, with 21% reporting improvements in the last quarter of the year, more than doubling the 9% from the previous period. And the evidence is that this will continue when figures are released for the next quarter, the first of 2024.

Asked for their expectations for that period, 38% had stated they expected supply chain improvements.

Employment prospects were more muted but show no expectation of reductions while more than a quarter of respondents expected to give increased training opportunities. 

CEO of the association Tim Doggett (pictured) was upbeat saying: “Following what seemed to be a general downturn and cooling in the market throughout 2023, but particularly in Q3, the latest supply chain survey does suggest a degree of increased optimism, which will hopefully continue throughout 2024.”

However he offered one note of caution regarding the global shortage in freight containers and its effect upon supply chains, influenced by the worsening situation affecting Suez Canal traffic in particular.

“One significant aspect that has changed is a huge increase in the reporting of logistics issues, which is not surprising given the ongoing and very concerning situation in the Red Sea and the resulting rerouting of vessels,” he said.

His comments were reflected in member responses: whereas only 5% saw this as an issue in Q3 of 2023, in the latest survey the number had leapt to 29%. Allied to this the longer running issue of escalating shipping costs loomed still larger with a huge 79% citing this as a problem for import and export operations.