Chemical industry “optimistic”
16 Apr 2014
Optimism remains high in the UK chemical industry, according to the latest survey of business prospects by trade body the Chemical Industries Association (CIA).
Over half of the companies surveyed in March by the CIA expected sales to increase, and there was a renewed appetite for investment.
The percentage of companies expecting sales to increase (55%) is the highest for two years, with only 6% predicting a decline. On job numbers, a quarter of the companies surveyed expected equal numbers, half no change and a quarter of firms expected a decrease.
Business leaders across our sector are optimistic in what remains a very challenging trading environment
CIA chief executive Steve Elliott
There was further good news on Research & Development expenditure, with almost 90% saying they will hold steady or increase, while 40% of firms expected to increase capital investment, and 45% thought they would maintain their capital spend levels.
On planned investment, 39% said it was for capacity expansion, 16% for improving raw material and energy efficiency, 13% to raise environmental standards, and 32% for general maintenance and refurbishment.
“This latest set of results show that business leaders across our sector are optimistic in what remains a very challenging trading environment,” said CIA chief executive
Steve Elliott.
“The cost and security of energy have been major barriers to our companies. While we welcome the latest announcements in the Budget, the UK has to continue working harder to compete in a global playing field.”
