UK chemical makers to "ride out economic storms of 2023"
1 Aug 2023
Nearly 60% of companies saw a fall in sales in second quarter of 2023, London-based CIA reports
London - UK chemcials manufacturers have seen sales fall "dramatically" during the first six months of 2023, the Chemical Industries Association (CIA) has reported.
In its latest survey of its members, London-based CIA found that nearly 60% of companies experienced a decline in sales in the second quarter, up from 33% in preceding quarter.
On a more positive note, the association reported that over half of respondents predicted sales to increase in 2024, "led by European, and increasingly global, exports."
UK chemical businesses, who export 90% of what they make, "are taking all measures to ride out the economic storms of 2023," said Steve Elliott, the CIAs chief executive.
"The ongoing reduction in immediate demand and the lack of visibility of any near-term improvement in that demand is of huge concern," added Elliot.
Welcoming the more optimistic outlook for 2024, the CIA leader called for "a political commitment to long term policy stability and a competitive funding landscape for innovation and investment.”
Meanwhile, CIA economist Michela Borra noted that supply-chain pressures and some running costs "are easing with over 40% of businesses seeing a decrease in input prices and almost 50% a decrease in energy costs.”
However, she warned: “The biggest challenge this quarter was weakening demand, followed by labour costs. Demand and labour costs are expected to worsen but we hope that input-related issues continue to improve.”
