UK chemicals makers report upturn after “tough couple of years”

London – Figures released in May by the London-based Chemical Industries Association indicate a significant turnaround in the business performance of the UK chemicals sector.

Chemicals makers reported higher sales, higher production levels, and greater capacity utilisation during the first quarter of 2024 compared to the end of 2023. Looking ahead, over 50% of businesses anticipate higher sales and more than 40% expect an increase in new orders, production levels, and capacity utilisation.

However, more than 60% of businesses foresee labour costs worsening, while 47% anticipate increases in raw material prices.

"These latest results are positive, but the key question now is whether this marks the start of a sustained improvement,” said CIA chief executive Steve Elliott, noting that it’s been “a tough couple of years for the chemical industry."

"An upturn in our more immediate commercial fortunes is, of course, very welcome, but it doesn't mask the longer-term challenge of establishing a more compelling UK investment case for chemicals, cautioned Elliot.

And, he emphasised, given that four in 10 companies have moved their production outside of the UK, “we look forward to working with a new Government to address that urgent need."