UK chemicals makers thrive, Brexit looms

London – In the first few months of this year, the UK chemicals and pharmaceuticals manufacturing sector saw its fastest growth in sales volumes in three years, a near-record rise in export volumes and continuing increases in capital and R&D spending.

These are the findings of the Chemical Industries Association’s latest survey of the sector, in which nearly 90% of companies reported sales volumes higher or at least on a par with the end of 2017.

Helped by a weak sterling, over 80% of companies said employment was stable or growing, while over 90% of respondents had increased or maintained capital spending levels and investment in R&D.

The industry also sees continuing opportunities in terms of new capacity, new products and the lower value of sterling, the London-based association reported 24 May.

“This level of performance is good for our industry and good for our country,” said Steve Elliot, chief executive of the CIA, which is currently focused on the continuing negotiations around Brexit, both within the UK and EU-wide.

These factors, warned the CIA chief, could “cut short” the industry’s currently strong performance.

With regard to the ongoing Brexit negotiations, he said “the lack of certainty could not just freeze future investment levels but start to contribute to a decline.”

And with government-level decisions now needed on issues such as trade, immigration and REACH, Elliot concluded: “Business will not wait forever to make investment decisions.”