UK chemical firms report pick-up in orders, sales

Crewe, UK- In its latest quarterly survey, the Chemical Business Association*(CBA) found a markedly improved view of market prospects across it UK membership base.

The CBA's poll of chemicals business managers showed the percentage of respondents reporting increases in orders rose substantially during the final quarter of 2023.

In all, 29% of companies surveyed signposted rises, compared to only 5% during the previous three months, the association reported.

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.

CBA chief executive Tim Doggett said: “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.

Doggett’s 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.

*Based in Crewe, the Chemical Business Association represents the chemicals supply-chain - from distributors and traders to manufacturers and blenders as well as logistics and service providers.

Report from Process Engineering, an associate publication of European Rubber Journal.