In the chemical and pharmaceutical industry – Britain’s number one manufacturing exporter – the cost of energy in the UK has been shown to be a barrier to future jobs and growth.

The trade body for the sector in the UK – the Chemical Industries Association – will today announce the results of its latest quarterly survey of member companies.

All of the Association’s member companies located throughout the UK have placed energy costs right at the top of their concerns, while praising the skills of the UK workforce.

Steve Elliott, the Association’s Chief Executive who will meet with cross party members of parliament this morning to discuss the results has called on government to pull together an industrial strategy with manufacturing at its heart. “I know people in government want to have this strategy but for some reason there is a fear about publishing it. I say let’s be brave, proud of our manufacturing and send a signal to investors across the world that we have a strategy to support manufacturers. Energy costs are clearly a key part of this. The UK reportedly has extensive shale gas reserves. We should look at this and other options from an environmental and social angle as well as an economic measure, to see if it can promote the UK as a place to do business. The benefits from exploiting such a resource have been amply demonstrated in the USA”.

The chemical and pharmaceutical industry provides half a million jobs, contributes £70 million every day to the UK economy, invests £5 billion a year in research & development and is essential to the transition to a low carbon economy – making, for example, the vital components for wind turbine blades, home insulation and lighter automotive parts. The sector is the nation’s number one manufacturing exporter. 

Elliott continued “With almost 80% of our companies foreign headquartered I want to make sure we tackle the cost of energy in our country and I want a strategy that brings everything together so investors, government and our workforce know where they stand. There is much we can be positive about – especially workforce skills – but let’s get those energy bills down for domestic consumers and for business.”

Notes:

The Chemical Industries Association is the trade association and employers’ Federation for chemical and pharmaceutical businesses located throughout the UK

The Association runs a quarterly survey of its member companies on business confidence

For an interview with Steve Elliott, Chief Executive of the Association, please contact Simon Marsh on 07951 389197