COUNTRY’S TOP MANUFACTURING EXPORTER SAYS SALES, INVESTMENT AND EMPLOYMENT ARE INCREASING

In the chemical and pharmaceutical industry – Britain’s number one manufacturing exporter – sales, investment and jobs are on the rise.

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

The Association’s member companies, located throughout the UK, report increasing sales volumes, growth in employment and increases to both investment in research & development and capital expenditure.

Steve Elliott, the Association’s Chief Executive said “Our latest survey covering the second quarter of 2012 shows in amongst all of the difficulties the country is facing, there is some good news. While we cannot afford to ignore the very real challenges businesses are facing or become too complacent, we do need to show we are not only open for business but companies are working very hard to deliver economic, social and environmental progress for the UK”.

In the latest survey of CIA members:

• 30% expected sales to increase in the next months
• One fifth of members expected employment to grow
• More than one third will increase their research and development spend
• 40% will increase capital expenditure

Elliott continued “Like everyone else I am concerned about the future and we do have a number of companies reporting that profit margins are being squeezed which limits re-investment, but I am keen that we send more positive signals where we can about the performance of manufacturers in the UK and the work of the chemical sector in the vital supply chain underpinning that opportunity. I think many companies in the UK have successfully re-structured to ensure they are fit for the twenty first century”.

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, £1 billion a year in capital expenditure 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 investors to the UK to appreciate the hard work of men and women throughout our sector who are making a vital contribution in delivering real progress not just for the economy but for our environment and our communities too.

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. This survey also asked about exports with 94% of member companies saying how critical Europe was as a market and 60% North America. While in the next 2 years at least 50% of members saw growth in South America, China or other Asian countries as presenting the best opportunity.

For an interview please contact Simon Marsh on 07951 389197