One of Britain’s key manufacturing industries has looked beyond the current political turmoil and set out a plan for growth.
In a speech at the 2018 Annual Dinner of the Chemical Industries Association this evening, the President of the Association, Tom Crotty, is expected to say “the chemical industry is saying to Government work with us and we will deliver, not just for our industry, but for our Government, our stakeholders and the whole of the UK." Referring to an industry strategy for long term growth – which will be launched today, 15 November 2018, by the Chemistry Council. Tom will add: “We have set out how innovation, supply chains and the regions of this country can form the economic backbone of a post-Brexit Britain. This requires the right approach, the right policies and the right partnership on energy & climate change, regulation, finance and skills. If we get those then I am convinced we will rise to the post-Brexit challenge”.
CIA Chief Executive, Steve Elliott, will point to growth projections over the next decade, assuming successful implementation of the new Chemistry Council strategy. “Collectively chemical companies have set a sector goal of a 50% increase in production alongside significant growth in exports and annual investment. On top of this the industry sees a 35% climb in jobs, ensuring a great future for a vital sector." Steve will add: “Despite the gloomy headlines, the latest business survey showed 86% of CIA members report sales maintaining current levels or increasing. Looking to the future, 61% of companies see expanding export markets as key opportunities for their business in the next 12 months. That is reason to hope and to invest in the UK”. He will sound a cautionary note saying that “the relationship with Europe was the biggest threat to most companies in the chemical industry”.
The Association will hold its annual business conference tomorrow (15 November) with a range of speakers including Robin Walker MP, Minister at the Department for Exiting the European Union.
At the conference the co-chair of the Chemistry Council, Steve Foots the Chief Executive of Croda International plc, will launch Sustainable innovation for a better world a growth strategy for the sector.
The speaker at the annual dinner is Business & Industry Minister Richard Harrington MP.
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- The chemical and pharmaceutical industry adds £18 billion of value to the UK economy every year from total annual turnover of £50 billion.
- In addition to gross value added, the sector also contributes to the UK economy in its position at the head of many supply chains within manufacturing and its employment of a well remunerated, high-skilled workforce. We support 500,000 jobs both directly and indirectly Chemical manufacturing adds £9 billion in gross value added annually and pharmaceutical manufacturing £9 billion.
- The wider chemical and pharmaceutical sector (manufacturing plus distribution) is the largest exporter of manufactured goods with annual exports of over £50 billion. The export of motor vehicle, trailers and semi-trailers is the sector with next highest exports of £35 billion. Aerospace is £32 billion.
- 63% of companies in the sector export what they make to the world, the highest proportion of any goods manufacturing sector in the UK economy. 60% of our exports go to the European Union and 75% of our imports and raw materials come from the European Union.
- The sector’s level of business investment is £4.3 billion, compared to automotive £2.7 billion and aerospace £2.1 billion, while the expenditure on research & development is £5.0 billion (automotive £2.7 billion and aerospace £2.1 billion).
- The products and technologies of the Chemical industry are essential parts of medicines, food & drink, telecommunications, energy-saving, I.T, clothing and much more.
- For every tonne of Greenhouse Gas (GHG) emitted, our products and technologies enable over 2 tonnes of GHG emissions savings.