Chemical makers survey reveals declining sales and production levels
October 2023 - Chemicals
The latest business survey was conducted at the end of September 2023 and includes the view of 50 chemical businesses across the UK of differing sizes.
The Q3 Business Survey monitored performance of chemicals businesses across the UK in July, August and September and also asked respondents to look ahead to the next quarter and also the coming 12 months.
The findings revealed that 57% of companies polled have seen lower production levels and capacity in this quarter than the last, with 87% also saying they expect their sales to remain the same or reduce. It also found that demand in the UK is low with just 4% of respondents reporting an increase in domestic sales.
Optimism for the coming quarter remains low, found the survey, with more than a third of companies saying they expect performance to get worse. Two-thirds of companies said they see challenging operating conditions and weakened demand ahead for their businesses.
Steve Elliott, Chief Executive of the Association, said: “There is no hiding the fact that these survey results make for grim reading, with nine out of ten businesses anticipating reduced or, at best, static sales and optimism drifting further out with each passing quarter. In the short term we must do all we can to minimise the industry’s cost base – especially energy prices over the coming winter – and secure a more competitive net zero policy environment and funding landscape for our sector. Success here will give us a stronger platform for UK chemicals trade and investment growth when those global economic conditions start to improve.”
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