UK Chemical and Pharmaceuticals Industries Outlook for 2017

In the latest survey of business confidence carried out in one of the UK top manufacturing exporters, there are signs of real optimism for 2017 after a tough 2016.

Britain’s chemical and pharmaceutical sector believes that the outlook for both domestic and export sales is more positive than at any time since late 2015. The latest quarterly business survey for the Chemical Industries Association said that while margins may well be squeezed due to higher energy and raw material costs, there is set to be strong growth in capital investment, research & development spending and employment in the year ahead, with these measures growing at their fastest rate since April 2016. 95% of companies expect total sales and export sales to grow or stay the same in the next twelve months and more than 80% of companies expect to increase or maintain capital expenditure and R&D spending in 2017. This should help to create new jobs in a sector that typically pays 30% more than the manufacturing average.

The chemical and pharmaceutical industry adds £14 billion of value to the UK economy every year from total annual turnover of around £40 billion. The sector employs around 140,000 people directly and supports in total around half a million jobs in the UK economy – many in the North of England and Scotland. The direct workforce is highly skilled and earns on average 30% more than the average UK manufacturing worker.

(C) Chemical Industries Association 2016 Brexit Team

 

Source: Chemical Industries Association, CIA 

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