The Chemical Business Association’s (CBA) latest trends survey update has revealed insight into the sector, with order books, sales, and margins highlighting the current economic situation and a more negative outlook compared to its previous survey.
As part of the survey, which aims to provide a snapshot of short-term trends in the UK’s chemical supply chain, members were asked if their order books were better, worse, or the same as the previous three months. Just over half of respondents said that order books had remained the same, while nearly 30% reported a drop.
Sales volumes had also decreased compared to the previous survey carried out in March, with 34% stating that current sales were worse than previous and nearly 35% expecting future sales to follow a similar trend. For two thirds of members sales margins showed no change from the beginning of the year, while a third expected future margins to decrease.
It wasn’t all bad news, however, as 49% of respondents indicated higher employment levels. This follows on from the survey carried out earlier in the year, during which 47% reported the same, showing a consistently higher rate of expected employment throughout the CBA’s membership.
Additionally, fewer members reported logistics, import and export issues, particularly in terms of UK and EU road haulage, shipping costs, and the impact of the conflict in Ukraine.
Tim Doggett, CBA’s Chief Executive said: “Our survey in March indicated that the business outlook was improving, despite macro-economic factors such as the Ukraine war. However, the economic climate is now a top concern for businesses and our members seem to be feeling increasingly uncertain. Despite an overall sombre outlook, it is reassuring to see that employment levels keep rising across the chemical supply chain.”
The CBA has been the voice of the chemical supply chain industry for the past 100 years. It currently represents more than 170 members, which include distributors, manufacturers, traders, warehouse operators, logistics and transport companies, many of whom are the main industry interface providing products and services to thousands of downstream chemical users. Its broad member base gives the Association a 360º view of the state of the complete chemical supply chain.
The CBA’s Supply Chain Trends Survey has been published since 2003.
*The survey sample polled 47 members.
