CIA: The British chemical industry is facing difficulties

Recently, the British Chemical Industry Association (CIA) released the latest business survey results
.
The findings confirm that the UK chemical industry is facing serious difficulties
in the current economic environment.

According to the CIA's third-quarter survey of its members, sales in the chemical industry declined quarterly for the first time since the peak of the coronavirus pandemic, and sales are expected to continue to decline
in the last quarter of 2022 and early 2023.
CIA CEO Steve Elliott said: "In the third quarter alone, more than 40% of company sales declined
.
In addition to economic challenges, ongoing supply chain challenges have also led to order delays
.
On the demand side, inflation is close to 10% and is expected to rise in the coming months, with the cost of living crisis continuing to dampen demand in the second half of 2022 and even into the first half
of 2023.
”

Elliott said the UK government's Energy Act bailout package may protect companies from soaring energy prices this winter, but the British chemical industry is not out of the woods
.
The CIA will inform the government of the review of the energy relief program, which will be released
in early January 2023.
"If we are to maintain the status quo and attract new investment and jobs, we need longer-term measures
," Elliott said.
”

According to Tom Warren, CIA head of economics, this quarter's survey data shows that energy costs, raw material costs, raw material shortages and labour costs remain the top four challenges
facing the UK chemical industry today.