UK’s chemical supply chain survey re…

The Chemical Business Association (CBA), the voice of the chemical supply chain, has released results from its latest quarterly supply chain survey*. The survey, which is distributed to the Association’s extensive membership, contains responses from manufacturers and distributors, as well as transport and logistics companies from across the UK’s chemical supply chain.

The 2025 first-quarter results indicate a slow start to the year in terms of growth, with less than a quarter (23%) of respondents specifying that their order books are improving. While this is an improvement over Q4 2024, it is well below the 31% recorded in the first quarter of last year.

In terms of current sales, 32% of respondents reported improved sales over the previous three months and, while this is an increase of 12% compared to 2024’s final quarter, it is a slight downturn from the same period last year (35%).

With regards to future sales, 25% of companies are predicting an improvement in the coming months – this is up from 19% in Q4 2024, but down from 34% for the same period last year.

Current sales margins support this trend, with only 14% of respondents – a third less than last year’s 21% – reporting improvements, while 55% indicated no change. Future margin expectations also show signs of decline, with nearly 40% of respondents expecting them to worsen in the next three months. This figure has nearly doubled since Q1 2024, when 19% of respondents expected a decline.

The CBA’s recent trends survey also reveals concerns regarding employment amongst member companies. While 11% are expecting employment levels to increase over the coming months, up from 4% at the end of last year, 25% are expecting employment levels to decline, compared to 11% in and 6% in Q1 of 2024, respectively.

When considering issues relating to logistics, including imports and exports, the survey shows some signs of improvement. While fewer are experiencing problems caused by the Red Sea and Suez Canal – the latest figures show 36% of respondents are still encountering disruption, a significant reduction when compared with Q1 2024, when it was 68% – issues persist.

More disruptions regarding UK road haulage capacity are being reported – 16% have reported this as an ongoing issue during Q1 of this year, compared with 3% in the previous quarter, and 8% in the first quarter of 2024.

Members are also reporting wider concerns, ranging from National Insurance increases and escalating port and shipping rates to US trade tariffs and uncertainty. Regulatory issues linked to Brexit, in particular UK REACH, continue to trouble the sector.

Tim Doggett, Chemical Business Association’s CEO said: “While the latest survey underscores the resilience of the UK chemical supply chain, it also highlights the pressing need for targeted interventions to address ongoing challenges.

“The persistence of regulatory uncertainties, notably UK REACH, which remains unresolved since December 2021, continues to stifle trade, highlighting the urgent need for a clear and effective regulatory framework. Additionally, recent shifts in geopolitical risk and uncertainty are cause for concern for our members.”

The CBA, which has been the voice of the UK chemical supply chain for over a century, has been working tirelessly to make Government aware of the impact of UK REACH, not only on the chemical supply chain and the wider chemical sector, but also on downstream users who were previously not in scope of the regulation.

The Association has persistently lobbied the government on the UK REACH’s operability and practicality and the impact of duplicate testing and costs. With some success achieved through the extension of deadlines and an agreement to consult on an alternative model, it continues to work with multiple stakeholders, including government, towards a workable solution.

Commenting on employment trends, Doggett added: “The increase in companies anticipating employment declines is concerning. It reflects broader economic pressures and underscores the necessity for strategic support to safeguard jobs within the sector. As the voice of the UK’s chemical supply chain, the CBA is committed to reversing this trajectory through programmes and initiatives such as the People & Skills Hub, 5050Vision and Generation STEAM, all of which are aimed at building a skilled and sustainable workforce.”

Doggett concluded: “Our commitment to our members and the broader industry is unwavering, and we will continue to do what is necessary to help them navigate these challenges.”