Chemicals

We have a good understanding of the issues facing the chemicals sector and we have worked with some of the industry’s specialist Johnson Matthey and Alfa Aesar to develop their managers to inspire and engage their people to improve the business’ performance and drive competitive advantage.

Products produced by the chemicals sector can be found in every area of our lives – from vital medicines, foods and clothing, through housing and transport, to communications and leisure activities.

The industry underpins many of society’s needs and is a significant provider of jobs and creator of wealth for the UK. The chemical industry is currently the UK’s largest manufacturing sector exporter and adds £16,9bn GVA, or 1.2% of the UK’s economy and employs over 120,000 people.

Drivers for change in the sector include:

• Climate Change – The Government’s aim is to reduce the UK’s greenhouse gas emissions by at least 80% by 2050. EU is targeting a 20% reduction on 1990 greenhouse gas emission levels by 2020. It is important that legislation does not incentivise the displacement of manufacturing activity to countries which are not CO2 constrained.

• The industry is energy intensive and volatile energy prices are a challenge faced by the industry.Securing a supply of competitively priced energy is one of the most important factors for a UK chemical manufacturing base.This is causing business to look for opportunities to acquire, form a JV or strategic alliance with companies in North America where the boom in shale gas production is significantly lowering energy costs.

• Global competition. The cost of shipping commodities is low compared to the price of production and there has been a shift of production of low-cost commodities to the Far East. This comparative cost advantage will spread to increasingly more sophisticated chemical products, eroding the UK and EU chemicals market.

• Measuring and reducing the environmental footprint the sector has, and supporting the users of chemicals to reduce their environmental impact.

• Changing supply chains, production capacity, and R&D in response to global trends.

We can develop your managers and staff to deal with these challenges and deliver a fundamental shift in the culture and performance of your business. We have the unique ability to deeply understand your business vision, strategy, and goals and to design development interventions that will deliver significant business benefits.  To learn more about our work in this sector and the impact we have had read our Alfa Aesar case study.  Alternatively see how our other clients have benefited from our support by visiting What Our Clients Say.