Chemicals industry
The Chemicals industry is one of the UK’s largest manufacturing industries. Over the last decade it grew more than five times faster than the average for all industry. It is manufacturing’s number one exporter, with an annual trade surplus of just under £5 billion. It spends over £2 billion a year on new capital investment.
All chemicals end up being used in products and services purchased by the consumer. There may be many stages between the processing of a chemical and the final consumer, but it is estimated that each UK household either directly or indirectly spends around £30 per week on chemicals.
The Chemicals industry has a relatively higher proportion employed in medium-sized enterprises when compared to other European countries. On average, full-time employees’ hourly earnings are 19% higher than in manufacturing generally. This reflects high skill, productivity and training levels.
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Industry details
Includes:
- Basic chemicals (including industrial gases, dyes and pigments, fertilisers and nitrogen compounds and plastics and synthetic rubber in primary forms)
- Pesticides and other products
- Soaps and detergents etc (including cleaning and polishing preparations, perfumes and toilet preparations)
- Other products (including explosives, glues and gelatines and essential oils)
- EXCLUDES paints, varnishes and similar coatings and printing inks
Statistics:
- Productivity – calculated on a value added per employee basis – The UK Chemical industry ranks 3rd in Europe and 5th globally amongst OECD countries.
- The Chemicals industry accounts for 2% of UK GDP and 11% of the manufacturing industry’s GVA
- The average growth rate of the UK Chemicals industry is 2.9% per annum (0.5% all UK industry)
- 92% of UK chemicals output was exported in 2004
- In 2003 R&D expenditure, at £3.8 billion, was equivalent to more than 10% of UK sales
The Skills Gap
There is an over supply of people qualified at S/NVQ level 1 and below compared to the number of jobs at that level in the Chemicals Industry.
Elementary occupations only account for 11% of the overall workforce.
There is a 18% SURPLUS at S/NVQ level 1 and below.
There is an under supply of people qualified to S/NVQ level 2 and 3 compared to the proportion of jobs at those levels in the Chemicals Industry.
Level 2 and level 3 occupations account for 52% of the Chemicals Industry.
There is a 14% DEFICIT at S/NVQ levels 2 and 3.
Economic picture
| Industry | Turnover | GVA | GVA per employee |
|---|---|---|---|
| Basic chemicals | £19.20bn | £4.06bn | £72,554 |
| Pesticides/agro-chemical products | £0.83bn | £0.27bn | £90,667 |
| Soaps and detergents etc | £5.82bn | £1.86bn | £54,618 |
| Other chemical products | £5.21bn | £1.75bn | £64,630 |
| Totals | £31.06bn | £7.94bn | Average £66,142 |
Workforce
| Workforce Distribution | |
|---|---|
| Number of Employers | 3,200 |
| Number of Employees | 146,000 |
| Age of workforce | |
| – 16-24 | 7% |
| – 25-34 | 20% |
| – 35-44 | 25% |
| – 45-54 | 30% |
| – 55+ | 18% |
| Ethnicity | |
| – White | 95% |
| – Non-white | 5% |
| Gender | |
| – Female | 27% |
| – Male | 73% |
| Occupation Distribution | |
| Managers and Senior Officials | 25% |
| Professional Occupations | 13% |
| Associate Professional and Technical | 14% |
| Administrative and Secretarial | 8% |
| Skilled Trades Occupations | 6% |
| Sales and Customer Service Occupations | 2% |
| Process, Plant and Machine Operatives | 21% |
| Elementary Occupations | 11% |
Standard Industrial Classification (SIC)
- 24.11
- 24.12
- 24.13
- 24.14
- 24.15
- 24.16
- 24.17
- 24.20
- 24.51
- 24.52
- 24.61
- 24.62
- 24.63
- 24.65
- 24.66