Read the results from the Chemical Business Association latest Supply Chain Trends Survey

Phil Black - PII Editor 26/03/2014

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The latest Supply Chain Trends Survey from the Chemical Business Association (CBA) reveals an increasingly positive outlook for order books as well as current and future sales. The survey also shows that CBA member companies expect the current pressure on sales margins to ease over the next three months.

“The March survey confirms that trading conditions are continuing to improve with a majority of member companies reporting an improving order and sales position – and are expecting that trend to continue over the next three months. In addition more than a third of CBA companies expect employment levels to increase during the next three months,” said CBA’s Chairman, Steven Cartlidge.

The results of the survey are based on responses from 49 member companies.

· ORDER BOOKS – improving trend continues

In the March 2014 survey, a sharply increased positive balance of +45% (November 2013, +24%) of CBA member companies report stronger order books than three months ago.

· SALES – current sales improving significantly; trend is forecast to continue

Current sales have developed a similar momentum with a positive balance of +43% (November 2013, +23%) of respondents reporting higher sales than three months ago. Looking ahead, member companies are confident that this trend will continue during the next three months with a positive balance of +46% forecasting increased sales (November 2013, +25%).

· SALES MARGINS – current margins under pressure but should improve over the next three months

The March 2014 survey reveals little change in the current pressure on sales margins with a negative balance -24% of companies reporting deteriorating margins over the last three months. The corresponding figure for November 2013 was -25%. This pressure is expected to ease during the next three months with only -4% of companies forecasting worsening margins (November 2013, -9%).

· EMPLOYMENT – jobs growth continues

CBA member companies continue to forecast higher employment levels over the next three months with a positive balance of +32% of respondents indicating rising levels of employment – a similar level to November 2013 (+33%).