Critical to the smooth operation of the chemical supply chain, distribution and logistics companies are hampered by challenges ranging from increased regulation and costs to delays and skills shortages. Tim Doggett, CEO, Chemical Business Association (CBA) explores the current state of distribution and logistics within the industry and initiatives that seek to deliver improvement.
The chemical supply chain is a critical pillar of society and the economy. With more than 97% of manufactured goods relying on chemical inputs, it supports businesses both upstream and downstream, enabling the production of essential consumer goods. Disruption to distribution and logistics, therefore, can severely impact manufacturing operations and product delivery.
Current challenges
While the government wishes to reset the UK’s relationship with the EU, the lingering effects of Brexit continue to impact and stifle the chemical supply chain. This is corroborated by the CBA’s 2024 Q3 Brexit Survey where 63% of respondents claimed Brexit has had a negative impact on their business.
71% meanwhile, experienced ongoing difficulties with importing/exporting, including increased shipping times and additional costs, with the 90/180 days Schengen area limit having a particularly severe impact on UK hauliers operating in the EU. Furthermore, 82% are concerned about the uncertainty surrounding UK REACH.
At the same time, the chemical supply chain is having to contend with disruption caused by the Russia-Ukraine war, attacks on Red Sea shipping, and EU and non-EU import duties. The consequences are product and container shortages, shipping delays and increased costs.
A further factor is a growing skills gap. Many EU workers returned home after Brexit and the Russia-Ukraine war, exacerbating chronic long-term HGV driver shortages. Moreover, while widely reported worker shortages across the UK do not necessarily translate to an immediate crisis in the chemical supply chain, there is no space for complacency, as critical challenges loom on the horizon.
The “war for talent” is intensifying, and the chemical supply chain faces a combination of issues that could impact its workforce stability. Many experienced professionals are nearing retirement, leaving gaps that the next generation of workers may struggle to fill due to existing skill shortages. Additionally, there is a general lack of awareness about the career opportunities available within the chemical supply chain. Compounding this, negative perceptions of the industry deter potential recruits, making it difficult to position the sector as an employer of choice. Proactive measures are essential to address these challenges and secure the future of our supply chain workforce.
Tackling the issues
However, there is a keen desire from within the sector for an industry-wide, government-supported response to address these issues.
A dedicated and collaborative approach from the government would benefit and improve the chemical supply chain, ensuring its sustainability for years to come. The Department for Transport (DfT) backed Generation Logistics, is an initiative involving over 40 leading industry associations and organisations that aims to address skills shortages within the logistics sector. Generation Logistics raises awareness of the sector’s career opportunities and pathways, encouraging new talent across the gamut of roles, from engineering and HGV driving to warehousing, IT and marketing.
While further participation and collaboration with the government are welcomed, associations and other stakeholders continue their efforts to deliver positive benefits. On UK REACH, for example, lobbying the government about the regulation’s operability and practicality – along with duplicate testing and costs – has led to the Department for Environment, Food and Rural Affairs (DEFRA) to extend deadlines and consult on an Alternative Transitional Registration Model (ATRm).
Associations have been key to driving this and continue to work closely with and advise relevant bodies. What’s more, to support businesses, associations are delivering UK REACH training, bespoke advice and digital resources like the CBA UK REACH Online Consultation Webinar.
A range of other initiatives have also been launched to tackle current challenges. CBA’s Generation STEAM covers all aspects of the chemical supply chain and more by encouraging the study of STEM subjects. STEAM also includes an A for arts to reflect the industry’s need for creative problem-solvers. It also extends awareness of career opportunities and pathways, tackles negative stereotypes and perceptions while promoting the chemical supply chain’s inclusivity, diversity and value to society.
The People & Skills Hub (P&SH), another initiative by the CBA, is a central resource, where individuals and companies can collaborate, network and share knowledge. It is where tailored support is available in areas such as training, upskilling, people, skills and outreach.
P&SH offers access to global supply chain expertise and involves the participation of stakeholders, including the government, education providers and businesses. In addition, this Hub seeks to showcase the chemical supply chain as an employer of choice offering young people meaningful careers with a beneficial impact on society. As part of this approach, it facilitates collaborative projects, internships and job placements between existing and emerging talent and leading industry organisations.
The CBA Future Council, meanwhile, provides opportunities for young industry professionals to work together on a range of initiatives, enabling them to share skills and experiences and broaden their understanding of the wider supply chain beyond their current roles. This improves their future career prospects, while the projects they work on – such as visiting schools and universities to promote the supply chain and the study of STEAM subjects – have a positive impact on the chemical industry at large.
It remains the responsibility of associations and industry stakeholders to act as a voice and catalyst for change. Involved, knowledgeable and collaborative associations like ours will continue to work on an international scale, to directly address these issues.
For further information about CBA’s services visit:
chemical.org.uk
