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Can the UK chemical industry compete in the rapidly evolving global market?
The UK chemical industry is the country’s biggest manufacturing exporter, generating £50 billion total annual turnover as of 2019. Playing a vital part in the success of the UK’s economy, the chemical and pharmaceutical industry represents one of the largest and most diverse industry sectors in the country.
However, as the global chemicals demand is expected to more than double by 2030, and the global chemical industry looks to attract more investment and new talent, we examine the production and employment changes that UK firms must implement to stay ahead of the competition.
(Chemical Works and Oil Refinery in Grangemouth, Scotland, source: REstore)
Reducing environmental impact through green chemistry
With much concern surrounding the environmental impact of operations in the UK chemical industry, there has been growing interest and investment in the development of ‘green chemistry’ and bio-based chemicals.
What is “green chemistry”? It is the broad effort of the industry to reduce the negative impact that chemical manufacturing has on the environment through carbon emissions and waste, by developing alternative products and processes.
The potential for green chemistry success is high in the UK, with industry experts recognising that the high skill levels of UK chemicals workers could present opportunities to manufacture high value bio-based chemicals at large volumes. UK firms and universities could also have the opportunity to sell their green chemistry expertise and consultancy around the world.
In a recent report by LBNet, chemistry and biotechnology experts identified 10 bio-based chemicals, which the UK is in a strong position to develop and commercialise.
Included in the top ten were Lactic acid (a chemical used to make PLA, which can be utilised for biodegradable plastics), 2,5-Furandicarboxylic acid/FDCA (a stronger alternative to PET, which is used to make plastic bottles, food packaging and carpets), and Itaconic acid (a replacement for petroleum-based acrylic acid - used in making resins for high-performance marine and automotive components).
University partnerships with chemical firms are vital to green advancement
In order to make green chemistry a viable commercial option for the firms, a great deal of research and development is required before chemicals can be mass produced. Strategic collaborations between the universities and firms within the UK will play an important role in the commercialisation of bio-based chemicals.
One such collaboration occurred earlier this year, when The University of Nottingham announced a new partnership with the CPI (Centre for Process Innovation).
As part of this agreement, CPI acts as a catalyst, bringing together the University, businesses, government and investors to convert ideas and research into the mainstream chemicals through connecting partners with the right experts, equipment, facilities, and funding.
(The GSK Carbon Neutral Laboratory in Nottingham, source: ChemistryWorld)
CPI and their partners will also benefit from the use of state-of-the-art facilities, including the GSK Carbon Neutral Laboratory for Sustainable Chemistry and the sustainable processing laboratories opening later this year.
CPI and the University are already working closely on projects such as the production of sustainable aviation fuel, with the new partnership agreement allowing initiatives to advance rapidly, as well as providing a collaborative environment for new chemicals research and innovation.
Digitalisation becomes a top priority for chemicals companies
In line with other manufacturing sectors, the importance of ‘fourth industrial revolution’ technologies, such as the internet of things and AI are all growing in importance and influence for the UK chemical industry.
Last year, BASF, the largest chemical producer in the world joined forces with pioneering technology leader ABB to host a seminar on ‘Digitalization in the chemical industry’ at the 12th Annual Gulf Petrochemical and Chemical Association (GPCA) forum in Dubai.
ABB and BASF join forces to tackle digitalisation in the chemicals industry
Within the seminar, Dr. Frithjof Netzer, Chief Digital Officer at BASF, discussed how ABB had helped the chemical firm with their digital journey. “ABB has been an innovative partner throughout our journey towards a digital future. It is clear that digitalization continues to be a source of transformational change for the chemical industry. It allows us to add value to our customers through digitally enabled products and services.”
Digitalisation within chemicals is also expected to impact the Oil & Gas industry, as many firms shift from producing commodity chemicals and petrochemicals to going further downstream into specialty chemicals, which require higher levels of technical service and application expertise.
(ABB and BASF speakers at the 12th Annual Gulf Petrochemical and Chemical Association (GPCA) forum, source: ABB)
“Automation and digitalization done in the right way will further improve the uptime, productivity, energy efficiency and safety in the downstream industry. There is already a massive impact of automation and digitalization in the refineries and petrochemical facilities, and this trend is going to be more powerful in the future. The direction of this technology development is not just connecting systems but running them in a collaborative way with an increasing degree of autonomy. The way humans collaborate with plants is changing and ABB is at the forefront of helping customers to be successful.”
Siemens UK believe chemical companies are doing too little in terms of digitalisation
Despite the obvious benefits of digitalisation for the chemicals industry, the UK is currently trailing behind in terms of digitalisation within the global chemicals market.
Highlighting the importance of digitisation in his latest report, Ian Elsby, head of chemical industry for Siemens UK, believes that UK chemicals companies are doing too little while eyeing events in Europe and beyond. “We’re still at the curiosity stage. Germany and the Far East are leaping ahead,” comments Elsby.
The UK chemicals industry is now facing a future in which digitalisation and skills needs are intertwined, explains Elsby.
“There’s going to be a massive skills and knowledge shortage and that is where companies like Siemens are starting to have these conversations about digital transformation, because the knowledge in the chemical industry simply isn’t there; they don’t know how to ‘do’ digitalisation.”
Concern for the UK chemical industry skills gap
To compete globally and operate safely, the UK chemical industry must employ a wide range of skilled people from chemical engineers to technicians and maintenance staff.
According to the Chemical Industries Association, there is not an unskilled job in the chemical industry. Even in times of an economic downturn, supply of skills is a problem that is hampering the competitiveness of the industry.
The skills gap is not new and much good work has been done over the past years to attract more people into the industry; improving apprenticeships, focusing on operator training and development of recently graduated engineers. However, much still needs to be done and the chemical sector is not alone in this, with 80% of UK firms having difficulty filling positions with competent people.
UK chemical industry sees high demand for skilled process, project and mechanical engineers
With new projects and opportunities set to rise across the UK chemical industry, many operators are facing new diverse workforce demands and increasing competition when searching for workers with the right skills for their projects.
Speaking on the rising demands within the UK chemical industry, Client Services Manager at First Recruitment Group, Anthony Fallows said:
“Firms looking for to hire in specialities such as petrochemicals, inorganics, polymers and fuel additives are finding it difficult to select and hire the right talent. Chemical companies are also having to look for more technology-focussed workers to drive innovation and develop their capabilities, this presents a huge challenge for many firms, which have not been as heavily digital in the past. Saying that, we are still seeing a huge demand for skilled process, project, HSE, and mechanical engineers, from our chemical clients. As our chemical division continues to deal with traditional roles, we now have a specialist Technology division to find skilled AI and digital candidates.”
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At First Recruitment Group, we have over 22 years of experience in providing skilled chemicals and technology workers in the UK, working hard to source the correct talent for our clients hiring and project needs.
If you are looking for a chemical recruitment agency, that offers full compliance and expert hiring knowledge, please contact our Client Services Manager, Anthony Fallows on 01925 909257 or email Anthony.fallows@firstrg.com.
