UKLA President’s Report
As we enter 2017 there is perhaps some more promising economic news coming out of UK manufacturing data published based on 2016 market information? Certainly the news that UK car manufacturing reached a 10-year high, growing 3.9% to 1,587,677 vehicles, more cars exported than ever before, up 2.7% on previous year at 1,227,
881.and the US overtakes China as UK’s largest export destination, with demand up by a quarter. Which hopefully is also positive news for lubricant demand in the UK both in terms of production fluids and initial fill lubrication products. It is also interesting that we are seeing a renewed optimism for UK steel manufacturing which although we have still some way to go it seems that the future of Tata Steel facilities in South Wales is looking more stable and with British Steel and Liberty Steel both reporting improving condition for UK produced steel at least there appears to be more of an appetite for continued steel production operations in the UK. With steel production consuming significant lubrication products will have an influence on the prosperity of UK lubricant producers in this segment.
As an industry association we are continuing our commitment to have training as a core activity to support members as attracting and developing people is one of the key challenges facing our businesses. The United Kingdom Lubricants Association are launching a personal and professional designation for individuals working in UKLA member companies. The Registered Lubricant Professional (RLP), entitles the user to display the professional
designation in connection with their own personal career. In return delegates need to have successfully completed the UKLA Certificate in Lubricant Competence course, be working in a UKLA member company and commit to 35 hours of Continuing Professional Development (CPD) each year. I hope that members will recognise the value this bring to training and developing talents as part of a wider employee retention and engagement programme.
One important issue that I will continue to remind members of in this column is the June 1st 2018 deadline for Reach registration, from my own experience the management of this issue is critical to ensure that end consumers of lubricants are fully aware of the potential issues of this legislation on the supply chain. The UKLA is providing members with regular updates and sources of information that members can access to support Reach registration via monthly newsletters.
I look forward to meeting members who will be attending the UKLA Lunch at the RAF Club in London on 17th March 2017 and event which is proving as popular as ever and tickets are fully sold.
Steve Mayo UKLA President
UEIL President’s Report
A new year has started and economic prospects for Europe are fairly encouraging, also supported by a weak euro favouring the region’s exports. However, the outlook for Europe during 2017 will be strongly influenced by political developments. Germany and France, the region’s largest economies and two countries, will hold elections. Netherlands and possibly Italy will also hold elections during 2017. A win of anti-euro parties would risk putting the future of the European Union in question and endangering the region’s growth, as the prospect of a Eurozone breakup could return to markets.
Other uncertainties for the Eurozone’s economy will derive from the directions that the Brexit negotiations will take and the new trade agreements that will be developed, as well as from the implications of Trump’s election in the USA, as any enacted protectionist measures could hurt the European growth.
According to the EBC, the outlook for the Eurozone in 2017 is still of growth, albeit at a reduced pace compared to 2016, with a projected GDP growth of 1.4%.
For our industry, there will certainly be challenges as we will need to run business in an uncertain environment, however export activities should continue to be favoured by a weak euro.
On the raw material side, oil prices are expected to recover after having endured a long slump in the last two years. From a 2014 high of 112 USD per barrel, the price dropped to just 30 USD per barrel in February last year. Since then, there has been a sustained recovery, with prices hovering around 45-50 USD per barrel for most of 2016. In November 2016, however,
Opec nations agreed to their first cut in production for eight years and in December 2016 Russia and other major non-Opec producers agreed to restrict exports as well, starting in January 2017. This should lead to a cut down of approximately 2% of global production in 2017, which is expected to drive prices upwards – with price levels expected at 60 USD per barrel or above.
As for UEIL, during 2017, we will continue focusing our efforts on the lobbying campaign on the access to technical information. Within this framework, UEIL has tabled amendments to try to improve the current proposal for a regulation of the European Parliament and of the Council on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles.
Also, as sustainability is going to play an increasingly important role in our industry, UEIL has the ambition to take the leadership in developing sustainability standards for the European lubricant industry. We will share more about this as the year progresses.
Finally, the planning of the yearly congress is also in full progress. We are looking forward to welcoming you on October 25-27 2017 to the beautiful city of Bologna in Italy for a congress that will offer a compelling program, as well as excellent networking opportunities.
Valentina Serra-Holm UEIL President
LUBE MAGAZINE NO.137 FEBRUARY 2017
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