UKLA President’s Report
At the start of the year, the Bank of England forecast that inflation which reached a peak of 11.1% in November as measured by the Consumer Prices Index, would end 2022 at 10.7%, before falling away in mid-2023 but only reaching a target of 2% by 2024.
There is no doubt that higher energy prices, food shortages and supply chain disruption have caused a supply-led inflation bubble rather than a consumer- led price spike which many analysts believe will push the UK into recession beginning in the first quarter of 2023. Lubricants are not immune to these costs pressures.
Recent reports of falling demand for lubricants and consequently base oil indicate lower economic activity in many countries. Lubricants reflecting the general level of activity in any given economy. In the UK growth is expected to be the slowest of the G7 in 2023.
Higher inflation and higher prices, especially energy and the cost of living, will dampen consumer demand this year.
At the same time as consumers are subject to higher living costs, new sustainability initiatives like the 15 minute city are being introduced. Trialled in Oxford, the concept is that the majority of daily tasks can be accomplished within a fifteen minute walk or cycle from homes which may well have an impact on the future shape of our lifestyles.
As well as restricting travel, the zones aim to improve the quality of life air quality for residents although how these support cross-city commuting to work or school remains to be seen.
Certainly initiatives to improve the environment should always be cautiously welcomed, however we are a culture built on mobility, freedom of travel and transportation. Balancing these competing demands will present quite some challenges in the future.
Andrew Goddard, UKLA President
UEIL President’s Report
First of all, I would like to take this opportunity to wish everyone a happy, healthy, and prosperous 2023!
This past year has been challenging in our industry due to the main disruption in the supply chain of lubes – from the higher energy costs, rising inflation and, more particularly, following the war in Ukraine. Thus, we are starting this new year not knowing what will exactly happen for our industry in the upcoming months, and it is hard to predict. However, we can only be positive and push hard on the strength and interest of the industry to move forward from the COVID-19 pandemic and the hardships of this past year.
And what we know is that UEIL is going to continue to serve its members by collecting and sharing knowledge of the industry throughout the year. To do this, together with the Board, we have created
4 LUBE MAGAZINE NO.173 FEBRUARY 2023
and developed several work streams. For example, now we have work streams concerning our advocacy, membership, industry data and our internal organisation that will continue and improve the work of UEIL for the upcoming year.
And our main goal is to shed light on UEIL’s work and effort in the industry and to show the ambition of the organisation to be the most prominent representative association of lubricants.
If you want to be more involved in the lubricants industry and the association itself, please do not hesitate to join us by connecting through your association with us.
Mattia Adani, UEIL President
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