SUPPLY CHAIN SOLUTIONS T
im Doggett explores the pressures facing businesses, their impact and the steps being taken to address them.
NEW AND PERSISTENT CHALLENGES The challenges confronting the processing industry have created a precarious operating environment. Internationally, the war in Ukraine and the reluctance of shipping fl eets to resume using the Suez Canal continue to disrupt supply routes and extend transit times, resulting in shortages of materials and commodities, container imbalances, volatile and fl uctuating pricing as well as persistent road haulage capacity issues. The CBA Supply Chain Trends Survey Q2
2025 showed that 57 per cent of respondents were affected by Red Sea disruption this quarter, up from 36 per cent in Q1, while 32 per cent were affected by the Russia-Ukraine war, up from 21 per cent. Other geopolitical factors affecting the
industry include the imposition of trade tariffs, US/China trade tensions and the ongoing issues with Brexit-related regulations, particularly UK REACH. These disruptions all contribute to delays, shortages and rising costs, with the latest CBA survey showing that 77 per cent of companies had also seen shipping charges increase. Higher logistics costs have also been
compounded by the rising costs of employment in the UK. This has further squeezed sales margins, with just 9 per cent per cent of respondents seeing an improvement and 37 per cent expecting them to get worse over the next quarter. Moreover, while 14 per cent of respondents are expecting to increase employment levels, 20 per cent expect them to decline.
TALENT SHORTAGES Employment is a particular concern, as while the problem might not be acute, the processing industry for example faces a growing skills gap. With the recruitment of new talent lower than the sector requires, it has real implications for both day-to-day operations and long-term growth. To address the issue, the previous
government introduced new approaches to apprenticeships, launched Institutes of Technology and established T-level qualifi cations. Additionally, industry associations, like the CBA, have partnered with education providers to ensure that courses deliver the right skills. However, while the courses exist, too few students choose to study them, and many students do not see the processing or wider chemical industry as an employer of choice. Perception is also a major hurdle.
Gen Z generally considers the industry environmentally harmful rather than a means of solving social problems. This deters enrolment on courses and the seeking of employment. Furthermore, many young people see the industry as exclusively STEM. This means potential recruits with a wider range of skills don’t consider it as a career option, despite their talents being in demand.
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TACKLING SUPPLY CHAIN DISRUPTION AND THE SKILLS GAP
By Tim Doggett, CEO of the Chemical Business Association (CBA)
The UK chemical supply chain relies heavily on the processing industry, but this vital role continues to be hampered by a combination of persistent disruptions and a deepening shortage of skills
Another perception issue is with career
development opportunities. This is in fact contrary to reality. Once people join the sector they tend to remain for their entire working careers, acquiring many new skills in the process. To change perceptions and raise awareness
of the career opportunities and highlight the evolving needs of the industry, a number of initiatives have been introduced. Generation STEAM goes beyond traditional
STEM by adding an A for Arts. Representing creativity, adaptability and problem-solving. This shift refl ects the reality that future, and indeed current, success does not rely on technical expertise alone, but also on the ability to innovate, collaborate and apply human insight alongside technologies such as AI and automation. The initiative also helps raise awareness of the sector’s wide- ranging career opportunities, while promoting diversity, inclusivity and fresh pathways into the industry. Generation Logistics is a Department
for Trade (DfT) backed project involving over 40 leading industry associations and organisations. Focusing on addressing skill shortages specifi cally within the logistics
SEPTEMBER 2025 | FACTORY&HANDLINGSOLUTIONS
industry, it aims to boost the recruitment of fresh talent by increasing awareness of the wide range of roles and pathways into them, including those in engineering, HGV driving, warehousing, IT and sales. The CBA Future Council, meanwhile, aims
to nurture talent and support the career development of young people already working in the industry. The initiative brings together a group of aspirational young employees from different companies who, between them, have a wide range of skills and experience. By collaborating on various projects and events, the members acquire skills and knowledge they wouldn’t gain from their company role, giving them greater scope to grow and progress in their careers. While the processing industry remains
resilient in the face of ongoing disruption, associations, like the CBA, continue to represent their interests at the highest levels, including with UK REACH. At the same time, they are implementing initiatives to address the skills gap, while providing training and support in areas such as health & safety and regulation.
Chemical Business Association
www.chemical.org.uk
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