2015 / 2016 MANUFACTURING EDITION A YEAR IN PERSPECTIVE FOREWORDS Th e Rt Hon Philip Hammond MP Stephen Elliot CHEMICAL, COSMETIC & PHARMACEUTICAL REPRESENTATIVES CalaChem Tristel Solutions Cod Beck Blenders Color Wow Lipcote Heyland & Whittle Chemique Adhesives KRSS Fujichem Sonneborn Potters Crouch Candles Neatcrown Corwen Safapac FEATURES Review of the Year Review of Parliament ©2016 WESTMINSTER PUBLICATIONS www.theparliamentaryreview.co.uk Foreword Th e Rt Hon Philip Hammond Chancellor of the Exchequer This Government is clear that a strong economy is arrangements with our European neighbours, we must the essential prerequisite to delivering prosperity and also redouble our efforts to promote trade with the improved life chances for all, building a Britain that truly rest of the world. Since the referendum we have seen a works for everyone, not a few. number of countries indicating their wish to agree trade deals with the UK, and I’m certain the list will continue Since 2010, we have made significant progress. to grow. Britain has been one of the fastest growing advanced economies in the world over the last few years; our People can be assured that we are prepared to take the employment rate has reached record highs as living necessary steps to safeguard the economy in the short standards rose to the highest level ever last year. At the term and to take advantage of the opportunities that same time, the deficit as a share of GDP has been cut by arise in the longer term as we forge a new relationship almost two-thirds from its post-war peak in 2009–10. with the European Union. While the decision to leave the European Union marks The message we take to the world is this: we are the the beginning of a new chapter for our country and our same outward-looking, globally-minded, big-thinking economy, we start from a position of strength and our country we have always been – and we remain very economy is well-placed to confront the challenges ahead. firmly open for business. Britain will, in due course, begin negotiations to leave the European Union. We recognise there may be some uncertainty as we negotiate and then a period of adjustment as the economy transitions to the post-EU reality. As we go forward, we are determined As we go forward, we are to build on our strengths as an open, dynamic, trading nation to forge a new global role for Britain. determined to build on our We are determined to make a success of Brexit and have“ strengths as an“ open, seen some positive developments with large companies such as Siemens and Lockheed Martin confirming that dynamic, trading nation the UK remains an attractive place for them to invest. to forge a new global role This is all good to see but we cannot be complacent. for Britain At the same time as we seek the best possible trade FOREWORD | 1 Foreword Th e Rt Hon Philip Hammond Chancellor of the Exchequer This Government is clear that a strong economy is arrangements with our European neighbours, we must the essential prerequisite to delivering prosperity and also redouble our efforts to promote trade with the improved life chances for all, building a Britain that truly rest of the world. Since the referendum we have seen a works for everyone, not a few. number of countries indicating their wish to agree trade deals with the UK, and I’m certain the list will continue Since 2010, we have made significant progress. to grow. Britain has been one of the fastest growing advanced economies in the world over the last few years; our People can be assured that we are prepared to take the employment rate has reached record highs as living necessary steps to safeguard the economy in the short standards rose to the highest level ever last year. At the term and to take advantage of the opportunities that same time, the deficit as a share of GDP has been cut by arise in the longer term as we forge a new relationship almost two-thirds from its post-war peak in 2009–10. with the European Union. While the decision to leave the European Union marks The message we take to the world is this: we are the the beginning of a new chapter for our country and our same outward-looking, globally-minded, big-thinking economy, we start from a position of strength and our country we have always been – and we remain very economy is well-placed to confront the challenges ahead. firmly open for business. Britain will, in due course, begin negotiations to leave the European Union. We recognise there may be some uncertainty as we negotiate and then a period of adjustment as the economy transitions to the post-EU reality. As we go forward, we are determined As we go forward, we are to build on our strengths as an open, dynamic, trading nation to forge a new global role for Britain. determined to build on our We are determined to make a success of Brexit and have“ strengths as an“ open, seen some positive developments with large companies such as Siemens and Lockheed Martin confirming that dynamic, trading nation the UK remains an attractive place for them to invest. to forge a new global role This is all good to see but we cannot be complacent. for Britain At the same time as we seek the best possible trade FOREWORD | 1 Review of the Year Job losses mount in stricken Steve Elliott oil and gas sector Chief Executive of the Chemical Group, a provider of maintenance and construction services to Shell, staging Industries Association a 24-hour strike in July in a dispute over pay. The Unite and RMT unions claimed the action was a response to the Aberdeen-based company’s The UK economy has continued to grow, primed by a industries, welcomed new Prime Minister Theresa May’s plans for ‘swingeing’ pay cuts. The surge in manufacturing production which recently saw restructure of Government, especially the creation of industrial action followed Wood its biggest quarterly gain in six years. the new Department for Business, Energy and Industrial Group announcing a cut in pay rates Strategy under Secretary of State, Greg Clark. Inclusion for around a third of its contactors in As Leader of the Chemical Industries Association (CIA), of industrial strategy is a much welcomed signal to February, citing the ‘continuing cost the body representing the UK’s biggest manufacturing businesses planning for the future and the merger of and efficiency challenges affecting exporter which contributes £15bn of value to the business with energy should ensure competitiveness is the UK North Sea oil and gas sector’. country every year, economic performance like this more at the heart of all policy developments. Despite fears over a long-term decline fills me with great pride and solidifies the importance The outlook for the in investment from companies, French of manufacturing to the ongoing success of the Additionally, the new Department for International North Sea Oil & Gas industry giant, Total, reaffirmed its UK economy. Trade is likely to prove vital to developing new trade sector as a job creator The fortunes of the UK’s oil and gas commitment to the North Sea region agreements across the globe. It is, I believe, now the looked shaky industry continued to dwindle in 2016, Following the United Kingdom’s vote to exit the in May, with Chief Executive, Patrick responsibility of UK manufacturers to carefully look out with job losses predicted to increase European Union, we have entered into a period of Pouyanne, telling the BBC ‘There is and seize opportunities arising from Brexit to secure by the end of the year due to the uncertainty and what could be significant economic a future for the North Sea, no doubt a globally-competitive UK industry through a new ongoing downturn in global oil and gas adjustment. Positive recent economic results can no about it’. relationship with the EU and the rest of the world. prices. The North Sea – the epicentre longer be automatically considered indicative of future of the industry in the UK – looks set Looking to remedy the oil and gas growth and signs of weaker demand and flagging I hope the industry will, in true British fashion, be to bear the brunt of the fall. A survey sector’s precarious position of the past confidence must be recognised. innovative in its approach to the possibilities available. by Aberdeen and Grampian Chamber few years, the Government stepped At the same time we also need to be positive about the of Commerce published in May made forward with financial commitments potential prospects and performance that the UK could for gloomy reading by revealing sector and numerous incentives over the now achieve. The fall in the value of the pound has operators expected to see a 17% cut in course of 2016. On a visit to Aberdeen been a welcome bonus for manufacturing exporters. their UK headcounts over the coming at the beginning of the year, the It is important that attention now turns to going the Attention now turns to year. Since global oil prices began to Prime Minister, David Cameron, extra mile to ensure the concerns of the industry are fall in 2014, it is estimated that 65,000 said £20m would be earmarked for clearly presented to government and then get acted on. going the extra mile to “ jobs have been lost in the North Sea oil exploration activity, the encouragement These include the desire to remain in the single market, “ensure the concerns of the and gas industry.