Friday News Round Up

Friday once again, so a time to update on various past stories and news items

• ICIS has analysed the various chemical companies job loss related annoucements reported to them since the start of the financial crisis in September 2008. The figures show that chemical companies have cut over 77,000 jobs since the crisis began.

• In the UK, NEPIC, the North East Chemical Industry Cluster, will investigate the commercial feasibility of chemical production from biomass. The 30-month project is being carried out on behalf of the UK Government department DEFRA

•  BASF has announced that it will close its maleic anhydride plant at Feluy, Belgium by the end of this year, with the loss of 133 jobs

• As Copenhagen approaches, UK Prime Minister, Gordon Brown expressed his views on climate change. He warned delegates at the Major Economies Forum in London (representing 17 of the world's biggest greenhouse gas-emitting countries) there was "no plan B" regarding climate change and that negotiators had "50 days to save the world from global warming".
  
  
• Paul Hodges sets out his views on what's to come for 2010 in his analysis 'Budgeting for a New Normal'. In his summary, he states "2010 to be a transition year. Full economic recovery is unlikely to take place much before the 2011/13 timeframe. But the return of economic growth will offer companies the opportunity to identify likely future market needs. Those that focus on this new reality, rather than simply hoping for a quick return to the Boom years, will position themselves for future success."

10,000 Jobs at Risk in UK Chemical Industry

It has always been relatively difficult for the Chemical Industry to make itself heard in the UK, compared to, say, the automotive industry. A KPMG analyst, Chris Stirling has warned that the UK's chemicals industry was being left to "suffer in silence" whilst efforts were being focused on other industries. It is claimed that recent closure announcements put as many as 10,000 jobs at risk across the UK, either directly or in supply firms. "The chemicals industry simply cannot be left to suffer in silence. The industry needs to better promote itself to the Government, presenting the case for why it is imperative to have a guaranteed supply of certain strategic chemicals in the UK, not just in terms of our own industrial output, to which the chemical industry contributes more than £5 billion annually to the UK balance of trade, but also in terms of long-term job and wealth creation" he said. This blog endorses the view. The UK Chemical Industries Asociation, together with UK regional groups such as NEPIC are doing what they can but need the support of others within the chemical industry to make themselves heard!

Record Numbers to Study Chemical Engineering in UK

Despite my previous post flagging job losses in the US Chemical sector, it is interesting to report that applications to UK Chemical Engineering courses have reached an all time high. Figures show that 10,068 applications have been made this year; a year-on-year increase of 18%. Numbers have doubled since 2001. I'm interested to know the trend in other countries. Comments from a US based colleague suggest that this in not the case there. Certainly the UK Institution of Chemical Engineers has played its part with a very effective campaign called Whynotchemeng. Undoubtedly Chemical Engineering is a degree that provides a very good platform for a wide range of careers both within and outside the chemical industry. Whatever the reason for the surge, this has to be good news for an industry which has voiced major concerns over the availability of skills for the future.

Recession Hits Jobs in US Chemical Industry

New figures from the US Department of Labor show that the number of job losses in the chemical industry has increased steadily in 2009. The figures show that the industry now employs 41,000 fewer workers than at the same time last year, a decrease of 5% Whilst employment numbers in the chemical industry have been falling for several years, this is believed to be due to productivity improvements. The latest falls are very much thought to be recession related, with most of the cutbacks in production positions. I don't consider these figures to be a surprise. Almost all organisations are having to deal with the effects of recession and cost savings are essential to survival. What is vital, however, is to use a robust management of change process when deciding where to make cuts - otherwise safety, productivity and your reputation could suffer as a result of poor decisions