Chemical Sciences invests in research and development for growth

During the Chemical Sciences Scotland conference at Airth Castle Hotel today (Monday 5 November) delegates will hear first hand from Enterprise Minister, Fergus Ewing, and “Chemicals and the Economy” blogger, Paul Hodges, on the importance of being able to adapt to the ever increasing pace of change.

With encouragement from organisations such as Scottish Enterprise, which has invested £14 million in innovation in the chemical sciences, companies are increasing their productivity, competitiveness and exporting opportunities. Indeed, Business Enterprise Research and Development (BERD) in Scotland is dominated by the chemical sciences, which accounts for 25% of Scottish BERD.

Chemical Sciences Scotland chairman, Sandy Dobbie is passionate about growing the sector. He said: “The chemical sciences are thriving in Scotland - our output is virtually back to what it was pre-2008, our exports are growing, and Scotland is increasingly becoming recognised as a place where companies want to invest. However, we mustn’t become complacent. We have already raised our growth ambitions and placed innovation and sustainability at their heart. Our challenge now is to make that happen in a very fast-changing world.”

Enterprise Minister Fergus Ewing added: “Scotland’s dynamic chemicals sector makes a substantial contribution to Scotland’s economy and is our second biggest export sector, only behind whisky.

“Earlier this year, I joined Chemical Sciences Scotland for the launch of their ambitious strategy for growth, which aims to increase exports by 50 per cent to £4.5bn by 2020.

“The 200 chemicals companies based here generate almost £3bn exports and it’s important that we build on that success through supporting innovation in the sector and by nurturing cross-sector collaborations with life sciences, energy, and food and drink.

“This conference provides a strong opportunity to bring together the brightest minds in the industry to address the challenges ahead and make sure the sector in Scotland is well placed to seize future opportunities for growth.”

Delegates will also hear from Paul Hodges, strategy advisor to many global chemical companies and author of “Boom, Gloom and the New Normal: How the Western Baby Boomers are Changing Demand Patterns…Again”. He will highlight the impact the post war baby boom had on boosting consumer demand in the west during an economic “supercycle” from 1982-2007 and how that is now over. He said: “The orthodox economic view that recovery will return us to trend growth is wrong. The world now faces a very different demographic future that will have very profound effects on demand.

“Chemical companies must learn to cope with rapid and unpredictable change and their creativity will be critical as they learn new ways to be successful in this New Normal”

Scotland is home to more than 200 chemical sciences companies which generate £9.3 billion revenue in Scotland. The sector is Scotland’s second biggest exporter with almost £3 billion of exports each year and it accounts for 25% of Scottish manufacturing by turnover.

Scottish Enterprise works closely with the industry to help deliver its growth ambition and its Head of Chemical Sciences, Caroline Strain, said: “Supporting Scotland’s key sectors is a priority for Scottish Enterprise to help drive growth in Scotland’s economy. Chemical Sciences is an innovative sector with significant R&D activity and the results announced today are testament to that.

“We work closely with chemical sciences companies through our account management portfolio in areas such as innovation, exporting and access to finance as well as specific support through our Scottish Manufacturing Advisory Service (SMAS) to support their long term growth plans. In addition, our support towards two transformation projects – Industrial Biotechnology and Grangemouth development – will also enable the sector to embrace this ‘New Normal’ and create global opportunities for Scotland.”