CBA helps members through the maze

DRIVING FORCE

ASSOCIATION • TIM DOGGETT (ABOVE), CEO OF THE CHEMICAL BUSINESS ASSOCIATION, EXPLAINS CBA’S ROLE IN HELPING ITS MEMBERS NAVIGATE A WAY THROUGH RECENT SUPPLY CHAIN DISRUPTIONS

THE CHEMICAL INDUSTRY in the UK directly employs some 100,000 people and more than 200,000 others indirectly. With a turnover in excess of £73b annually it is a major contributor to the UK economy. In recent years, however, this vibrant and vital sector has faced several unprecedented challenges, the consequences of which have been far-reaching.

Besides dealing with the global pandemic, which saw businesses across all sectors have to dramatically change their operations, the chemical supply chain has faced huge price increases in the cost of moving freight. Both road freight and container costs have increased dramatically, driven by factors such as rapidly increasing fuel costs and fluctuating volumes.

Supplies from Russia have been severely curtailed due to the sanctions placed on the country, while production in Ukraine is understandably impeded. Transport has also been affected, not just in the ports as has been widely reported, but in less obvious ways. For example, many Eastern European truck fleets have significant numbers of heavy goods vehicle (HGV) drivers who are Ukrainian nationals – as much as 40 per cent in some cases – many of whom returned to Ukraine to defend their country.

As a result, supplies of key chemical components, many of which have evolved to rely on the ability to operate on a ‘just-in-time’ basis, have now become erratic, with consequences for the manufacturing and process industries as well as downstream users. This is a critical issue not only for the affected industries, but also for the wider UK and global economy.

GOING ALONE In addition, industry in the UK has had to face the consequences of Brexit. Considering that the EU is the destination for 60 per cent of the UK’s chemical exports and the source of 70 per cent of its chemical imports, these have been extensive.

Companies were effectively given only a few days from the signing of the Trade and Cooperation agreement in which to understand and implement new systems and accommodate new customs formalities and procedures. This came with an immediate administrative cost, with countless companies not having the resources in place to meet the deadline.

Two years down the line, most companies have adapted to the changes. For some, this meant opening separate EU entities or even migrating their entire operations to the EU due to factors such as ‘Rules of Origin’ that now hinder or prevent them from using the UK as a trading hub between the EU and rest of the world, something which was previously a significant benefit to UK chemical distributors.

All these disruptions have combined to slow down or create barriers to the movement of goods and delays in manufacture. What’s more, factors such as UK REACH and divergence between EU and UK regulations mean chemicals currently used in the UK may be prohibited or simply become commercially unviable in the EU. This could result in serious manufacturing challenges or even the non-availability of products down the line.

HELP AT HAND The Chemical Business Association (CBA) is ideally placed to assist and support members during these turbulent times and the members Helpdesk has seen record levels of demand. The association employs industryexperienced staff with expertise in all aspects of the chemical supply chain and has established long-term, effective working relationships with government, regulators and legislators, playing an influential and key advisory role in policymaking. It has also been

supporting its members with industry-specific workshops, training, online consultations and one-to-one advice. Members are supported and advised on a wide range of topics that are important to the industry, including UK REACH.

One area of importance for CBA is proactively supporting and improving the safety performance of all stakeholders in the chemical supply chain. To this end, it provides on-site compliance checks and training across a wide range of regulatory and compliance matters, including Control of Major Accident Hazards (COMAH), Spill Response, Control of Substances Hazardous to Health (COSHH), and the Carriage of Dangerous Goods by Road (CDG) Regulations. Additionally, it offers Dangerous Goods Safety Adviser (DGSA) training through its own in-house DGSAs.

Besides being part of the Health and Safety Executive’s (HSE) COMAH Strategic Forum, it also has its own dedicated COMAH Safety Leadership Forum, which shares information, experiences, and best practice with its members. This is not just limited to the UK, with CBA having extensive interaction with overseas governments and national authorities, while additionally engaging with groups such as the Organisation for the Prohibition of Chemical Weapons (OPCW) and the Group of Seven (G7) to share best practice and knowledge globally.

SAFE AND SUSTAINABLE CBA is also leading efforts to help the chemical supply chain become more sustainable. For almost thirty years, it has been actively involved with the Responsible Care (RC) programme, a global, voluntary initiative by the chemical industry which provides an ethical framework for the safe and sustainable use and handling of chemical products.

It has also produced guidance on climate change in partnership with the Chemical Industries Association (CIA) and the NonFerrous Alliance (NFA) and, in association with other organisations, developed new waste packaging supplementary guidance within the scope of the European Waste Framework Directive. This includes a structured approach to developing a climate change risk assessment and action plan for all businesses.

Additionally, several CBA staff have been certified as being ‘Carbon Literate’ and the association now offers Carbon Literacy training to its members. The certified training, which provides insight to help individuals and companies make informed choices to reduce their carbon impact, enables members to roll out Carbon Literacy to their organisations.

THE NEXT GENERATION Despite the vital role the chemical industry plays, it has faced increased difficulty in employing sufficient numbers of skilled workers. This can generally be attributed to three reasons: the impending retirement of experienced employees; skills shortages among the generation that will replace retirees; and the perceived unpopularity of the industry as an employer of choice.

CBA has launched various initiatives aimed at getting the younger generation interested and involved in the chemical supply chain industry. In 2019, the association introduced the Young Person’s Award with the goal of recognising excellence within the chemical supply chain. It also established a Future Council whose aims are to not only provide a support and mentoring network for those who have recently joined the industry, but also to raise the profile of the chemical supply chain industry and highlight the diversity of careers within the sector, especially at schools and universities.

One programme launched specifically to encourage young people to engage with the logistics sector is Generation Logistics, an industry-led campaign aimed at bringing industry together, shifting perceptions, and encouraging the next generation to pursue a career in logistics through the multiple and diverse opportunities it has to offer. As an official partner, CBA is proud to be playing a leading role in promoting this programme, which is a great example of boosting awareness and engagement.

The chemical supply chain industry has always been resilient and, despite ongoing disruptions, it remains a vital sector for the UK economy and for society. With a century of experience behind it, CBA will continue to evolve and adapt to offer its members steadfast support during uncertain times. www.chemical.org.uk