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BRITAIN’S BIGGEST MANUFACTURING EXPORTER SEES SOME STABILITY BUT WARNS ABOUT THE FUTURE

Chemical and pharmaceutical companies reported a second successive quarter of expansion at the end of 2020 according to the latest business survey of the Chemical Industries Association (CIA).

In the survey 57% of businesses reported total sales growth and 26% reported no material change. Within this, 84% reported stability or growth in domestic sales and 83% in exports. More specifically, 87% saw growth or stability in EU exports (the industry’s biggest market) and 84% reported a similar outlook for “rest of the world” markets. Finally, over 40% of companies confirmed increases in production levels and new orders.

Reacting to the data, CIA Chief Executive Steve Elliott said that the numbers reflected both the criticality of the industry to the economy and broader society in such a challenging environment but also the hard work of chemical businesses and their workforces across the UK. During the pandemic our industry has carried on working, underpinned by collectively agreed and carefully managed safety arrangements, enabling companies and their employees to conduct their business and do their jobs with confidence. With order books relatively strong - despite the disruption of COVID and our exit from the EU - all we ask is that supportive conditions for competitive advanced manufacturing are put in place to allow us to build on our resilient 2020 performance and enable us to play our part throughout 2021 in boosting productivity across the UK and deliver solutions to meet our net zero ambitions.

He continued “Our survey also produced questions about the need to get this country’s future global trading relationships right. As one of the most highly regulated sectors, our industry’s regulatory framework needs to be in close step with that of our key export markets to enable continued and increasing access. Should standards drop - or should there continue to be an approach that does not recognise or efficiently link to the legal standards we met while in the EU, then prohibitive costs will mean investment in the UK will fall, undoing much of our strong performance to date. There is a high degree of concern about the cost of energy in the UK. While we are part of the solution to deliver a net zero economy because of the products and technologies we make, a system that sees us pay twice the amount for our electricity as other European countries is an ongoing blocker of opportunity”. Elliott ended “We are relieved there is an agreement on a future trading relationship with the European Union and I hope that the current freight and logistics challenges faced by chemical companies soon start to ease as businesses and authorities become more familiar with the new trading arrangements. That would leave the remaining and significant challenge of delivering an effective and proportionate REACH regime in the UK, and we look forward to working with the UK Government to deliver an outcome that best addresses health, environmental and commercial concerns.”

Cubis® II Loss on Drying

For Determining Dry Weight of Tablets, Capsules, or Bulky Material according to USP or PhEur

Loss on Drying is a back-weighing application to determine the amount of volatile matter in tablets, capsules, or bulky material. Samples are weighed before and after treatment, and the weight difference is measured.

According to the US Pharmacopoeia Chapter 731 (USP Chapter 731) 1–2 g of sample is mixed; for large particles the size is reduced to about 2 mm by quickly crushing. If tablets are to be tested, the powder of not less than 4 tablets must be used; For capsules, the mixed contents of not less than 4 capsules must be used. A glass-stoppered, shallowweighing bottle that has been dried for about 30 minutes and cooled to room temperature in a desiccator is tared, the sample placed in the bottle, and the initial sample weight is measured. The sample is evenly distributed in the bottle by gentle shaking, the stopper is removed, and the bottle placed in a drying chamber to be incubated at elevated temperature. After heat treatment, the bottle is closed promptly, cooled down in a desiccator to room temperature, and then the back weight is measured. According to USP the “dry to constant weight“ or according to European Pharmacopoeia (PhEur) the “dried to constant mass” or “ignited to constant mass” weight value of pharmaceutical products is to be measured. The USP defines that two consecutive weighings must not differ by more than 0.50 mg per g of sample, whereas the PhEur specifies that two consecutive weighings must not differ by more than 0.5 mg to consider the sample as dried to constant weight or mass. If the measured weight difference is out of the allowed limits, the drying shall be continued and the weight measured again. In the Cubis® II software application for loss on drying, the administrator selects between the test procedure according to USP or PhEur, and the sample type – tablet or capsule. Due to the different definition of allowed weight difference, the selection between USP and PhEur determines the mode, or how the software application considers samples to have passed or failed the test.

First the initial sample weight (with tare) and then up to three back weights are measured. In total, ten batches with up to 100 samples each can be processed. The software application calculates the difference between the initial and back weight for each sample, and determines if the weight difference is within the range allowed by USP Chapter 42 <731> or European Pharamacopoeia (PhEur). After weighing back a sample, the software evaluates the weight difference and, if it is out of limit, displays a corresponding message to the user. By this mechanism the user gets a direct feedback when the volatile matter of a sample is too high and the drying process must be prolonged. The software application for each sample creates a comprehensive report, inclusive of the measured initial and back weight(s), and records if the test was passed or failed according to the applied pharmacopoeia. The Cubis® II software application Loss on Drying guides the user through the backweighing process and automatically evaluates the results according to USP or PhEur. If a test for a product fails the user gets a corresponding message displayed that cannot be overlooked.

The Cubis® II balance is a perfect solution for your applications in the chemical composition analysis. The Cubis® II balance is a perfect solution for your applications in the chemical composition analysis

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MANUFACTURERS OUTPERFORM OTHER SECTORS, AMID BETTER GROWTH EXPECTATIONS FOR 2021

• Eight out of 14 UK sectors outperformed their international counterparts in December, ahead of the latest national lockdown.

• UK manufacturers and transport business buoyed by spike in demand for British goods ahead of the Brexit trade deadline and the temporary easing of restrictions at the start of December.

• Majority of British businesses more optimistic on growth expectations for 2021 than their overseas counterparts, as the UK’s Covid-19 vaccine rollout began.

Manufacturers helped push the UK’s economic recovery ahead of the global benchmark in December, according to the latest Lloyds Bank UK Recovery Tracker. The Tracker, compiled working with IHS Markit, provides unique insight into the shape and pace of the UK’s recovery following the huge disruption caused by Covid-19. The latest data was compiled between 4th and 21st December 2020, ahead of the introduction of tighter lockdown restrictions at the end of the month, which should impact January’s results in certain sectors such as hospitality and tourism. Eight of the fourteen UK sectors monitored by the Tracker were ahead of the global index in December, up from six in November. Firms in the manufacturing industry, which posted a seven-month run of growth and helped slow falling UK GDP in November, were the biggest contributors to output growth in the final month of the year. A spike in demand from overseas buyers ahead of the Brexit trade deadline pushed the output of the chemicals (63.2), household products (57.1) and beverages and food manufacturing (54.6) sectors ahead of their global counterparts in December. A reading above 50 signals output is rising, while a reading below 50 indicates output is contracting. Meanwhile, transportation (56.9) outstripped global performance by the largest margin in December. This was the sector’s first rise in activity since July and its fastest growth for nearly two-and-a-half years. The performance was driven by the lifting of national lockdown measures in early December and an end-of-year spike in demand for logistics services ahead of the Brexit trade deadline.

VACCINE ROLLOUT DRIVES UK BUSINESSES 2021 GROWTH EXPECTATIONS

Looking at a measure of expected output volumes, 11 of the fourteen sectors monitored by the Tracker anticipated stronger output growth than their global peers over the next 12 months during December, as the UK’s Covid-19 vaccination programme got underway. The UK’s software services sector’s expectations for growth were strongest of all sectors and well ahead of the rest of the world in December, with a reading of 81.5 against the global benchmark of 70.9. Accounting for the positive outlook, providers anticipate increased corporate investment in digital services to continue in 2021. A reading above 50 signals that respondents expect output to rise in the next 12 months, while a reading below 50 indicates output is expected to contract. The industrial goods sector (75.6) was among those furthest ahead of the global benchmark (66.2) in December. The expectation of increased investment in industrial development and a positive outlook for the UK construction industry was behind the sector’s optimism for the next 12 months.

Chemicals (64.7), transportation (62) and real estate (58) were the only UK sectors monitored by the Tracker with 2021 growth expectations behind the global benchmark in December.

Chemicals producers commented on a slowdown in demand after sales to overseas buyers spiked ahead of the agreement of a trade deal with the European Union. Transport and real estate businesses anticipated another uncertain year for commercial property rentals and public transport, with many firms indicating employees will continue to work from home for a large proportion of 2021.

“While this survey was conducted before the latest national lockdown was announced, it is still worth highlighting the vaccine-induced rebound in business confidence across the economy. It is clear that, for many firms, this represents the defining influence for their prospects in the year ahead.”

Jeavon Lolay, Head of Economics and Market Insight, Lloyds Bank Commercial Banking

UK MANUFACTURERS’ GROWTH EXPECTATIONS FOR 2021 WEAKENED BY RISING COSTS

While still well above the 50 mark that signals output is expected to rise over the next 12 months, the growth expectations of four UK manufacturing sectors weakened during December – chemicals (64.7 in December v 70 in November), metals and mining (69 vs 75), beverages and food (72.2 vs 77.4) and automobiles and auto parts (73.5 vs 73.7).

Signs of inflationary pressures across the UK economy contributed to these sectors’ weaker output expectations for the next 12 months. Supply chain delays and the imbalance of container freight activity during 2020 led to a steep rise in shipping costs during December. Global raw material shortages also meant that UK manufacturers faced the sharpest rise in input prices for two-and-a-half years. Both factors are expected to increase prices charged by UK goods producers, which could negatively impact the competitiveness of domestic manufacturers in overseas markets during 2021. Jeavon Lolay, Head of Economics and Market Insight, Lloyds Bank Commercial Banking, said: “While this survey was conducted before the latest national lockdown was announced, it is still worth highlighting the vaccine-induced rebound in business confidence across the economy. It is clear that, for many firms, this represents the defining influence for their prospects in the year ahead. “December’s data also highlighted the impact Covid-19 continues to have on global supply chains. Many manufacturers benefited from a boost in overseas sales ahead of the Brexit trade deadline, but raw material shortages, rising input costs and distribution problems are making the sector’s road to recovery more challenging.” Scott Barton, Managing Director, Corporate and Institutional Coverage, Lloyds Bank Commercial Banking, added: “Growth expectations for the next 12 months help us chart the trajectory of the UK economy’s recovery from Covid-19. However, we cannot forget the incredibly challenging conditions businesses are currently facing during lockdown. Our immediate priority must be to support UK firms as they continue to demonstrate resilience and innovation in the face of adversity.”