Trade and Competitiveness in the UK Chemical Sector

Today, we face a system under mounting strain. It’s not one issue but a convergence of multiple pressures – new and long-standing – creating a perfect storm. Decades of globalization, offshoring to China and emerging economies, rising regulation, and escalating costs have reshaped competitiveness and weakened domestic manufacturing resilience.
Added to this are global forces – geopolitical conflicts, energy volatility, climate change, technological disruption, and shifting demographics – all redefining how businesses operate. At home, UK firms face higher employment costs, regulatory uncertainty, and limited policy clarity, undermining confidence and investment.
The past decade’s shocks – from Covid-19 and Brexit to global conflicts and trade disruptions – have only intensified these challenges. As a result, members are increasingly focused on risk management, continuity, and resilience in an uncertain global environment.

Trade remains a major source of uncertainty for the sector. Which trade-related issues are currently having the greatest impact on UK chemical businesses, and where do you see the most urgent need for action?

T. Doggett: The UK chemical supply chain is highly interconnected and dependent on imports, leaving businesses exposed to trade disruption. Almost a decade after the Brexit referendum, companies are still grappling with practical challenges and lasting impacts.
UK REACh remains a prime example, adding major costs, duplication, and complexity. Having already spent over £500 million to comply with EU REACh, the industry now faces further expense under the Alternative Transitional Registration model, raising questions about its value – especially if UK policy continues to mirror EU rules.
Meanwhile, the US’s “Liberation Day” tariffs and shifting trade rulings have brought disruption and ongoing administrative burden. These pressures demand calm, coordinated action and renewed collaboration, making this an opportune time to rebuild closer EU trade ties while diversifying global partnerships.

Discussions around a reset in UK–EU relations continue. From a chemical supply chain perspective, what would a meaningful and practical reset actually need to deliver?

T. Doggett: The Brexit referendum and subsequent negotiations largely overlooked business realities, driven instead by a political urge to “get Brexit done.” Promises of seamless trade were never realistic, and SMEs have been hit hardest by the outcome. The EU remains the UK’s largest trading partner, and supply chains continue to operate across borders, not within them.
Since leaving the EU, the UK has seen both divergence and course correction—UKCA markings being a costly example. With the government ruling out a return to the Customs Union or Single Market, any reset must reduce barriers, friction, and duplication while supporting cross-border operations.
For the chemical sector, that means simplifying a highly regulated, documentation-heavy system and focusing on sensible alignment, especially in data, registration, and compliance. Mutual recognition could add real value. Mobility of specialized talent also matters for smooth operations.
Ultimately, a genuine reset will come through incremental steps—prioritizing alignment, cooperation, and stability to create a more predictable environment where businesses can operate, invest, and compete effectively.

Sustainability and circular economy are high on the industry agenda. Where are chemical companies making real progress today - and where are they still struggling to turn ambition into action?

T. Doggett: The chemical supply chain is central to the sustainability and circular economy transition. With 96% of manufactured goods relying on chemical inputs, the sector plays a crucial enabling role in achieving global goals. Across the industry, businesses are improving efficiency, cutting emissions, and driving continuous improvement.
Through initiatives such as the CBA’s Responsible Care Programme, members continue to go beyond regulation in areas like health, safety, and environmental performance. Innovation is thriving, from start-ups developing new solutions to established companies investing heavily in emerging technologies and resilient partnerships.
Yet scaling these innovations commercially remains difficult, requiring major investment, policy stability, and infrastructure in an uncertain economic climate. Companies must balance long-term transformation with short-term resilience amid supply chain disruption and rising costs.
Structural pressures also persist: extended global supply chains, Scope 3 emissions, security of supply, and uneven international policy all add complexity. The direction, however, is clear—sustainability and circularity are non-negotiable. Delivering them at scale will demand coordinated system change, supportive infrastructure, and alignment across the value chain, from producers to consumers.

Logistics and distribution are under increasing pressure. How are supply chains adapting, and what does this mean for the way chemical products are moved and managed?

T. Doggett: Advances in logistics have been fundamental to enabling globalization. The introduction of the 40 ft shipping container, major port infrastructure, and giant container ships made global trade faster and more efficient. For years, supply chains were built on just-in-time efficiency and cost optimization, but recent volatility has forced a shift toward a more resilient, “just-in-case” approach.
Businesses are now prioritizing flexibility—diversifying suppliers, building redundancy, and holding more inventory to safeguard continuity. This adds cost, but it’s increasingly essential. Greater visibility is also key: knowing where products are, how they move, and where risks lie helps manage disruption.
The environment is growing more complex, with rising regulatory, administrative, and compliance demands. Skills shortages in logistics, transport, and warehousing add further strain, while persistent cost pressures—from energy to labour—continue to challenge margins.
Logistics and distribution remain undervalued despite being critical to the chemical supply chain’s functioning. What this all points to is a more complex operating model, where resilience, visibility, and flexibility are just as important as efficiency.

The CBA has undergone significant development in recent years. How has the organization evolved, and what role does it now play within the sector?

T. Doggett: I joined the CBA during the Covid pandemic, as Brexit negotiations unfolded and before further global shocks such as the invasion of Ukraine. It has been “action stations” from my first day, supporting members through significant disruption and change. We’ve seen staff retirements that created both challenges and opportunities, promoted from within, and invested in new talent to strengthen our “CB-A Team.”
The founding ambition of 1923—to create “a powerful merchant organization of great value to its members”—still resonates. Yet trade associations must evolve to stay relevant. We aim to move beyond the traditional model to remain agile, distinctive, and genuinely impactful for the chemical supply chain. Our strength lies in representing the full supply chain, giving us a realtime, wholesystem view in an increasingly complex environment.
We’ve deepened engagement with government to ensure policies reflect operational realities and maintain an influential presence across departments. Internationally, we’re expanding participation and leadership in global initiatives, recognizing shared challenges across borders. Collaboration remains central, working closely with partners such as the ACA, ICTA, and TAF, where I serve as Director and Honorary Treasurer.
Member support continues to be a priority—through guidance, market intelligence, and new platforms for collaboration. We’re investing in initiatives such as Generation STEAM, People & Skills Hub, 5050Vision, and Future Council, while supporting broader programs including Generation Logistics and Business of Science.
The CBA’s transformation has been recognized with several TAF Awards since 2023, including Best Association Transformation and Diversity & Inclusion for Generation STEAM. Today, as “The Voice of the Chemical Supply Chain,” we take our responsibility seriously ensuring the sector is visible, understood, and heard at a time of global change. The chemical supply chain remains vital to the UK economy.

Looking ahead to the next 3–5 years, what will separate successful businesses from those that struggle in the chemical supply chain?

T. Doggett: Five years after the pandemic, it is clear that “normal” has not returned. This new reality demands a different mindset. In the coming years, success will depend on how well businesses adapt to a more complex operating environment and understand their supply chains.
Ongoing geopolitical uncertainty, regulatory change, cost pressures, and sustainability demands signal a long-term shift in how the sector operates. Progressive companies that plan strategically, rather than reactively, will be best placed to succeed.
Market consolidation will continue as businesses seek scale and resilience, while opportunities in emerging economies grow in importance. Climate change and supply security are also driving shifts toward reshoring and friendly-shoring.
Skills and leadership will also be critical. Navigating this environment requires strong decision-making, a clear understanding of risk, and the ability to respond quickly to changing conditions.
Government also has a key role to play in creating the conditions that enable companies to operate, invest, and compete effectively, which means providing greater clarity, consistency, and stability in policy and regulation.
More broadly, improving how the UK - EU relationship works in practice will remain a vital factor, particularly for a sector that depends so heavily on cross-border trade, relationships and integrated supply chains.
Ultimately however, crises do provide opportunities and the businesses that recognise the scale of change that is occurring and act accordingly will be in the strongest position. Those that wait, or assume a return to previous conditions, may well risk falling behind.