UK chemical supply chain businesses remain under significant strain, according to the latest Quarterly Chemical Supply Chain Trends Survey from Chemical Business Association (CBA), which has tracked sector performance for more than 14 years across manufacturers and distributors, transport and logistics firms, and service providers.
The Q4 2025 survey shows tentative improvement in activity. Nearly 47% of respondents reported rising order books, up from 30% in the previous quarter and 18% a year earlier. Higher sales were reported by 37% of businesses, compared with 20% in Q3 2025.
However, these gains follow a prolonged period of contraction and subdued trading conditions.
CBA Chief Executive Tim Doggett said modest improvements risk overstating the sector’s underlying health, with many firms working hard simply to hold their ground. Forward expectations remain cautious, with only 33% anticipating sales growth in the coming months.
Profitability pressures persist, with just 12% reporting improved margins and 38% expecting margins to shrink next quarter amid rising costs and regulatory uncertainty, including around UK REACH.
Employment intentions remain subdued, with only 19% planning to increase headcount. Logistics challenges are also intensifying, particularly around road haulage capacity in the UK and EU.
Doggett warned that warm words alone will not secure growth, calling for urgent Government action to provide regulatory clarity and a credible long-term industrial framework to enable investment and competitiveness.
Chemical supply chain ends 2025 under pressure, CBA finds
