The Northwest is home to the UK’s most extensive and deep chemistry using industries cluster, contributing in excess of £10bn of sales, representing around 20% of the UK chemical industry and employing 2.2% of the Northwest’s total workforce.

The sector is very broad, incorporating a complex supply chain matrix and consists of approximately 1,300 organisations. Directly and indirectly, around 220,000 people are dependent on the sector for employment. The cluster has maintained its high performance in recent years and productivity remains higher than other industrial sectors, with GVA ca. £55,000 per employee. Start-up firms are evident at around 4% of the total company base, mainly in the high technology sectors. Decline in employment has slowed - with a 5% decrease in employment in the period 2003 - 2006. This was due largely to the basic chemicals and the inks, dyes and pigments sector, however, these organisations now stand in a far more competitive position. The specialty sector has seen a small amount of growth in sales and employment has stabilised. This will remain the most significant component of the chemical sector in the region.

Companies in the cluster annually invest around £2 billion in capital, maintenance and payroll expenditure. In addition there are in excess of 350 companies in the region that provide key support services. 30% of these concern sales and distribution, with others delivering a wide range of services i.e. waste treatment and manufacture of plant and laboratory equipment.

The cluster annually spends about £400 million on innovation and will continue to do so to remain competitive in global markets. It spends about £900 million p.a on maintaining and improving its existing assets. New science is an important feature of this spend.

Chemicals Northwest (formed as the North West Chemical Initiative in March 2000) is an industry-led organisation driving strategic and sustainable development for the 800 chemical and related industries in England's Northwest.

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