27 January 2010 19:44 [Source: ICIS news]
HOUSTON (ICIS news)--The global chemical industry plans to be more aggressive in research and development (R&D) spending over the next three years than all but one other sector, US accounting firm PricewaterhouseCoopers (PwC) said on Wednesday.
In a survey of 1,198 global industry leaders - including 46 chemical chief executives - 65% of chemical chief executives said they planned to increase their R&D expenditures in that timeframe, higher than all other sectors except entertainment and media (at 74%).
Moreover, 30% of chemical CEOs plan to make “significant” increases in the amount they invest, PwC said.
Likewise, 83% of chemical chief executives plan to spend more on leadership and talent development, with 30% anticipating spending significantly more.
On the global merger and acquisition (M&A) front, the number of chemical companies engaging in cross-border deals is “substantially higher” than other sectors, PwC said.
Overall, 33% of chemical executives surveyed have completed at least one such deal in the past 12 months and 46% plan to do so in the next year, according to the survey.
Of those deals, a majority appear likely to happen with Asian operations. Over the next year, 84% of the chief executives said they anticipated doing more business in Asia, while only 52% predicted more business in ?xml:namespace>
While R&D and M&A spending may increase, costs are likely to be cut in other areas to compensate. Of the chemical executives surveyed, 87% said they aimed to invest more in cost-cutting initiatives over the next three years.
Also, 76% said they would invest more in upgrading strategic technological infrastructure in order to facilitate modern manufacturing and logistics processes.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|