Chemical industry releases report on global megatrends

The Plastics and Chemicals Industries Association (PACIA) launched its foresighting report ‘Elements in Everything: Current profile and future trends for the Australian chemicals and plastics industries’ at Parliament House in Canberra this week.

The independent report, written by CSIRO, is the first part of PACIA’s Strategic Industry Roadmap that aims to identify and address the megatrends that will influence the future of chemicals and plastics in Australia and the policy responses required to meet those challenges.

The six global megatrends are:

• Emerging markets
• Resource scarcity
• Food for all
• Responsible industry
• Health and wellbeing
• Technological advances

PACIA Chief Executive Margaret Donnan said, “Our industry will be at the heart of meeting the challenges and opportunities posed by these megatrends. Just about everything we consume has elements of chemicals and plastics.”

Chemicals and plastics are the building blocks of Australia’s modern economy and play an important part in the country’s economic, social and environmental wellbeing. The industries supply products and services to 109 of Australia’s 111 industries.

The report also identifies, from an industry perspective, fundamental needs that are essential to sustainable chemicals and plastics industries in Australia: social licence to operate; strong customer base; innovation and strong intellectual property; skilled and productive talent; competitive capital, feedstocks, energy and utilities; stable government; and a balanced regulatory environment.

“Above all, there are two fundamentals that are critical for our industry and our capacity to respond to the megatrends. The first is energy and feedstocks. Without access to competitively priced feedstock, and the energy for the conversion process, there will be no Australian chemicals and plastics industries,” said Donnan.

“The supply of gas has become a major concern for chemicals and plastics as natural gas is the building blocks for the products manufactured by the chemical industry. The ability for our industry to supply the products required by other industries is therefore being severely compromised, which will have ripple effects throughout the economy.

“The second is the need for a balanced, effective, world-class regulatory system. Progress in this area has been slow, the burden remains high and the costs are comparatively astronomical. This means better, safer, cleaner chemicals are not finding their way on to the Australian market and given our critical role in supplying all other industries, the entire economy is suffering as a result.”

Australia’s chemicals and plastics industries directly employ 70,000 people and have a turnover of $40 billion. It is the second largest manufacturing sector in the national economy.

The second independent report from PACIA’s Strategic Roadmap: Strategic Directions and the Roadmap will be released at PACIA’s National Conference at the Langham Hotel, Melbourne, in June this year.