Chemical firms will increase their capital spending 8.6% to nearly $8.8 billion, according to an early February survey of 17 companies by Chemical & Engineering News (C&EN). For 2007, C&EN reports that the actual capital spending of the 18 companies surveyed increased by 13.2% to $8.1 billion. Survey results from 14 companies indicate R&D spending will grow 6.0% to $2.8 billion in 2008. The budgets for 2008 indicate that 71.5% of funds will go towards capital projects and 28.5% towards R&D. The American Chemistry Council (ACC) anticipates that 2008 capital spending for basic and specialty chemical companies will increase by 6.3% and R&D spending will increase by 4.4%. The ACC also reports that over the long term, its members will reduce the US share of their total capital spending budgets from 62% in 2006 to 48% in 2011. The Synthetic Organic Chemical Manufacturers also released a survey of its members, with 75% reporting that they would increase their R&D investment between 2% and 10%, with the mean investment being 8.6% of sales. Of those surveyed, 38% claimed that they are very likely or somewhat likely to increase their capital spending for 2008, with a mean investment of 10.8% of sales.

Source: C&EN