Chemicals

A survey by Chemical & Engineering News (C&EN) finds that 10 chemical companies plan to increase their combined R&D spending 3.6% this year to $7.4 billion, following a 7.8% increase in 2012. Only one of the 10 firms plans to decrease R&D expenditures. Eighteen companies surveyed plan to increase expenditures for plants and equipment by 1.9% this year to $18.7 billion, which is down from last year’s 14.0% increase. Thirteen firms of the companies stated that they plan to increase capital spending. These companies’ capital expenditures as a percentage of revenues will remain the same as last year at 6.2%, according to C&EN estimates, which are based on an estimate of 2.0% average sales growth this year. A 2012 survey by the American Chemistry Council (ACC) found that capital spending by the US chemical industry grew 15.5% in 2012 to $38.1 billion, and that R&D spending rose 3.5% to $58.1 billion. The survey also found that 2013 capital and R&D budgets are expected to increase 14.0% and 4.0%, respectively.

Source: C&EN

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