A July survey of 156 chemical industry senior executives found that 63% plan to increase capital spending next year, with 81% of Asian executives expecting to do so. In 2012, 38% of executives expect to invest between 3% to 5% of revenues in R&D, while 31% expect to invest between 2% and 3%. Eighty percent of all executives expect revenues to increase in 2012, and 65% plan to hire more workers. For 35% of executives, the highest priority for investments is new products, and for 33%, it is acquisitions. For 78% of respondents, the biggest driver for growth over the next one to three years is expected to be new market expansion, while 55% expect it to be new products, and 52% expect it to be organic growth. In 2012, 78% of executives plan to focus the majority of their investment capital in China, with the US the focus for 63% of executives. Forty-eight percent and 28% of respondents expect China and India, respectively, to have the highest rates of growth for the chemistry industry among emerging markets over the next five years.

Source: KPMG