Chemical companies in the US and Europe plan to increase their research and capital spending in 2014, according to a survey conducted by Chemical and Engineering News (C&EN). This year will mark the fifth year of capital spending increases for 20 major chemical firms. Their total projected expenditures for facilities and equipment in 2014 is $21.1 billion, up 4.9%. In 2013, capital spending rose 3.0% to $20.1 billion. C&EN predicts their capital spending as a percentage of sales to be 6.3% in 2014. Seven of the companies plan to spend a combined $7.07 billion on R&D in 2014, an increase of 2.0%. In 2013, their R&D spending rose 4.4% to $6.93 billion. This is the fourth consecutive year in which their research budgets have risen. Their research and capital budgets will total $19.7 billion in 2014, an increase of 5.6%.Despite this rise, as a percentage of total future-oriented expenditures (capital spending plus R&D), research budgets will be their lowest in the past 10 years at 35.9%.

Source: C&EN