Member Article

Subsea industry faces fierce international competition

Subsea companies in the UK have shown confidence in the next 12 months, as some anticipate more than 50% growth.

A survey by industry body, Subsea UK, quizzed members and found that almost half expect to grow by 30%, and a third by more than 50%, although companies suggested international rivals were strong.

Almost 90% of respondents saw turnover and profits rise in 2012, identifying sustained high oil price; increase in global demand and the introduction of new technology, as drivers of growth.

The fastest growing segments in the industry were inspection; repair and maintenance; integrity and reliability; decommissioning; and offshore wind.

Neil Gordon, chief executive of Subsea UK said: “Subsea continues to be the unrecognised jewel in the crown of British industry. The sector is one of, if not the, fastest growing in the country and these findings will come as no surprise to the oil and gas industry as whole.

“Several respondents anticipate growing by over 75% in 2013 and many of our small, entrepreneurial companies focused on niche products and services are set to double or treble in size.”

Respondents noted that international competition was becoming fierce, with the likes of Norway and the US challenging the UK’s strong industry standing.

Subsea UK members were asked to rank overseas markets in order or priority. Norway came out top with 25% indicating it was their focus over the next few years, followed by the US at 24%, Brazil with 20%, and less than 12% cited the UK North Sea as a priority area.

Mr Gordon added: “Well over 50% of UK subsea output is already exported and that is set to increase as the global market expands and our companies seek to build on the UK’s reputation insubsea.

“Subsea UK is working hard to assist companies break into new markets and the international delegations led by UKTI from various countries at today’s event will prove invaluable to many of our members.

“However, there is a stark warning in the survey from members increasingly concerned about the UK’s competitive edge. With other countries receiving significant support and funding from their Governments for the development of new technology, we risk losing out.”

This was posted in Bdaily's Members' News section by Tom Keighley .