Subsea Companies Across the UK Set to Grow in 2013

Subsea companies across the UK are set to grow by 20% or more in 2013, with some companies anticipating more than 50% growth. During last February a survey of Subsea UK members revealed that 100% of firms are predicting significant growth in the next 12 months. Almost half expect to grow by 30% and a third by more than 50%. Almost 90% of those surveyed saw turnover and profits rise in 2012 with over half reporting growth of 20% and a fifth reporting more than 50% growth.

2013.04.16 - Subsea Companies Across the UK Set to Grow in 2013

The key drivers for growth identified were:

  1. a sustained high oil price
  2. an increase in global demand 
  3. the introduction of new technology and innovation which are leading to more developments becoming viable

The fastest growing segments in subsea are:

  1. inspection
  2. repair and maintenance
  3. integrity and reliability
  4. decommissioning
  5. offshore wind

The biggest challenge facing the sector is recruiting and retaining skilled people with 88% citing this as their foremost constraint.

Other challenges reported by 15% or more respondents were:

  1. access to finance and working capital in particular
  2. finding suitable premises
  3. controlling costs and managing growth

Around 80% felt that the UK was still the world-leader in subsea but 12% warned that competition was becoming increasingly fierce and other countries like Norway and the United States were challenging that position.

The main international markets for UK subsea companies are:

  1. Norway
  2. Brazil
  3. United States
  4. South-east Asia
  5. Australia
  6. West Africa
  7. Middle-east

Respondents were asked to rank their overseas markets in respect of priority, thus the following order was revealed:

  1. Norway (25%) 
  2. US (24%) 
  3. Brazil (20%)
  4. UK North Sea (<12%)

Source: Subsea UK

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