One of the fastest-growing sectors in recent years, the subsea industry is set to continue on its upward curve in 2013. One of the few industries to demonstrate high growth through the recession, the subsea sector is enjoying a positive long-term outlook with the global market predicted to increase by 100% over the next five years to £40billion.
Neil Gordon, chief executive of Subsea UK, said: “The challenge we in the UK face is to retain a third of that growing global market share and maintain our world-leading position.
“While Aberdeen City and Shire will remain a recognised subsea centre of excellence, with the highest concentration of subsea companies in the UK, other regions throughout the UK are increasing their subsea engineering and manufacturing capabilities and it is this nationally connected supply chain that is key to our success.
The North Sea has become a recognised test bed and seat of learning for subsea technology and expertise and 2013 will see unprecedented levels of subsea activity in this mature province.
Mr Gordon said: “As we now pass the half-way point of the UKCS’s life expectancy, focus naturally shifts to other areas of the industry; integrity management has seen strong growth particularly as we look at extending the life of already matured assets. Order books for the main contractors’ vessel activity are healthy for the next two years and the export market continues to be very strong in all regions. Many companies are exporting in excess of 80% of their turnover and Subsea UK is working in partnership with UKTI and SDI to help firms export to, and exploit, both established and emerging foreign markets.
“Looking forward, we expect to see firms move increasingly into deep water territories, over 500 metres and in many cases up to 3000 metres below the surface. Whilst there are considerable risks inherent in exploring and extracting at this particular depth, it brings with it huge financial returns as this is where the large fields are situated.”
With the continuing growth however, comes the challenge of attracting and retaining new talent. A recent survey of Subsea UK members revealed that the industry could require another 10,000 people in the next year, but realistically it would take longer to build this increase into the sector.
Government is increasingly realising the economic benefit the industry brings in terms of jobs and with investment, such as the Skills Development Scotland funding recently secured by Subsea UK, members will be able to develop initiatives which will push for the recruitment and development of experienced personnel via transitional and conversion training programmes.
Mr Gordon added: “This will ensure that we not only address the acute skills shortage in the short-term, but that we establish a sustainable pipeline of skilled workers to guarantee the long-term health of the industry.”
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