Growth in the subsea sector is here for the long term but UK firms in the industry are facing constraints and threats, a survey revealed yesterday.
Neil Gordon, chief executive of trade organisation Subsea UK said members expected to grow by more than 20% in 2013
The survey of 250 Subsea UK members also revealed that one-fifth of them had already seen growth of more than 50% in 2012.
Speaking at the Subsea 2013 show in Aberdeen, Mr Gordon said: “Subsea continues to be the unrecognised jewel in the crown of British industry.
“Well over 50% of UK subsea output is already exported and that is set to increase. Many of our small, entrepreneurial companies are set to double or treble in size.”
Firms like ROVOP, set up in 2011 and showing off its latest investment, a 150hp Schilling HD-operated vehicle capable of working in waters up to nearly 10,000ft, is one of many firms experiencing growth in the sector.
Neil Saunders, of GE Oil and Gas’s subsea business, who was also speaking at the event, said growth drivers in the industry were set to be long term and not cyclical.
Steadily rising global demand for energy and robust expectations of a an oil price between $90 to $120 a barrel were driving the sector in the long term, he added.
Mr Gordon said that while UK companies accounted for about one-third of the £12.8billion global subsea market, Norway and the US were seen as challenging the UK’s position as market leader.
Recruiting and retaining skilled people were cited as the biggest constraint to growth.
Other challenges included access to finance, finding suitable premises, controlling costs and managing growth.
Subsea UK’s survey highlighted technological innovation as another key to accessing reserves, however, outlining the results, the trade body said: “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.”
Subsea 2013 continues today at Aberdeen Exhibition and Conference Centre.
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