The return to business activity following more than two years of the pandemic has ignited a rapid increase in demand for materials, goods and services.
This situation, augmented by the Russian invasion of Ukraine, has triggered an unprecedented supply chain backlog across many industries around the world. According to management consulting firm McKinsey & Company, supply chain upheavals show little sign of abating.
Critical sectors including agriculture, automotive, energy and food have all suffered supply chain shortages in recent months. In the energy sector, this is creating project delays, increased downtime and even postponements while some operators are forced into extended waits for equipment, tools and machinery.
Meanwhile, the pressure on the energy supply chain grows. The UK Government, having reaffirmed its commitment to the North Sea and announced plans for another oil and gas licensing round later this year, continues to sanction more projects in the region. More projects mean a greater need for more equipment.
During the pandemic the widespread down manning of oil and gas installations led to a delay for asset fabric maintenance in some instances. Now, with operations returning to full swing, the need to progress some of these maintenance projects is pressing to the point of being critical for safety.
One of the biggest challenges currently facing original equipment manufacturers (OEMs) in the energy sector is the acquisition of electrical components such as microchips or printed circuit boards (PCBs). Another is the dramatic rise in raw component prices including aluminium, copper, and electronics. Even packaging has seen a significant price rise since the start of this year.
However, supply chain companies with structural resilience built into their business model have a better chance of weathering the short-term backlog in components and raw materials while enabling their customers to maintain operations.
Like many businesses, Dräger Marine and Offshore, a subsidiary of Dräger, an international leader in safety technology, has witnessed challenges in the energy market in recent times in the supply of new equipment. However, thanks to long-term forward thinking and investment in an extensive hire fleet of safety equipment, Dräger Marine and Offshore continues to have enough products and manpower available within its hire department to offer solutions to the industry in these challenging times.
Dräger Marine and Offshore is a complete safety solutions provider, offering a range of HSE-compliant critical firefighting, rescue and safety equipment to protect and save North Sea lives. It has one of the biggest fleets of safety critical equipment in the world to support a wide range of energy industry sectors including oil and gas, nuclear and wind.
A long-term repositioning of the business, including the development of a rental fleet to complement its manufacture-to-order offering, has fortified Dräger Marine and Offshore with the resilience to ensure the continued availability of its safety critical equipment and the avoidance of lengthy lead times for customers. This means Dräger has equipment available for customers to rent now – something no other company can support with.
The decision to develop its product rental offering coincided with the company’s establishment in Aberdeen 12 years ago. Dräger Marine and Offshore remains the only safety equipment manufacturer based in Aberdeen. This gives it a clear picture of order progress from the shop floor to the customer, with additional customer peace of mind due to supply chain security.
The Aberdeen business provides a full scope of safety critical products and services including equipment sales, training facilities (including confined space entry and working at height facilities), training courses (including Authorised Gas Tester, BA wearer and maintenance training), a rental stock warehouse supporting short-term equipment needs, offshore maintenance facilities and a service/maintenance centre.
High demand products and services include portable and fixed gas detection systems, breathing apparatus, respiratory equipment and life saving equipment (immersion suits and life jackets) and the servicing of safety critical equipment offshore. Dräger Marine and Offshore has a team of offshore trained service engineers and technicians available 24/7.
The growth of the business in Aberdeen, including a seven-fold rise in turnover since 2010 and a personnel increase from three to 35, prompted the recent move from Bridge of Don into significantly bigger facilities in ABZ Business Park, Dyce. The new location includes a greatly increased warehouse to house several thousand rental products and enhanced space for client training and a new training academy.
Despite current pressures, the energy supply chain companies like Dräger Marine and Offshore are demonstrating that it’s still possible survive and thrive. By thinking long term and building in resilience, suppliers can continue to support the industry towards greater stability, now and beyond.
