ABERDEEN, UK – Subsea UK claims in its latest report that the UK subsea supply sector is delivering annual revenue currently of £7.5 billion ($10 billion), down from £8.9 billion ($11.94 billion) in 2014.
Employment across the sector has also fallen to around 45,000 jobs, compared to roughly 53,000 three years ago.
Exports account for 55% of annual revenues, while offshore wind-related sales have risen from £770 million ($1.03 billion) in 2014 to £1.3 billion ($1.74 billion) at present.
The association claims its 300 members make up the bulk of theUK’s subsea supply chain.
Chief executive Neil Gordon said: “The oil price crash and subsequent, prolonged downturn globally which led to the deferral or cancellation of major subsea projects, particularly indeepwater, has had a material impact on revenues…
“However, thesubsea sector appears to have weathered the storm by increasing exports and diversifying, particularly into offshore wind, where the skills and technology are eminently transferable.”
For SMEs, Southeast Asia is the prime export market, followed by the Gulf of Mexico and the Middle East, Scandinavia, and West Africa.
However, respondents expected Southeast and Central Asia to become more important in the future, along with the Caspian and the Middle East.
Around 80% of large companies expect to grow exports in the next three years, with one-third expecting 10-20% increases and one-fifth more than 20%.
Meanwhile, 65% of SMEs believe they will increase exports, mostly in the range 10-20%, while over expect to grow exports by more than 20%.