It was a year of change for much of the world. Elections held in more than 60 countries – many of which yielded seismic results – have irreversibly shifted the political dial and no sector, subsea or otherwise, is free from the shocks.
Fiscal and economic uncertainty have been part and parcel of the UK in recent years and, sadly, that appears to be one of the few things that isn’t changing.
There is a dark cloud over much of the country, but even within that there are more than a few rays of light.
Among the headline findings to emerge from Global Underwater Hub’s recently released 2024 Business Survey was that the UK’s underwater industry has grown by 15% since 2019, and is now worth £9.2bn and supports 51,000 jobs.
The mood in the subsea supply chain is relatively buoyant, with over half (57%) of respondents to our survey confident that roadblocks to success can be overcome, while overall market prospects remain high, spurred on by the wide range of opportunities across the subsea sector, most notably offshore energy.
Everyone should be enthused by the fact that we have a sector ripe with potential and capable of steering the energy transition right on our doorstep. But things are rarely that simple.
Without firm government action to ensure project certainty and attract sustained investment, these unmatched potential risks are being squandered.
Optimism about supply chain capacity is being overshadowed by growing unease over project timelines.
Industry stakeholders believe that 62% of projects will face delays, eroding the confidence needed to align investment and business strategies.
With only 11% of surveyed companies seeing sufficient policy and financial commitment, many UK-based firms are weighing up the prospect of relocating overseas.
Decisive action at the highest level is needed, or else the UK risks exporting not just technology and expertise, but the high-paying jobs and economic benefits they generate.
GUH’s ask of government is simple: deliver an industrial strategy that leverages the UK’s underwater industry’s excellence, maximises its competitive advantage, and ensures it maintains its edge in global markets.
This strategy must include clear policies, timely approvals, and robust financing mechanisms to translate concepts into completed projects.
The stakes are high. The sector’s ability to service a mix of underwater markets is a unique advantage that could make the UK a hub for clean energy and industrial innovation. But this requires an investment-friendly environment, something that is sorely lacking.
Without this, our world-leading position will erode, along with the share of the jobs and wealth the industry creates.
Looking ahead, February is a pivotal month in the subsea calendar when our annual, flagship exhibition and conference – Subsea Expo – takes place at P&J Live.
This is when we unite the underwater industry to showcase innovation and foster collaboration.
The key themes from our survey will be discussed in our sessions, offering an invaluable chance to dive into the issues affecting our supply chain against the backdrop of massive opportunity.
GUH will be encouraging policy-makers to visit Aberdeen for the conference, where they will be able to see first-hand how vibrant and innovative the UK’s underwater sector is.
The UK government is committed to growing the economy and the country’s underwater industry – be that across energy, defence, aquaculture or telecommunications – can play a major role in achieving further significant growth. But only if we have positive market signals that allow subsea companies to make investment decisions.
Neil Gordon is the chief executive of trade body, Global Underwater Hub
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