Report suggests 9,000 more jobs in UK underwater engineering industry by 202204 February 2020

The underwater engineering industry in the UK is set to recruit nearly 9,000 people in the next three years, according to a new report from Subsea UK.

The industry’s body, which unveiled the results of its Business Activity Review for the fiscal year 2018/19, says that while employment figures remain fairly static – rising from 45,033 in 2017 to 45,163 – the forecasts for the next 12 to 36 months are more promising with almost 80% of companies anticipate ramping up recruitment, suggesting employment could rise to over 54,000 by 2022.

The majority of these jobs will be in North-east Scotland, where 63% of the industry is based. However, the North-east of England, where the subsea industry supports 15,000 jobs, will also see a considerable increase in recruitment, according to the report.

From 2003, when the first Subsea UK Business Activity Review was conducted, the industry grew year on year, reaching a peak output of just under £9 billion in 2013, which supported 53,000 jobs. A sharp decline, reported in 2017, was a direct result of the collapse in oil price which led to the deferral or cancellation of major projects around the world by oil and gas exploration and production companies.

Neil Gordon, chief executive of Subsea UK, says: “The last five years have taken their toll on those subsea companies predominantly operating in oil and gas. But the findings in this business activity review reveal that the UK subsea industry has weathered the storm. The decline has been arrested with a clear upturn in activity, largely due to an increase in output from subsea SMEs and more activity in renewables, particularly offshore wind.

“The growth projections provided by both the Tier 1 companies and SMEs reveal much greater optimism, due to both the recovery in oil and gas and the opportunities presented by the energy transition.”

Additional findings show that the total value of UK subsea output has increased to almost £7.8 billion from £7.5 billion in 2017.

The full report, ‘Into the Blue: UK Subsea Business Activity Review 2019’, was unveiled ahead of the annual event Subsea Expo (11-13 February, P&J Live, Aberdeen).

Adam Offord

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