Skill shortages could still hold back growth in subsea sector

British subsea companies are reporting strong growth prospects for the next five years but also signs that skill shortages could constrain that growth.

Subsea UK represents specialists in the underwater field serving the oil and gas industry globally.

Its 200 members, who employ about 40,000 people and generate more than £5billion a year in revenue, have just been surveyed on skills and personal development.

Subsea UK chief executive Alistair Birnie said: “It was only a few years ago that the subsea sector faced an acute skills shortage which not only constrained growth but also caused costs to rise significantly.

“After a very challenging economic climate, the industry is once more climbing the growth curve but, if the UK sector is to continue to lead around the world and be competitive we must close the skills gap now and not wait until we are all dipping into a limited pool of resources.”

The survey reveals that more than 90% of companies are forecasting growth in the next five years with 96% reporting that this growth was internationally focused. About 86% are seeking to recruit with almost 67% requiring more skilled and experienced people.

Almost three-quarters of the firms surveyed (74%) needed additional professional engineers. Technicians and apprentices were also in demand with 67% and 57% of firms requiring more of each respectively.

Learning strategies varied across the sector with almost 62% believing distance and e-learning offered an effective means of delivering training and development. Less than 20% of companies regularly used external training organisations or services, however, 60% of respondents felt there was insufficient time available for personal development.

Mr Birnie added: “What is alarming in the findings is that two-thirds of firms are looking for experienced and skilled people rather than taking on new recruits and developing them.

“This is not sustainable and will only result in pushing up prices and reducing our competitiveness. We have to ensure we have the capacity and the competency to meet future growth. There is a growing recognition that skills issues need to take priority but we must turn this recognition into action before it’s too late.”

Subsea UK champions the UK subsea supply chain.

It acts as a focal point for all stakeholders to promote the sector and maximise its opportunities at home and abroad and provides a national forum for collaboration, diversification and technology development.