Diversification. It’s a word we have frequently heard in the oil industry, especially in the past few years, but what does diversification look and feel like in practice for a business like ours?
One dictionary definition of the word is “to make diverse or varied” and, using the lessons learned from our long and rich corporate heritage, we have worked hard to position our company to tap into new sectors.
The result is a successful increase in revenues, thus helping to insulate us against any further downturn in the Capex market.
For us, the focus of our diversification strategy has been to look at spreading our traditional income stream from one main customer to a broader portfolio of clients – and the results speak for themselves.
Since the beginning of this year, our order intake has doubled over the same period last year and continues to build on a month-by-month basis. Simultaneously, our headcount has increased to 32 people to cope with the growing demand for our products and services.
Our concentrated effort to broaden and diversify our corporate horizons has been bolstered by international demand for subsea tree parts and we have also successfully developed a new revenue stream focusing on minor structural steel repairs in the UKCS. Also bringing success is the marine market, where a fast-track, rapid turnaround approach is paying dividends in the target areas of vessel mobilisations and marine construction projects.
Diversification takes many forms and can mean many things to many organisations.
For us, the key has been a balance of traditional and new income streams and successfully achieving this equilibrium means that we now look to the future and its possibilities with confidence and optimism.
Denholm Engineering is a market leader in fabrication, machining and the coating of components and equipment for the energy and other key sectors. Its headquarters are home to a highly-skilled team of engineers, fabricators and welders who use cutting-edge technology to deliver bespoke, turnkey solutions for clients in onshore and offshore locations. To find out more, call +44 (0) 1224 770445, email email@example.com or visit www.denholm-engineering.com
Bruce Gill is director of Denholm Engineering