Scotland's oil and gas supply chain companies enjoyed record sales of £22.2 billion in 2013, an increase of 11%.
A global hub
Looking ahead the sector faces some considerable challenges. Cost efficiency and collaboration will be key in helping to address these, as well as focusing on our competitive advantage internationally, in decommissioning and emerging areas such as digital offshore. We are a global hub and we want to remain so for many years to come.
David Rennie, SDI
And our international activity continued to grow with sales increasing by 12% to £11.2 billion.
The latest findings of our annual survey of international activity in Scotland's supply show that international trade accounted for a record 50.3% of total sales, echoing the findings of our recent global perceptions survey that Scotland is a recognised global hub of industry expertise.
David Rennie, our international head of oil and gas, said:
"Our annual supply chain survey clearly demonstrates the importance of Scotland’s oil and gas sector to the Scottish economy. Although the figures predate the recent sharp fall in oil prices, it’s important to highlight that the sector successfully delivered another record performance in 2013.
"This is a real endorsement of the industry’s world-renowned reputation, built up over 50 years in one of the world’s most demanding environments."
North America remains biggest market
North America remained the biggest market for Scottish supply chain companies in 2013:
- Total sales in North America rose by over a third to £4.1 billion
- The USA remains the top market for international sales with a total value of £3.07 billion
- Canada is the third biggest international market for supply chain sales, with total sales increasing by 11% in 2013
- 50% of respondents expect North America to be in the top five future growth markets
Our international activity survey reinforces the findings of our recent global perceptions survey which found that 88% of US respondents prefer working with Scottish suppliers and contractors and 55% of global respondents expect their relationship with Scotland's oil and gas industry to grow.
Shannon Norstrud, our oil and gas manager in the United States, said:
"The results of this survey can be a real source of optimism for Scottish oil and gas supply chain companies active in North America. The USA continues to be number one in international sales with Canada third and together both countries have increased their attractiveness as a future growth market.
"This is all a powerful demonstration of the major role that the USA and Canada continue to play in the global oil and gas market."
Asia Pacific enters top three markets
For the first time the Asia Pacific region entered the top three markets for international sales, with a value of £1.7 billion and an optimistic outlook for future growth:
- Singapore was the second highest market for international sales
- Asia Pacific is ranked as the fourth highest region for growth in the immediate future
- 50% of respondents reported Asia Pacific as a growth opportunity in the next five years
Neil McInnes, our head of South East Asia, said:
"Our survey highlights the growing importance of the Asia Pacific region to Scotland’s oil and gas supply chain.
"The fact that Singapore rose 19 places to become the second most popular country for international supply chain sales reflects the importance of this market for the future of the industry and we continue to see a high volume of enquiries from Scottish companies looking to establish operations and do business here.
"Our focus will continue to support positive partnerships between Scottish and Asian companies so we can capitalise on the growth of the Asia Pacific market."
Supporting international trade
Our survey, delivered by Aberdeen and Grampian Chamber of Commerce and sponsored by Johnston Carmichael, combines feedback from 434 businesses with operations in 137 countries around the world.
It demonstrates once again that Scotland's experience and expertise can help maximise the potential of global oil and gas markets.
And we're here to help.
Our network of industry experts can help your company identify suppliers and partners in the Scottish supply chain, delivering the products and services that can meet current industry challenges.
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Read our international activity survey (PDF, 3MB)