Survey warns firms may relocate overseas
Frequent delays to offshore energy and infrastructure projects are threatening the viability of the UK supply chain, according to Global Underwater Hub’s Business Survey 2025.
The study said 96% of respondents believe work in oil and gas, offshore wind and defence is moving too slowly, while 81% think developments are not progressing at the pace the country needs.
The report, titled Minding the Gap’, warned that 82% of the sector feels UK supply chain capacity is not aligned with demand.
GUH said its annual survey provides insight into the scale of the market, growth opportunities and confidence alongside views from companies across the underwater industry.
Neil Gordon (pictured), GUH chief executive officer, said: “For much of the last year I have warned of the risk of minding the gap’, where oil and gas projects slow and renewables projects are delayed, creating a vacuum of inactivity that threatens the UK’s world-leading underwater supply chain.”
He said: “Our latest business survey shows this is already playing out and, increasingly, there is a real possibility this gap will be filled by fast-moving international projects, drawing away our assets, facilities and skilled personnel.”
He added: “If this is to happen, then a return to the UK will be incredibly unlikely, even when our own projects eventually begin.”
The report said the size of the UK underwater market has grown from £9.2bn in 2024 to £9.4bn in 2025, driven largely by construction of new projects in global markets.
GUH said exports account for 43% of all revenue generated by UK underwater supply chain companies but warned this brings risk.
Mr Gordon said: “Our research shows that companies increasingly view greater prospects internationally than domestically, with shorter timelines, supportive government policy and greater volume.”
He said: “A sea-based supply chain is, by nature, highly mobile and, unless things improve in the UK, then it seems inevitable that companies will consider not just exporting to other regions but relocating there.”
Ahead of the Autumn Budget, the report calls for four actions: accelerate domestic project delivery, enhance policy certainty and support, strengthen the skills pipeline and promote strategic diversification.
Mr Gordon said: “The UK has a supply chain with the capability and capacity to lead, but confidence in project timelines and policy support is eroding.”
He said: “Major industrial projects take years to mobilise, and we risk repeating past declines that cannot be reversed overnight.”
Mr Gordon added: “This is a pivotal moment.”
He added: “We need a coordinated industrial strategy, targeted investment and a sustainable skills pipeline to keep the UK at the forefront of underwater innovation.”
He said: “Stakeholders must act now to align policy, project flow and investment with the supply chain’s readiness and ambition.”
He added: “The opportunity is clear, but so is the risk.”
