LONDON, Aug. 8, 2019 /PRNewswire/ -- In the looming wake
of a no deal Brexit, energy supply chain companies are still
finding exporting to new markets to be their hardest growth
strategy according to a report released today by the Energy
Industries Council (EIC).
For the third year running EIC member companies surveyed in the
report are shying away from investing in new export markets as
their growth strategy, with business leaders still perceiving it as
the riskiest strategy with the slowest return to profit, preferring
to adopt alternative growth strategies such as innovation, digital
and diversification.
In 2019 only 12% of companies interviewed exported their way out
of a crisis compared to 19% in 2018.
The 'Survive and Thrive 2019 Insights Report' published
by the EIC, provides a listing of companies and detailed analysis
of eight strategies they have employed to grow against a backdrop
of a cautious oil and gas market recovery, growing focus on
decarbonisation, and Brexit uncertainty.
EIC CEO Stuart Broadley
commented: "Our research shows Brexit is a having more of
an impact now. Sometimes positive, companies who are net exporters
are really seeing growth benefitting from the weak sterling. On the
negative side, more companies are getting frustrated by the lack of
inaction around Brexit, damaging their growth prospects in new
export markets and Europe in
particular. There is a real possibility UK suppliers may need to
look for new markets soon."
Other key findings in 2019 include:
- 32% of companies surveyed cited as impacted by Brexit;
- 36% of companies diversified across the energy spectrum;
- 64% percent of companies surveyed cited technology and digital
as their most used strategy for survival;
- 60% of companies used a service and solution strategy.
The strategies put in place in the 2019 edition of Survive and
Thrive have generated a massive £1.8bn in savings and new
orders.
The EIC recently held its inaugural Energy Exports Conference in
Aberdeen as a key action in light
of the findings in this and previous years' reports, aiming to
kickstart export growth in energy, and inspire the next generation
of exporting business leaders, by attracting major operators such
as Aramco, ADNOC, BP, Petronas, Shell and Wood who
presented more than US$150bn of
global project opportunities requiring UK products and services.
To read the full report
visit: https://www.the-eic.com/portals/0/Website/Publications/InsightReports/SurviveandThrive3-report.pdf
You can watch a snapshot summary of the report here:
https://youtu.be/zKyTpgP44cE
Survive and Thrive strategies identified in 2019 - The
eight strategies being put to good use by the companies surveyed
are: innovation (the most used strategy at 64%), followed by
service and solutions (60%), optimisation (48%), diversification
(36%), digital (32%), technology (28%) and export (once again the
least used growth strategy at 12%).
For more information or to request a media interview with
Stuart Broadley contact:
Lucy
Chakaodza
Communications & Media Manager
Tel: +44 (0)20 7091 8638
Email: lucy.chakaodza @the-eic.com
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