Business Outlook 2017
BUSINESS OUTLOOK 2017
4.1 Financial Performance Average supply chain revenues have decreased by more than 30 per cent since 2014 from £41.3 billion to £28.3 billion in 2016. However, there are stark variations in company performance across and within sectors of the supply chain, with respective specialisms and the ability to control costs being key differentiating factors. Some companies have grown over the last two years by diversifying product ranges and expanding into new geographies and sectors, while others have been constrained by more rigid business models and have contracted in size or liquidated. Statistics from the Department for Business, Energy & Industrial Strategy show that the number of annual insolvencies within the oil and gas supply chain has more than quadrupled since 2013, peaking in the second quarter of 2016. It is vital for the economy that the number of companies leaving the industry does not create a capability gap that cannot be filled in a timely manner should demand within the sector recover.
Figure 4: Supply Chain Revenue by Sector
Facilities Marine & Subsea Wells Services Support & Services Reservoirs
Turnover (£ Billion - 2016 Money)
2009 2010 2011 2012 2013 2014 2015 2016 2017
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