Business Outlook 2019

BUSINESS OUTLOOK 2019

Collaboration has been shown to provide opportunities to unlock new projects and recent data indicates that the collaborative efforts of industry have been sustained throughout 2018, evidenced by an increase in the OGUK and Deloitte Collaboration Index score from 6.1 to 7.1 between 2015–18. 14 The results show that the majority of companies now recognise that collaboration is integral to improved business performance and realising new opportunities.

Along with the industry Cultural Change Champion, OGUK's Efficiency Task Force (ETF) is leading industry efforts to improve collaboration and sustain the efficiency improvements seen in recent years. 15

5.5 Employment Trends It is estimated that in the region of 40,000 new people will need to be attracted to the industry to achieve Vision 2035, a quarter of these into roles which currently do not exist. In order to achieve this, the industry needs to be seen as being diverse, innovative and forward thinking. 16 A survey of OGUK member companies indicated that almost half of companies are expecting to see some increase in headcount throughout 2019, with only 10 per cent expecting to reduce employee numbers further. However, there are concerns over the ability of some companies to attract and retain the skills to manage and grow their businesses effectively. More than half of survey respondents reported that they expect this issue to have a negative impact on their business in 2019. It should be noted, though, that this is likely to be in specialist, technical disciplines and is not necessarily indicative of general trends across industry. Conversely, almost half of organisations who responded see no issues with regards to attracting and retaining skilled personnel.

Figure 30: Snapshot of Contractor Company Employment Trends for 2019 Versus 2018

Figure 31: Snapshot of Contractor Company Skills Issues

Expecting to increase i i

Remain around the same

Further reductions

i

i

No issue in attracting and retaining skills No issue in attracting and retaining skills

No impact No impact

Some negative impact Some negative impact

Significant impact Significant impact

Source: Oil & Gas UK

Source: Oil & Gas UK

Source:Oil & Gas UK Source:Oil & Gas UK

Source:Oil & Gas UK r : il

14 www.oilandgasuk.co.uk/wp-content/uploads/2018/08/Deloitte-UKCS-upstream-supply-chain-collaboration -survey-2018.pdf 15 Further information can be found on OGUK’s Efficiency Hub www.oilandgasuk.co.uk/efficiencyhub/ #efficiency-hub+category:efficiency-task-force 16 www.opito.com/policy-and-research/research/ukcs-workforce-dynamics-review

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