Offshore wind supply chain remains upbeat for growth despite challenges – London Business News | Londonlovesbusiness.com

A survey of supply chain companies carried out by the Offshore Renewable Energy (ORE) Catapult has showed that confidence in future growth and overcoming challenges remains high.

The survey results show a need for greater visibility of market opportunities, as well as initiatives to overcome skills shortages, as ways of further increasing supply chain confidence going forward.

The third edition of ORE Catapult’s annual supply chain confidence survey involved over 150 companies ranging from micro-SMEs through to large manufacturers, all of whom play a role within the UK’s offshore wind supply chain.

The results show that 80% of respondents expect to increase their offshore wind workforce within the next 1-3 years. This rises to 89% in the period up to 2030.

The results also show that companies with a majority renewables focus of operations have increased their confidence levels compared to last year, with 54% saying they had increased confidence in the sector, compared to 48% in 2023.

Among companies with a majority oil and gas focus, however, the picture is more mixed. With 73% saying their level of confidence was either higher or remained the same, compared to 81% in 2023. Despite this, respondents from oil & gas companies still remain optimistic about future growth in offshore wind up to 2030.

Andy Macdonald, Director of Development & Operations at ORE Catapult, said: “This year’s survey provides valuable insights at a crucial time for the development of the offshore wind sector in the UK. There have, of course, been well publicised challenges in the sector in the last year, which are reflected in the results, but there clearly remains strong resilience within the supply chain.

“The fact that eight out of ten offshore wind supply chain companies see their businesses growing over the next few years is something which many other sectors would love to see, but there remains a lot to be done to deliver this growth.

“The Industrial Growth Plan provides a vehicle for the UK to come together and agree ways in which we can maximise our economic potential from offshore wind.  This survey helps us to understand the requirements of the supply chain and how we can help UK businesses to flourish.”

Recommendations to increase supply chain confidence

The survey identified skills shortages as a significant challenge across the supply chain in need of action, with 46% of respondents saying it is currently having a significant impact on their potential future growth. Therefore, there is a clear need for targeted skills development initiatives which can address gaps in the most pressing areas.

The survey report concludes that there should be additional support for priority occupations, a renewed focus on just transition, cluster-based partnerships and continuing to develop a diverse and inclusive sector. This should sit alongside a target of 5% of employees being in apprenticeships by 2030.

Another key recommendation is for a single national portal outlining all upcoming project opportunities, to be established as soon as possible, which can provide supply chain companies with full visibility of future opportunities. This should work alongside increased investment in tailored programmes to facilitate transition into offshore wind from other sectors.