Now is the best time for North Sea suppliers to move into overseas markets, a Teesside executive has claimed.
Alex Hayward, managing director of Phusion, says the recent collapse in the global oil price is turning investors off from expensive exploration - meaning there’s never been a better time for supply chain firms to think about exporting.
And although overseas trade requires a “firm commitment” and effort from companies, ultimately it’s worthwhile she claims.
The Billingham-based engineering information management specialist has tripled turnover since it decided to focus on export markets in 2008, in the wake of a downturn in North Sea capital expenditure.
The growth was achieved ‘almost exclusively’ through exports, which now represent more than 90% of its sales - and led to Phusion being given a Queen’s Award for Export in 2012.
Alex said: “It is reported there are still many years of work left in UK waters for the offshore industry, indeed, the North Sea saw an all-time record investment in 2013 of £13.5bn.
“However, production must inevitably decline.
“Exporting is considered a natural way to grow your business and now, it could be argued, is a particularly opportune time for companies operating in the North Sea supply chain to use its rich experience to expand into growing overseas markets, which have a huge demand for such expertise.
“We’ve had particular success working on large energy projects in Western Australia, but there are worldwide opportunities.
“Of course, while selling overseas may be lucrative, it requires careful planning.
“Whilst Phusion had some previous experience of exporting, it’s fair to say our approach was fairly tactical, exploiting ad-hoc opportunities that came our way.
“We realised we needed a well-researched and carefully planned strategy if we wanted to achieve sustainable growth in an overseas market.
“Working in foreign markets also requires firm commitment. Be prepared for overseas business to swallow up a huge amount of senior executive’s valuable time.
“Be prepared to meet people on their terms. Western Australia is eight hours ahead of the UK and until we got our office established over there we handled a lot of conference calls in the early hours.”
Available support from organisations like UKTI and NOF Energy is “valuable” she says.
“It’s true exporting requires a lot of effort, but it’s inevitably worth it. Not only will you be able to expand your company, but also make it stronger.
“The lessons to be learned from handling the challenges of overseas requirements will also enhance your business in the domestic market.
“With a growing skills shortage in the engineering and manufacturing fields, you will find that having a foothold in the global market place is a great incentive for recruiting and retaining staff.”
Overseas contracts won by Phusion have included managing engineering information on the massive $34bn Ichthys LNG project, Western Australia.
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