Offshore Energy: Are Delays Putting UK Supply Chains at Risk

Global Underwater Hub (GUH) is the trade and development body which represents the UK's subsea sector. 

It has undertaken a new study, finding that constant delays to offshore energy and infrastructure projects is posing a significant risk to Britain's energy supply chain.

The report calls for a streamlined strategy to ensure the supply chain stays within the UK.

Supply chain diversification 

Although the UK underwater market has grown to £9.4bn (US$12.4bn), the survey warns that there is a growing risk of the offshore energy supply chain relocating overseas. Current government policy is proving to be negatively impacting the supply chain, with repeated project delays creating extra costs and concerns for energy supply.

The Global Underwater Hub's Business Survey 2025, Minding the Gap, explores various insights from those working in the underwater industry. It provides insights into growth opportunities and confidence rankings, alongside the scale of the market. 

GUH's CEO, Neil Gordon, says: “For much of the last year I have warned of the risk of ‘minding the gap’, where oil and gas projects slow and renewables projects are delayed, creating a vacuum of inactivity that threatens the UK’s world-leading underwater supply chain.

“Our latest business survey shows this is already playing out and, increasingly, there is a real possibility this gap will be filled by fast-moving international projects, drawing away our assets, facilities and skilled personnel. If this is to happen, then a return to the UK will be incredibly unlikely, even when our own projects eventually begin.”

Cause for concern

Even though the UK underwater market is growing - increasing from £9.2bn (US$12.1bn) in 2024 to £9.4bn in 2025 - it has not been able to keep up with demand. 

As sector professionals are feeling apprehensive towards the state of Britain's energy supply chain, Minding the Gap warns that companies may begin to relocate overseas. As confidence in timelines and policy support lessens each day, confidence that the UK supply chain can meet demand is failing. Projects take years to begin, which results in high costs of funds and missed opportunities.

An increase in construction of new projects across a range of markets is behind the growth in the UK underwater market valuation, but this is not all positive. Although the concept of global projects with increasing exports sounds like a step in the right direction, it adds a risk of relocation.

43% of revenue generated by UK underwater supply chain companies comes from exports, demonstrating the value other countries put in British energy. However, this market opportunity across the seas makes it more appealing for companies to relocate to other offshore energy fields.

A call to action

The report calls for a coordinated industrial strategy, creating an action plan to safeguard the UK's underwater supply chain. It recommends: accelerating domestic project delivery, enhancing policy certainty & support, strengthening the skills pipeline and promoting strategic diversification. 

By implementing these changes, the UK will see an improved, more resilient industry, with greater efficiency and resources. Through strengthening the skills pipeline, there will be an improved supply chain, with an appropriately skilled workforce.

If appropriate action is not taken, there will be further delays, higher costs of failed projects and a greater risk of offshore movement.

Neil concludes: “This is a pivotal moment. We need a coordinated industrial strategy, targeted investment and a sustainable skills pipeline to keep the UK at the forefront of underwater innovation.

“Stakeholders must act now to align policy, project flow and investment with the supply chain’s readiness and ambition. The opportunity is clear, but so is the risk.”