The North East’s offshore wind supply chain could create 4,500 new jobs in the next five years to support the growing renewables industry, new research suggests.
The first Supply Chain Mapping survey saw 228 North East England companies take part to outline their plans for the next few years.
The businesses collectively employ 14,300 in the region, of which 4,300 are involved in offshore wind. Between now and 2025 they expect to create an additional 4,500 jobs in offshore wind with targets to include 1,200 women, 1,000 graduates, 600 apprentices and 550 ex-forces personnel.
They also said that turnover in their offshore wind activities would more than double to £2.2bn in the same time period.
In 2020, the combined turnover of the companies that responded to the study is £5bn, of which 20% (£1bn) relates directly to offshore wind. That total sales figure is expected to reach £6bn, with the share of offshore wind activity increasing to 36% (£2.2bn).
Energi Coast and the North East England’s supply chain cluster is one of the most mature in the industry with a number of companies involved in the sector since its inception, with many making the transition from oil and gas to offshore wind.
As a result, 88% of companies advised that offshore wind is a priority for their businesses with 63% suggesting that the sector is more important that their traditional sectors such as oil & gas and nuclear.
Around 75% of the region’s companies are already active in the sector while the remainder would benefit from additional diversification support.
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The Supply Chain Mapping project also revealed that almost half (47%) of companies stand ready to be able to deliver on contracts valued at £1m and above, while exports accounts for 20% of the total turnover of two thirds of North East England supply chain companies.
To meet their financial and employment targets, the firms say greater support from the Government is required, particularly in the area of 海角视频 and local content.
James Ritchie, chair of Energi Coast, said: “The Supply Chain Mapping exercise really lays out the size and scale of the offshore wind sector in North East England and its vital role it can play in the 海角视频 economy.
“We estimate that there are around 400 companies operating in North East England’s offshore wind cluster and with the information provided by just over half of these businesses we are able to send a clear message to government and the decision makers in the offshore wind sector that our region is a go-to destination for a wide range of products and services.”
“However, the planned growth and level of new employment will only happen if the Government and developers commit to utilising 海角视频 and local content in projects in British waters. The region has a broad depth of skills, expertise and industry specific experience that is well placed to make a valuable contribution to the sector if companies are given the opportunities to be part of current and future projects.”
Joanne Leng, deputy chair of Energi Coast, added: “North East England has been active in the offshore wind sector since the early days of the industry. Since then, the region has become a key region for the offshore wind industry both in terms of developments such as the Dogger Bank Wind Farm and the RWE Sofia Offshore Wind Farm, and its diverse and expansive supply chain cluster.
“This has led to offshore wind becoming a priority for the region’s companies, especially in relation to the delivery of a post-Covid-19 green economic recovery, and this means ongoing support must be provided to the local supply chain to further develop their business in the sector and ensure diversification support is provided to new entrants coming into the market with transferable skills.”