Engineering news
The oil and gas industry could create up to 39,000 new jobs across the UK in the next two years, research has suggested.
A survey of 100 companies, commissioned by the Bank of Scotland, revealed the number of positions expected to be created is 5,000 higher than expected last year.
The majority of companies expressed optimism about the sector, with more than 69% confident of growth over the next 24 months, although this is down from 77% last year.
Stuart White, Bank of Scotland commercial area director, said: "The findings of this report are excellent news for the economy, demonstrating the employment generating nature of the oil and gas industry now and in the future.”
"With most of the UK's oil and gas firms clustered in Aberdeen and the north-east, Scotland should reap the largest share of these new jobs, however other parts of the UK will benefit from expansion plans."
The report found that international expansion was cited as a priority for almost two thirds (64%) of firms, up 5% from the previous year. Key areas for investment were Africa, North America and the Middle East.
While the report predicts positive developments of job growth and international expansion in the sector, 87% of engineering firms are concerned about the availability of skilled workers, with 38% saying a shortage of skilled workers would be their greatest challenge.
White said the report "highlights the growing challenges posed by the lack of a skilled workforce", but added: "Positive action is under way to address this shortfall, with new partnerships between higher education institutions and industry as well as the creation of new specialist apprenticeship schemes.”
"The results also demonstrate the global nature of the industry as more firms look to expand internationally and tap into the markets with the largest levels of recoverable reserves," he explained.
"With 44% of income already generated internationally, this is not a new trend, and reflects the reach UK firms have as the industry benefits from the expertise gained in the challenging North Sea environment."