In the looming wake of a no deal Brexit, energy supply chain companies are still finding exporting to new markets to be their hardest growth strategy according to a report released today by the Energy Industries Council (EIC).
For the third year running EIC member companies surveyed in the report are shying away from investing in new export markets as their growth strategy, with business leaders still perceiving it as the riskiest strategy with the slowest return to profit, preferring to adopt alternative growth strategies such as innovation, digital and diversification.
In 2019 only 12% of companies interviewed exported their way out of a crisis compared to 19% in 2018.
The EIC’s ‘Survive and Thrive 2019 Insights Report’ provides a listing of companies and detailed analysis of eight strategies they have employed to grow against a backdrop of a cautious oil and gas market recovery, growing focus on decarbonisation, and Brexit uncertainty.
EIC CEO Stuart Broadley said: ‘Our research shows Brexit is a having more of an impact now. Sometimes positive, companies who are net exporters are really seeing growth benefitting from the weak sterling. On the negative side more companies are getting frustrated by the lack of inaction around Brexit, damaging their growth prospects in new export markets and Europe in particular. There is a real possibility UK suppliers may need to look for new markets soon.’
Read the article online at: https://www.hydrocarbonengineering.com/refining/08082019/energy-companies-reluctant-to-export/