Frequent delays to offshore energy and infrastructure projects are putting the UK’s underwater supply chain under pressure, according to the Global Underwater Hub (GUH) Business Survey 2025.
The survey found that 96% of respondents believe work in oil and gas, offshore wind and defence is progressing too slowly, while 81% said developments are not keeping pace with national needs. GUH’s report, titled Minding the Gap, warned that 82% of the sector feels supply chain capacity in the UK is not aligned with demand.
Neil Gordon, GUH chief executive officer, said the survey highlights the growing risk of losing domestic capacity to international markets. “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,” he said.
Gordon added that fast-moving international projects could attract UK 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,” he said.
The report said the UK underwater market grew from £9.2 billion in 2024 to £9.4 billion in 2025, largely driven by construction activity in global markets. GUH said exports now account for 43% of total revenue generated by UK underwater supply chain companies, but warned that the mobility of the sector presents risks if domestic projects remain delayed.
“Our research shows that companies increasingly view greater prospects internationally than domestically, with shorter timelines, supportive government policy and greater volume,” Gordon said. He added: “A sea-based supply chain is, by nature, highly mobile and, unless things improve in the UK, then it seems inevitable that companies will consider not just exporting to other regions but relocating there.”
Ahead of the Autumn Budget, GUH called for accelerated domestic project delivery, stronger policy support, investment in skills development and strategic diversification. Gordon said: “The UK has a supply chain with the capability and capacity to lead, but confidence in project timelines and policy support is eroding. Major industrial projects take years to mobilise, and we risk repeating past declines that cannot be reversed overnight. This is a pivotal moment. 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.”
