A survey has exposed growing fears of UK offshore energy supply chain relocating overseas due to project delays.

Frequent delays to offshore energy and infrastructure projects are threatening the viability of the UK supply chain, according to a new study from the trade and industry development body for the UK's underwater sectors.

Almost all respondents (96 per cent) to Global Underwater Hub’s (GUH) Business Survey 2025 said that work in the likes of oil and gas, offshore wind and defence is moving too slowly, while 81 per cent think developments aren’t progressing at the pace the country needs.

Minding the Gap warns that firms may look to relocate overseas, with 82 per cent of the sector feeling that UK supply chain capacity isn’t aligned with demand.

Neil Gordon, GUH CEO, said: “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.”

As fears grow to relocation, the study also revealed that the size of the UK underwater market has increased, from £9.2bn in 2024 to £9.4bn in 2025. This is largely attributed to an increase in construction of new projects in a number of markets, many of which are global and reflect increasing exports.

While this reflects the high regard in which the supply chain is held internationally - with exports accounting for 43 per cent of all revenue generated by UK underwater supply chain companies - it comes with an associated risk. Gordon added: “Our research shows that companies increasingly view greater prospects internationally than domestically, with shorter timelines, supportive government policy and greater volume.”

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