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FeedsHome: Issue 1 2010 › Cover Story › A warm forecast
A warm forecast
31/01/2010 | Channel: IT, Technology, Equipment, Health & Safety, Exploration & Production, Drilling, Lifting Gear, Subsea, Support Services, Manufacturing, Hire & Rental, Human Resources
Matthew Halle of NES Group looks at the 2010 market prospects following a recession-hit 2009
It is understandable that many industries will happily wave goodbye to a recession-dominated 2009 and look forward to a happier, brighter 2010. With redundancies, hiring freezes and unemployment dominating the headlines, it’s also fair to say that many will view oil and gas as untouchable – no recession; no downturn; no global economic crisis can touch the oil and gas industry, can it?
However, people who do work in oil and gas know that the recession hasn’t bypassed the industry, hasn’t tiptoed by unnoticed, and most certainly has had an impact over the past year
A look back at 2009
It was evident as early as January ’09 that cost-cutting would be the theme of the year; with a major decrease in the volume of design work and therefore fewer related roles – conceptual / FEED engineering, etc. – coming up throughout the course of the year.
A need for operators to reduce both CAPEX and OPEX expenditure also prompted a preference for cheap labour and saw design work outsourced to countries such as India to save on labour costs; essentially meaning fewer European design opportunities.
Instead, operators chose to focus their financial investments on exploration work, developing new fields rather than existing ones, so geo-physics and geo-science roles remained in high demand.
Projects already underway continued as planned (no sign of the type of mid-way project suspension that was seen across the construction industry, for example) and a combination of cost-cutting and country-specific legislative measures led to more local candidate requirements, particularly from former Soviet Union states, Eastern European countries and Kazakhstan.
NES’s presence – via physical offices or through affiliations with country-specific recruitment partners – meant that this increased preference for local personnel was easily managed and had little impact on the ability of the company to supply labour wherever demand dictated.
Another trend observed during 2009 was a preference for permanent workers. This shift can be largely attributed to managements’ desire for greater control over restricted budgets, which no longer allowed for the flexibility of a contract workforce – permanent workers not only equate to a reduced overall cost of labour; they also allow a more accurate estimation of required labour spend.
The result? Contractors that were once used to commanding high rates and now reluctant to consider permanent roles needed to either sharpen up their negotiation skills or step aside for similarly skilled and experienced, cheaper workers. While many contractors have been happy to wait until the market improves, the current climate has led formerly hardened contractors to consider permanent roles they wouldn’t previously have taken.
With projects evading cancellation and profits maintained through a range of new cost-cutting measures, it is easy to see why the oil and gas industry has been accused of immunity from the global recession. Profits grab the headlines and the world could be forgiven for thinking that the industry has had it easy – simply not the case. Vigilance has been crucial over the past year; each vacancy has been justified and justified again before being advertised. Like many other industries, there’s hope for a more positive 2010 as countries exit the recession.
The outlook for the year ahead
There’s certainly a feeling of optimism within the industry regarding the outlook for 2010. More projects will be sanctioned and the harsh effects of cost-cutting measures that have been implemented will gradually lessen as projects gather pace and hiring requirements increase.
The subsea industry – which, as an incredibly specialised sector, demands more specialised and knowledgeable recruitment partners to satisfy hiring requirements – generated higher levels of demand for NES last year than it did during 2008; an indication that some areas have remained buoyant during the past year despite the economic climate. Unsurprisingly, the subsea industry is expected to generate continued demand for recruitment services throughout 2010, as steps are taken to address the well-publicised skills shortage that it is suffering from.
The preference for local personnel is also expected to continue throughout 2010 and beyond, as cost-saving and legislative enforcements continue to influence the market. Utilising the services of a recruitment company that understands the country-specific requirements of the oil and gas industry is crucial for companies looking to outsource their recruitment efforts across the globe. An agency that is both a specialist in its field as well as familiar with the law in different countries is advantageous.
Another trend set to continue throughout 2010 is the preference for a permanent workforce. Consideration of permanent roles would be especially advisable for recent graduates, whose experience following graduation may have been that of a buoyant contract market full of opportunity and enticing high rates that are no longer available.
Those with less than five years’ post-graduate experience, whose lack of training and development since qualifying may have lessened the attractiveness of their CV, should consider the benefits of permanent work during 2010. Be open-minded about the possibilities and accept that you might no longer be in a position to call the shots when it comes to rates – or even finding a contract role at all. Opportunities for professional development and career enhancement for permanent workers can contribute significantly to how you’re viewed by hiring managers, recruitment consultants and other influential professionals.
Advice for jobseekers
Advice to engineers seeking work within oil and gas remains largely the same as it has always been – ensure that CVs are up to date, that any significant gaps are explained (gaps are common within many contractor CVs due to the nature of the work, but they should still be addressed where possible) and to ensure that CVs are tailored towards each vacancy, drawing particular attention to skills and experience that matches that specified within the job specification.
An unfortunate impact of the recession, mirroring that reported within many other industries, is that technical and engineering personnel seeking new roles are playing down experience and skill sets in order to apply for roles they’re over-qualified for.
The advice for those tempted to do so is, simply – don’t. For recruitment consultants or hiring managers receiving your CV, this smacks of desperation. You’re unlikely to be considered for a role that you’re clearly over-qualified for, as it’s obvious that you’re going to jump ship at the earliest opportunity. It also means that, unless you’re going to embellish the truth next time you update your CV, you’re going to have some explaining to do about why you took a step backwards instead of finding something more suited to your level of expertise.
Conversely, and this is especially pertinent to recent graduates, don’t be temped to over-inflate your skills and experience in order to secure a role that’s too senior for what you can actually do. You’re sure to be found out, either during the CV vetting or interview stage, so save the time and energy and create a CV that most accurately represents your capabilities.
Both of the above job seeker pitfalls can be steered clear of by avoiding the scattergun approach to job seeking. Don’t apply for anything and everything that comes up, it’s a waste of your time and energy and unlikely to get you far. Implement a well thought out job search, where you identify suitable roles and invest all of your energy into applying for those. Better still – give a specialist recruiter a detailed description of your qualifications and requirements and let them share the hard work.
A final point for job seekers is to maintain contact with your professional or business network throughout your career. It’s at times like these – especially within the engineering industry, which is dependent upon shared knowledge - that keeping in touch with influential people can make or break your career.
If you’re working with a recruitment agency, come to a mutual agreement upon frequency of contact – and stick to it. Establishing a good relationship with your recruitment consultant can mean the difference between receiving a phone call when a role comes up and missing out because someone else came to mind before you.
By keeping people up to date with what you have been doing to find work and having regular, realistic discussions about what you would like and what you have to offer, you’re going to be positioning yourself favourably for suitable opportunities.
NES Group
The NES Group is a global technical, engineering, rail and IT engineering services and recruitment specialist that has been operational since 1978. With a network of offices spanning the globe the company offers a fully comprehensive range of services that can be integrated to suit clients’ requirements.
For further information please visit: www.nesgroup.com
However, people who do work in oil and gas know that the recession hasn’t bypassed the industry, hasn’t tiptoed by unnoticed, and most certainly has had an impact over the past year
A look back at 2009
It was evident as early as January ’09 that cost-cutting would be the theme of the year; with a major decrease in the volume of design work and therefore fewer related roles – conceptual / FEED engineering, etc. – coming up throughout the course of the year.
A need for operators to reduce both CAPEX and OPEX expenditure also prompted a preference for cheap labour and saw design work outsourced to countries such as India to save on labour costs; essentially meaning fewer European design opportunities.
Instead, operators chose to focus their financial investments on exploration work, developing new fields rather than existing ones, so geo-physics and geo-science roles remained in high demand.
Projects already underway continued as planned (no sign of the type of mid-way project suspension that was seen across the construction industry, for example) and a combination of cost-cutting and country-specific legislative measures led to more local candidate requirements, particularly from former Soviet Union states, Eastern European countries and Kazakhstan.
NES’s presence – via physical offices or through affiliations with country-specific recruitment partners – meant that this increased preference for local personnel was easily managed and had little impact on the ability of the company to supply labour wherever demand dictated.
Another trend observed during 2009 was a preference for permanent workers. This shift can be largely attributed to managements’ desire for greater control over restricted budgets, which no longer allowed for the flexibility of a contract workforce – permanent workers not only equate to a reduced overall cost of labour; they also allow a more accurate estimation of required labour spend.
The result? Contractors that were once used to commanding high rates and now reluctant to consider permanent roles needed to either sharpen up their negotiation skills or step aside for similarly skilled and experienced, cheaper workers. While many contractors have been happy to wait until the market improves, the current climate has led formerly hardened contractors to consider permanent roles they wouldn’t previously have taken.
With projects evading cancellation and profits maintained through a range of new cost-cutting measures, it is easy to see why the oil and gas industry has been accused of immunity from the global recession. Profits grab the headlines and the world could be forgiven for thinking that the industry has had it easy – simply not the case. Vigilance has been crucial over the past year; each vacancy has been justified and justified again before being advertised. Like many other industries, there’s hope for a more positive 2010 as countries exit the recession.
The outlook for the year ahead
There’s certainly a feeling of optimism within the industry regarding the outlook for 2010. More projects will be sanctioned and the harsh effects of cost-cutting measures that have been implemented will gradually lessen as projects gather pace and hiring requirements increase.
The subsea industry – which, as an incredibly specialised sector, demands more specialised and knowledgeable recruitment partners to satisfy hiring requirements – generated higher levels of demand for NES last year than it did during 2008; an indication that some areas have remained buoyant during the past year despite the economic climate. Unsurprisingly, the subsea industry is expected to generate continued demand for recruitment services throughout 2010, as steps are taken to address the well-publicised skills shortage that it is suffering from.
The preference for local personnel is also expected to continue throughout 2010 and beyond, as cost-saving and legislative enforcements continue to influence the market. Utilising the services of a recruitment company that understands the country-specific requirements of the oil and gas industry is crucial for companies looking to outsource their recruitment efforts across the globe. An agency that is both a specialist in its field as well as familiar with the law in different countries is advantageous.
Another trend set to continue throughout 2010 is the preference for a permanent workforce. Consideration of permanent roles would be especially advisable for recent graduates, whose experience following graduation may have been that of a buoyant contract market full of opportunity and enticing high rates that are no longer available.
Those with less than five years’ post-graduate experience, whose lack of training and development since qualifying may have lessened the attractiveness of their CV, should consider the benefits of permanent work during 2010. Be open-minded about the possibilities and accept that you might no longer be in a position to call the shots when it comes to rates – or even finding a contract role at all. Opportunities for professional development and career enhancement for permanent workers can contribute significantly to how you’re viewed by hiring managers, recruitment consultants and other influential professionals.
Advice for jobseekers
Advice to engineers seeking work within oil and gas remains largely the same as it has always been – ensure that CVs are up to date, that any significant gaps are explained (gaps are common within many contractor CVs due to the nature of the work, but they should still be addressed where possible) and to ensure that CVs are tailored towards each vacancy, drawing particular attention to skills and experience that matches that specified within the job specification.
An unfortunate impact of the recession, mirroring that reported within many other industries, is that technical and engineering personnel seeking new roles are playing down experience and skill sets in order to apply for roles they’re over-qualified for.
The advice for those tempted to do so is, simply – don’t. For recruitment consultants or hiring managers receiving your CV, this smacks of desperation. You’re unlikely to be considered for a role that you’re clearly over-qualified for, as it’s obvious that you’re going to jump ship at the earliest opportunity. It also means that, unless you’re going to embellish the truth next time you update your CV, you’re going to have some explaining to do about why you took a step backwards instead of finding something more suited to your level of expertise.
Conversely, and this is especially pertinent to recent graduates, don’t be temped to over-inflate your skills and experience in order to secure a role that’s too senior for what you can actually do. You’re sure to be found out, either during the CV vetting or interview stage, so save the time and energy and create a CV that most accurately represents your capabilities.
Both of the above job seeker pitfalls can be steered clear of by avoiding the scattergun approach to job seeking. Don’t apply for anything and everything that comes up, it’s a waste of your time and energy and unlikely to get you far. Implement a well thought out job search, where you identify suitable roles and invest all of your energy into applying for those. Better still – give a specialist recruiter a detailed description of your qualifications and requirements and let them share the hard work.
A final point for job seekers is to maintain contact with your professional or business network throughout your career. It’s at times like these – especially within the engineering industry, which is dependent upon shared knowledge - that keeping in touch with influential people can make or break your career.
If you’re working with a recruitment agency, come to a mutual agreement upon frequency of contact – and stick to it. Establishing a good relationship with your recruitment consultant can mean the difference between receiving a phone call when a role comes up and missing out because someone else came to mind before you.
By keeping people up to date with what you have been doing to find work and having regular, realistic discussions about what you would like and what you have to offer, you’re going to be positioning yourself favourably for suitable opportunities.
NES Group
The NES Group is a global technical, engineering, rail and IT engineering services and recruitment specialist that has been operational since 1978. With a network of offices spanning the globe the company offers a fully comprehensive range of services that can be integrated to suit clients’ requirements.
For further information please visit: www.nesgroup.com
