FEATURE
2023 GLOBAL SUBSEA INDUSTRY HEADWINDS AND OPPORTUNITIES BY SEAN BERGIN AND TOM SOJA
A
s we stare down the second half of 2023 and look towards 2024 and beyond, there is no better time to consider the implications of the fundamental changes that are happening within our industry and also the external factors that influence the shape of our sector. There is a lot to unpack and digest, but the shifting dynamics in the subsea space could broadly be dissected into the following components: technology, chokepoints/ routing, cost of construction, production and vessel availability, cost of capital/inflationary pressures and also tech layoffs. All of these elements are factors, or at least considerations, in building any business plan when developing a new subsea cable system. Let’s take a high-level look at each of these components, in no particular order, which shape the landscape of the industry and attempt to understand if any headwinds may actually be masquerading as opportunities.
TALENT
It’s the people that make our industry tick, so this is as good as any place to start. Currently, our industry is dominated by a more senior demographic. Just go to any subsea focussed conference and scan the crowd and you will note that the majority of the people in our sector are without doubt male
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and forty-years old plus, plus. Are we putting enough effort in to attract a broader (and younger) demographic to the industry? It’s important that we do focus on new talent particularly as our industry evolves, and evolution obviously requires fresh ideas. “What got us here will not get us there” comes to mind. It’s not like there aren’t enough displaced folks in the tech industry (of all genders, races, and ages) that would be able to fit right in with minimal upskilling. Consider significant layoffs1 in the tech space (congruent sectors to subsea) in 2023 alone – around 80,000 of them and this is just the last 4 months. Add to that further planned layoffs due to bite in May and June, and we are looking at a significant amount of available talent for our industry to draw from. Although it’s an unpleasant picture, it certainly does create an opportunity for the subsea industry to look at gaining some ‘fresh blood’ to help shape the future from an extremely diverse and talented pool of resources. Sure, they aren’t subsea experts, but who of us was when we joined the industry? Where is the opportunity here? Ironically, the submarine cable industry provides a large part of the physical components that comprise the virtual ecosystem that is the Internet and 1
https://techcrunch.com/2023/04/27/tech-industry-layoffs/