Success stories EIC Survive & thrive III
in deepwater applications, a market that collapsed following the downturn. Pre-2015 PIH was present in every spool base across the world. Following the crisis it was committed to regaining that spot. Although this market shrunk by 80% since the downturn hit, PIH continued to invest in breakthrough materials, end-to-end partnerships and automation which will pay dividends in the coming years. Lastly, PIH embarked on a regional consolidation and diversification strategy. After 2014, the company streamlined its operations back to its UK Centre of Excellence and its Middle East operations, reducing its Malaysia operations and manpower levels in Houston. After its implementation, this strategy allowed PIH’s first ever contracts in Bulgaria, China, Kazakhstan and Kuwait (having met Kuwaiti customers at an EIC Connect event), all supported by the company’s
Story type #diversification, #export, #optimisation
Benefits • Successful business reorganisation, retaining number one position in field joint coating market • Customer base doubled since 2014 • New export markets generating 25% of current revenues • Successful diversification to noncore field services (25% of current revenues)
Key findings For industry • The market is fragile, so companies must be agile • Be ruthless and go early if you want to control your own destiny and be an inside-out business, rather than a market led business
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UK operations. New markets provided a boost to PIH’s revenues, generating 25% of current revenues. As to diversification, the company managed to increase the share of non-core field services to 25% of total revenues, while relying less on major contractors (which previously accounted for 100% of the company’s customer base). PIH not only retained its leading market share following the adoption of its multi-strategy plan, but the company also managed to diversify and focus on new countries, services and sectors. The company has stabilised its revenues while retaining its core workforce. Key metrics performed well in 2018: RFQs are on the rise, as well as contract awards. In total, PIH won 34 projects worth over US$25m in 2018. PIH knows well that market dynamics are inescapable, but the company’s prize-fighter mentality, battling for every dollar, has been key
For government • Additional funding support is necessary • Tax breaks and reforms are needed • Reduce corporation tax on export revenues
Government support? The company has joined DIT-led trade delegations. In addition, PIH has benefited from R&D tax credits as well as Apprenticeship Levy support.
Export lessons • • • • •
About PIH One of the world’s leading field joint coating subcontractors, PIH provides application equipment and material solutions that protect onshore and offshore pipelines from corrosion, heat loss and mechanical damage at field joints. Since 1980, the company has diversified from the original core business of providing induction heating services for welding to offering a full range of anti-corrosion, insulation and profile infill solutions for pipeline field joints. Headquartered in Burnley, PIH has offices in Australia, Oman and the UAE. Through CRC-Evans, PIH is also present in Brazil and the US.
Scaling-up lessons • Keep employee engagement as a core skill • Learn how to manage rapid growth • Go digital • Set targets • Build a talented team
PIH at a glance: Key products and services: anticorrosion services for pipelines Main industries served:
Look at the demographics Calculate the addressable market Understand customs processes Develop knowledge on local content Understand tax issues
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in overcoming the crisis and succeeding at home and abroad.
• Oil and gas – 100% (offshore – 60%, onshore – 40%) Headquarters: Burnley, UK Year established: 1980 Number of employees: 193 Revenue: US$50m Revenue from exports: 90%
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EIC EIC (Energy (Energy Industries Industries Council) Council)
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