Across the offshore industry, two approaches to financing and project spend are apparent: life cycle value versus short term costs. This is according to Trelleborg’s offshore operation’s roundtable members, who analyzed findings from the company’s Next Level Report at Offshore Europe in September.

Panelists agreed that although it is tempting for organizations to look for larger upfront savings - especially whilst budgets are under scrutiny due to lower oil prices - in fact, sustainable marginal gains can reap greater rewards long term and should be favored. One panelist’s example was a multibillion dollar project in which an operator may be averse to introducing innovative solutions as they only appear to save $10m. While this may seem a small saving in the overall project spend, cumulative savings of this amount could hugely benefit the project’s overall costs.

That said, the reduced oil price appears to be creating an incentive for businesses to communicate more openly through supply chains to establish smarter ways of doing business. As such, panelists stated that now is the time for supply chains to collaborate, invest and embrace innovation. Otherwise, decisions makers could make short term cost savings on long term issues, which could reoccur if not properly addressed.

Overwhelmingly, the key message from the roundtable was one of change. Members stressed that against a backdrop of challenges, the industry should remain optimistic and proactive. An openness to innovation and clear communication between stakeholders is paramount to ensuring a leaner, quicker and more exciting market in the future.

Trelleborg surveyed decision makers to identify ways in which the industry can respond to pressure against a backdrop of slowed market growth. Responses were analyzed for its Next Level Report, and formed the basis of the roundtable discussion.

You can watch Trelleborg’s roundtable here.