Wood looking to grow Granite City workforce

The new boss of Aberdeen’s biggest company is predicting a bright future for the company and its home city.

Ken Gilmartin says that Wood, a leading engineering and consultancy group, is designing the future for many important industries all around the planet.

And all this is happening from the Granite City base, where the local workforce deal with projects from clients in dozens of countries.

Ken, who became Chief Executive last summer, said: “We are modelling tomorrow’s world from right here in Aberdeen.”

The CEO also predicted that the Granite City workforce could conceivably grow from 4,500 to 6,500 in the years ahead if enough workers with the right skill sets were available.

He said there are multiple benefits of Wood being based in the Aberdeen.

The boss explained: “We have proximity to key clients, access to a highly-skilled talent pool and our heritage as a long-standing member of a vibrant business community.”

The firm has come a long way since Sir Ian Wood saw the huge opportunity presented by the birth of the UK offshore oil industry in the 1970s.

The inspirational entrepreneur transformed the family-owned fishing business into a multinational oil services company listed on the London Stock Exchange.

Wood now has an annual turnover of more than £4billion, and the order book for this year currently stands at nearly £5billion.

The worldwide workforce is now around 37,000, with more than 6,000 of them in the UK.

Over the decades, the group has continued to grow - and it may surprise many readers to discover that there is much more to Wood than just energy services.

Materials now makes up a third of the business, while energy services is responsible for the other twothirds.

Materials is a wide-ranging sector which takes in everything from designing facilities for pharmaceutical companies to delivering projects in the transportation and water sectors. But Ken was keen to highlight the continuing importance of the company’s North Sea operations, which have an offshore workforce of 1,100 - making up almost a quarter of the Aberdeen team. The CEO said: “Wood has a long heritage in Aberdeen. It’s where it all started, and it will continue to be a key hub moving forward.

“In 2022, we booked around £500million in contract awards in UK oil and gas upstream and midstream projects - the majority of which are in the North Sea, managed from our Aberdeen HQ.

“This part of our business was resilient through the pandemic and, with a growing backlog of work and pipeline of opportunities, we are focused on attracting and retaining skilled people.”

Asked if the North Sea windfall taxes on oil and gas producers had impacted Wood to date, Ken stated: “It has had little direct impact, but we are keeping a close eye on how it influences the capital investment decisions that our clients make on the UK Continental Shelf moving forward.

“Our heritage and track record in the UK remains - we had a 100% retention rate on all of our North Sea contracts in 2022, meaning it’s still a strong market for Wood.”

Cutting carbon emissions is a topic rarely out of the news headlines, and it is a subject very much in Ken’s mind.

He said: “Moving towards a lower-carbon and ultimately net zero future is an environmental imperative - and a tremendous business opportunity for Wood.

“It’s a growth driver in all our regions across the globe, including here in the UK.

“We’re working on multiple projects that support the journey towards net zero - these can range from technical solutions to reduce flaring on operational oil and gas assets, repurposing pipeline infrastructure to transport hydrogen, and processing minerals like copper and lithium that will be key to meeting rising demand for electric vehicles, battery storage and solar panels.

“From an energy transition perspective, we are particularly focused on the opportunities in hydrogen, carbon capture and wider decarbonisation solutions.

“The latter will include the use of renewables to help power operational assets - a good example of this includes our work with Equinor on Hywind Tampen where we are modifying offshore platforms so they can be powered by an offshore windfarm.”

The CEO said Wood’s teams in Aberdeen are currently working on world-class projects in more than 50 countries.

“That ability to make an impact globally and to export our expertise is inspiring - and provides brilliant opportunities for our people.”

Ken said one impact of the pandemic was the upturn in international work for Wood’s Aberdeen teams.

He explained: “Before CV19, you had to be based locally in many countries to land professional services work. But all that has changed now.

“This is also helping us on the recruitment front - the first question we are often asked at interviews is: ‘What projects will I be working on? The more complex the work, the more it seems to interest potential new employees.”

But Wood - like many other British businesses - is still feeling the impact of skill shortages.

The boss said the group currently has around 1,000 vacancies across its UK operations. It is actively recruiting for a range of professional and technical roles, both onshore and offshore. Recruitment initiatives include early-careers teams working with universities and colleges to attract graduates to Wood.

So, what does Ken see as the biggest opportunities for Wood in the UK and internationally going forward?

He said: “There are tremendous opportunities across many parts of our business.

“At the end of last year, we set out a new strategy and identified a potential addressable market opportunity of around $230billion over the next three years across our core end markets.

“In energy, we are prioritising opportunities in oil and gas, hydrogen and carbon capture. In materials, we will focus on the chemicals, minerals and lifesciences sectors.

“Across both markets, we see significant growth potential linked to the themes of decarbonisation and digitalisation.

“From a geographic perspective, we are optimistic about the opportunities in many parts of the world, but see highest growth potential in North America, the Middle East and the UK.”

Wood’s current expansion plans have a focus on organic growth, instead of acquisitions.

The CEO also shared some of his views on the economy in the Aberdeen area.

On the unsuccessful North-east bid for a green freeport, Ken said it was disappointing.

He added: “It was an attractive proposition and would have been an important building block. But Aberdeen is resilient and has come through much tougher moments.

“There are still plenty of other opportunities that the city can and should be excited about.”

The boss was keen to stress that Aberdeen continues to have a global reputation as a centre of excellence for the energy sector.

He said: “It has a great track record of innovation and entrepreneurship. That, more than government decisions (on taxation), is what will continue to make Aberdeen a thriving city moving forward. The future is in our own hands, and we should embrace it.

“We can and should be optimistic - the energy transition represents a significant opportunity for the local economy.

“With the right support, it could be a bright new dawn that delivers economic, social and environmental benefits to the region.

“The energy transition will create many other opportunities for Aberdeen.

“Aberdeen’s location, heritage and the expertise within the local economy means it can play a leading role across the energy value chain.

“Globally, the demand for energy is on an upward trajectory - so there will be exciting opportunities for the city across oil and gas, renewables and in fast-emerging areas like hydrogen, bio-based fuels and carbon capture.

“Many Aberdeen-based companies like Wood export talent, goods and services all over the world. We have an international economy and need to continue to capitalise on those opportunities.”

Ken Gilmartin might have been lost to the business world if his childhood dream had come true.

As a youngster growing up in Ireland, the Wood boss wanted to be a professional football player.

He said: “I played goalkeeper at a good level at college and also when I worked in Germany, but playing for Sligo Rovers remains an unfulfilled dream (for now).”

Ken joined Wood as Chief Operating Officer in August 2021 before his promotion to CEO last July.

He previously worked for nearly 15 years with American international technical professional services firm Jacobs, latterly as Executive Vice President based in Philadelphia.

The boss said he joined Wood because he could see the great potential in the company, knowing the value of the skills and expertise required to deliver complex and critical projects, operations, and consultancy solutions.

So, what is the best part about leading the Aberdeen group?

He replied: “The people - meeting our teams, hearing what drives them and learning more about the incredible work we are doing for our clients.”

And the worst part?

The CEO said: “I’m away from home a lot. I’ve travelled a lot throughout my career so as a family we are used to it, but it never makes it easier.

Ken said that he has always been hungry to learn and take on roles that challenged him.

“As I moved through my career, assuming executive leadership roles and ultimately becoming CEO, was a natural progression of this journey and that commitment to lifelong development.”

Ken now lives in Aberdeen, and he said: “It is a great city and there’s lots to enjoy in Aberdeenshire as well.

“I’ve managed to explore parts of the region over the last six months and a few things struck me.

“The proximity to the beach and the hills is a huge plus, there are plenty of fantastic golf courses, and the warm welcome from the local people reminds me of growing up in Ireland.

“In terms of the city centre, it’s encouraging to see the effort that’s going in to regenerating parts impacted by the pandemic.

“This is not a challenge that’s unique to Aberdeen, but the focus on reimagining the city centre in a way that reflects what local people want from the environment can be a real boost for the future of the city moving forward.”

Partnership with cancer charity

PwC Scotland has launched a partnership with Young Lives vs Cancer.

The professional services firm, which has offices in Glasgow, Edinburgh and Aberdeen, has entered into a two-year collaboration with the organisation North of the border, following a Scotland-wide staff vote to select a new charity to support.

Over the course of 2023 and 2024, PwC staff across Scotland will raise funds for the charity, as well as taking part in skills-based volunteering, offering relevant expertise to Young Lives vs Cancer and the families it supports.

The partnership represents one of Young Lives vs Cancer’s largest corporate partnerships in Scotland. The charity helps children and young people aged up to 25 years, and their families, with the things they need most while going through cancer - from financial support to help with living costs and hospital visits to advocacy, emotional and bereavement support.

Jason Morris, Regional Market Leader at PwC Scotland, said: “We’re thrilled to be partnering with Young Lives vs Cancer for the next two years and, given the charity was selected by a majority vote of our staff in Glasgow, Edinburgh and Aberdeen, we know everyone will put their full support behind the partnership.

“Linking up with Young Lives vs Cancer gives us a unique opportunity to make a real difference - going beyond simply raising funds - although that’s a massive priority. Our employees will also offer up their skills and expertise to the charity and the families it supports.”

CHAP back in black

Westhill based construction company CHAP Group, saw annual turnover increase by 21% to £45.7million during the financial year to September 30, 2022.

The firm also recorded pre-tax profits of £152,000 compared to losses of £705,000 previously.

CHAP Managing Director Hugh Craigie said: “We are delighted to see the Group return to profit after three challenging, CV19-affected, years. Year-on-year turnover growth is early evidence of our strategic plan beginning to pay dividends.”