Reviewed: 20th December 2016
For a city so deeply dependant on the oil and gas industry, the recent downturn in this sector has been devastating to Aberdeen and the surrounding area. Due to the falling price of oil, an estimated 65,000 oil and gas jobs have been lost since 2014, with this number increasing on a daily basis. In fact it has been suggested that jobs are being lost at a rate of 150 per day, and experts predict that the North Sea’s oilfield service industry could be slashed by as much as a third as companies continue to close down. The current downturn in the price of oil has lasted longer and run deeper than any other slump the city has witnessed. Once one of the richest cities in the UK, Aberdeen now has one of the fastest rising unemployment rates in the country.
The decline in the sector has had huge knock-on effects which have reverberated around the city. It is not just those running and working on the rigs that are feeling the pinch; the financial pain has spread through the entire city. With less people working in the city, there is less money being spent on the products and services offered by other businesses there. Establishments throughout the whole of Aberdeen have felt the consequences with restaurateurs, cab drivers, shop owners and hoteliers all seeing their takings plunge as demand for their services in the area dries up.
One industry which has found this downturn particularly troubling is the serviced apartment trade. Many of the apartments which were once inhabited by workers needing accommodation close to their jobs on the rigs, are now standing empty as a result of many redundant workers having left the city to find work elsewhere in the country. With the rooms becoming harder and harder to fill and haemorrhaging money every day they remain empty, many are finding it increasingly difficult to remain in business.
Experts within Real Business Rescue’s Aberdeen office have been advising a number of people who have found their businesses negatively affected by the downturn and mass redundancies in the city. If you are struggling with debt due to the oil and gas industry’s downturn, call one of our experts to arrange a confidential meeting free-of-charge. With experts located in Aberdeen, we understand the current situation in the city and the problems you are up against. We have an extensive network of 72 offices offering confidential director support across the UK.
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