By Julian Harburn, Michael Page Oil & Gas Regional Director in the UK
Are we about to see a significant reduction in contractor rates across the board in the UK Oil & Gas market? With 3 major service companies implementing an across the board rate cut for all onshore contractors and others expected to follow suit, contractors are for the first time in years experiencing pressure on their rates. Many of our clients feel that this is a long overdue correction as contractor rates have increased at a rate that has far outstripped staff salaries. With North Sea investment high on the political agenda Operators and service companies alike are trying to make their proposition as cost effective as possible and reducing manpower costs is always an obvious solution.
Other significant factors affecting contractors are that the majority of clients want to hire people into staff positions as they try and balance the headcount of their businesses back towards staff and at the same time reducing people costs. All of this points towards a reduction in contractor rates and a stronger demand for staff hires.
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