Sales in the subsea industry in the UK North Sea have dropped due to oil prices but it is maintaining investment in technology.
The sector also expects to increase exports, according to Subsea UK.
It stated 90% of 60 firms surveyed have seen sales decrease in the last 18 months, out of which 28% saw sales fall by 40%. A further 28% have lost half their revenues with sales reduced by 50%.
On the other hand, almost 6% reported no impact on sales and nearly 4% have seen an increase in revenues.
Around 80% of the companies believe financial institutions have lost faith in the sector however 7.7% are actively seeking new investment.
Nearly 70% of those surveyed were not actively recruiting and 28% were hiring less people than they were in 2015.
Neil Gordon, Subsea UK Chief Executive said: “The decline in oil price and subsequent industry-wide downturn has seen a massive reduction in CAPEX and OPEX budgets worldwide which have impacted the subsea sector where we are seeing job losses and the collapse of companies, putting the UK sector’s enviable world-leading position under threat.
“The findings from our survey underline the negative impact on revenues and recruitment but they also reveal positive signs of the sector adjusting and adapting to the lower for longer oil price environment which will ensure we are well-placed for the future.”
According to Oil & Gas UK, the number of jobs lost due to the downturn in the oil and gas industry in the UK could reach 120,000 by the end of 2016.