Navigating the unpredictable waters of the global oil and gas industry can be a major challenge for the unwary company.
For Livingston-based WFS Technologies, the passage into this key target market has been eased by high-level input from two GlobalScots with unrivalled experience of the sector.
The firm, which employs 25 people at its Livingston base, specialises in the delivery of underwater wireless instrumentation which has particular applications for offshore oil and gas and renewables industries.
WFS’ sales and marketing director Ian Crowther believes input from GlobalScots Derek Blackwood and Ian Wilkinson has fuelled growth in their key US and Brazilian markets.
“I was introduced to Derek by another member of the GlobalScot team in 2010 having just relocated to Houston to set up our Gulf of Mexico operations.
“While none of our management team have a background in the oil industry, it’s our number one market, so having someone like Derek who understands the sector, had worked in Aberdeen and Houston and really knows the culture of the industry and the way decisions get made has been really useful.
“He’s helped us get the priorities of our business right and align those with the industry’s priorities. The help he’s provided ranges from broad discussions about cultural differences – something Derek is very strong on - to tactical advice on specific negotiations on a contract.”
The former President Americas at Wood Group PSN, Derek’s ongoing support for WFS eventually saw him accept an invitation to join the firm’s board as a non-executive director.
“His level of input and support as a GlobalScot was already very high - whether that was introducing us to people he knew in Houston, contacts within Wood Group or generally offering advice on how business is done in the US.
“Derek’s contribution to board level discussions has also been invaluable - his input on the current state of the industry, what its priorities are and where the value is best realised, is exceptionally useful to a small company like ours.”
As Ian confirms, for technology companies targeting the oil industry, there is generally a need for a strategy based on patience and persistence.
“The industry adopts technology very slowly and there is a sense of there being a race to be second. That reluctance to be first to try something new highlights how important it is when you do get your first customer in a particular application or region to make sure you maximise the opportunity.
“Having worked hard to win the first customer, it’s important to then get a reference from that customer because that counts for a great deal in the sector.
“Derek clearly sees the value in our business but his fundamental motivation is he wants to see Scottish companies do well.”
As one of the founder members of the GlobalScot network, Derek has assisted around 70 companies over the years.
He said: “There’s a lot of satisfaction in being able to take some of the knowledge, experience and understanding of different cultures I was lucky enough to receive as part of a bigger organisation, and be able to pass some of that on to Scottish companies to help them accelerate through their own learning curve.
“My involvement with WFS began after I arrived in Houston in 1999. My motivation was to see if I could do something to help companies understand what’s different about doing business in Houston compared to Aberdeen or elsewhere in Scotland for that matter.
“For WFS, their particular challenge is they have leading edge technology but every client wants to be the second one to use their product.
“Oil companies are very good once technology is proven, the big hurdle is proving it. I work closely with Ian and his team on a strategic level to look at which markets they should target and, particularly in the current climate, how to take advantage of the opportunities which the downturn in the sector might bring.”
There are clear cultural differences between how the oil industry does business in Aberdeen and how it operates in Houston but when it comes to the Brazilian market, these are of a different magnitude again. That’s why advice from a second GlobalScot - Ian Wilkinson, Socio-Director of Petrolink, Brazil - has proved so useful for WFS.
Ian continued:
“Of all the markets we operate in, Brazil – where Petrobras is the key player - is the one where we benefit most from having someone like Ian Wilkinson who really knows their way around. If you have someone like Ian who knows the area then you can fast-track into the right places.
“He really is our eyes and ears in what is a very important marketplace. He helps us understand the dynamics of how business is done there and what people are thinking. He has sat in meetings with me with Petrobras, helped establish a rapport and put the client at ease. Knowing we have someone we can call on in Brazil - even if we don’t have a physical presence there – helps create trust which is obviously really important.
“We get a lot of enquiries from Brazil which can be challenging for us to respond to because of language first and foremost. We also need to understand the decision-making process and how organisations work - Ian can make calls on our behalf and cut through that which has been really helpful.
“This year we’ll supply our first systems to Brazil which will be a major breakthrough for us in Latin America. It’s great to know we’ve got someone there who’s a friend of the business and we can call on if we need help.”
Longer term, Ian sees opportunities to grow further in Latin America.
“We’re looking at a number of different markets. We’re still a small business so we have to be careful about spreading ourselves too thinly in terms of where we put resource – that’s why having a GlobalScot in the region who has our best interests at heart is so useful."
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