The petrochemical industry in Western Europe spends €2.9 billion per year on plant shutdowns according to a T.A. Cook study. 84% of experts interviewed expect skilled turnaround personnel to be increasingly employed across multiple sites in future. Following these structural changes turnaround service providers will be forced to extend their geographic area of operation to maintain their competitive position, according to 74% of respondents.
This change in plant organisation is driven by the need to provide core competencies on different sites, which are being eroded due to extended periods between turnarounds and continuous outsourcing. In order to improve their processes, plant operators prefer to commission international service providers. The local business model that is currently used by 7% of service providers will be extinct in five years. Similarly, the proportion of turnaround contractors offering services on a national scale will decline from 19% to 6% while international-scale service providers will increase from 22 to 37%. Service providers that do not follow this trend will struggle to be employed as general contractors.