Decades of offshore wind and nuclear development and operations ahead promises to futureproof an expanding marine engineering business in the heart of a near-£30 million port investment.
SMS Lowestoft, part of The SMS Group, which has a prime footprint close to where Associated British Port (ABP) Lowestoft is creating infrastructure for the offshore wind industry, has invested in strategic forecasting, capability and experience to shape the right team, in the right place, to swell its business exponentially for the next 30 years-plus, to the benefit of future generations and the newly-thriving port.
Proud of its core business of ship repair, it is eyeing the increasing tonnage through Lowestoft port from offshore wind and Sizewell C as catalysts to a flourishing future.
The company’s Avonmouth operation, one of eight nationwide locations, has given it a bird’s eye view of the ‘nuclear effect’ on Bristol’s ports of Hinkley Point’s recent construction, which quadrupled marine traffic in six years.
Nick Warren, SMS Group’s commercial and communications director, predicts Lowestoft’s benefit could be greater, with 10 to 12 times today’s marine traffic, opening new and exciting doors for SMS.
“What is amazing about Lowestoft is the growth of renewables in the next five years for construction and installation, and then the next 10 years from a wind farm maintenance perspective, and then there will be Sizewell C, which stretches ahead for decades,” said Nick.
“If we get the right team, we will be futureproofing our business. Companies with capability will prosper here in Lowestoft.
“SMS Lowestoft is about eat, sleep and repeat ship repair work. The short-term plan is ship repair and renewables, and the longer-term plan is ship repair, renewables and nuclear at Sizewell C.”
SMS Avonmouth has doubled its sales because of Hinkley Point traffic.
“When you go to Hinkley Point, the nuclear build programme is all encompassing,” said Nick. “It will be the same at Sizewell. There will be millions of pounds spent on everything from hotel rooms to engineering services, the whole local supply chain will benefit. If all we do is support tonnage from a repair and maintenance perspective, our Lowestoft business will likely double.
“With aggregates going through Ipswich for Sizewell C and the marine traffic route through Lowestoft, SMS is perfectly placed. We will hopefully be working with a plethora of Tier 1 suppliers that will be involved in the building of Sizewell.
“Lowestoft has gone from a place where we repair ships to a place where we can work in the renewables sector and nuclear - such positive changes.”
The base, which has been part of the SMS Group for five years but has a 30-year history at Lowestoft, is already recruiting to add about 12 new people to its 30-strong workforce.
“About 12 months ago, renewables probably accounted for a sixth to a seventh of our revenue. In 12 months’ time, it is likely to be a third of our revenue,” said Nick. “Now you are seeing increased tonnage from CTVs (crew transfer vessels), and small vessels and the bigger ships involved in offshore wind installation. It will be everything from pilot boats, stevedoring on the cargo vessels. It will run on and on.”
Today’s optimism is very different to a decade ago at the Commercial Road base.
“If we were to rewind 10 years, Lowestoft was dependent on oil and gas centric ship repair and maintenance. The oil and gas industry was in decline. The business was struggling. As oil and gas revenues fell and there was a hiatus and the business was focused on a single operator, Boston Putford.”
Today, key clients are UK Border Force, Trinity House, commercial customers, and work from customers based on the Thames, as well as Boston Putford and local CTV / WFSV operators.
“When we look at our revenue streams, there is not a lot of margin, so you have to pick and choose where you invest by finding a few sweet spots.
“We are a ship repairer. We will stick to what we know - repair and maintenance with turnkey capabilities.”
General manager David Gooderham runs SMS Lowestoft with East Coast regional manager James Grala-Wojrezyk.
David has worked in mechanical engineering in Lowestoft for more than 35 years, starting in the marine industry as a fitters’ mate at Small & Co in 2005, after 19 years as a motorcycle and car mechanic. Working his way up at Small & Co and Burgess Marine, he became the general manager of SMS in 2020.
With a Fit 4 Offshore Renewables accreditation under its belt, and membership of the Sizewell C Consortium, SMS Lowestoft has developed systems for maximum cost effectiveness and efficiencies.
One is a double docking solution for offshore wind farm crew transfer vessels in its 75m dry dock.
“Operators can share the cost of the docking and the team carrying out the work. The two vessels can be from the same operator or different operators, who share the cost,” Nick said.
Increasingly, operators are willing to share cost and work together.
“It improves their economies of scale and maximising opportunities. For operators, it is all about time on station for CTVs and we could support vessels from a structural, electrical and mechanical perspective.
“Vessels are becoming larger and existing facilities and infrastructure isn’t ideal for some of the new tonnage. We have had some great success with double docking. Now CTVs and wind farm support vessels are the size where you can get two in the dock. “
ABP’s 10-year plan to create a renewables hub in Lowestoft will see demand increase exponentially, Nick said.
“We know that the light ship tonnage will be complemented by larger ships. We have extensive knowledge of their repair and maintenance programmes.”
SMS Lowestoft - with its fabrication hall and mechanical workshop, 75m dry dock and 100m of quayside - recently secured a contract for maintenance of pontoons for SSE’s Greater Gabbard Offshore Wind Farm, off Lowestoft.
“Increasing our work will impact on the local community too. We will be increasing our local work force and we will be buying more from local suppliers.
“Then, there are the intangible benefits. We will be paying twice as many people’s wages, and they will be spending that locally too - it’s good for the economy.”
To prepare for Sizewell, the team has experience at Dungeness and Hinkley Point, adapting welding on ships and within the marine environment to within nuclear power stations.
Currently recruiting welders, fabricators, mechanics, engineers - people with core skills for renewables and nuclear - finding skilled people is a challenge.
“It is a nationwide challenge for the marine industry. The industry hasn’t realised how big a shortfall it has and the desperate need to recruit skilled people who will stay.”
Managing director Chris Norman said the group had quadrupled its apprenticeship intake, with two more starting at Lowestoft in September.
“The only way to address that is to train our own staff, but it is still a challenge to recruit and retain apprentices, and it takes four to six years to get back the investment in their training,” he said.
SMS has also supported offshore wind farms out of Ramsgate with its structural, electrical and dive teams.
“Lowestoft is a really interesting site and a great footprint to have because it deals with 100 customers from renewable operators, CTVs, Trinity House, UK Border Force. In Plymouth or Govern, we deal with one big customer like BAE Systems or Babcock.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here