Healthy international prospects for Aberdeen engineering consultants
Aberdeen-based engineering consultancy Prospect is taking advantage of Scottish Development International’s (SDI) popular incubation facilities to open its first Houston office this summer.
Prospect specialises in computational mechanics – setting up real-life engineering scenarios on computer to develop effective solutions – and the new Houston operation, incorporated as Prospect Flow Solutions Inc, will be headed up by current UK operations director Alistair Gill (pictured right).
“SDI has been an invaluable resource, and its experienced Houston team of Valerie Hellums and Carol Decker, have helped us hugely to plan a successful market entry strategy,” he says.
“Using SDI’s incubation facilities also allows us to enter this challenging market at reduced risk while we start the process of recruiting US personnel to join our new team.”
Different cultures
Prospect has doubled its turnover every year since 2003, and has already opened an operations base in Stavanger, but, notes managing director Jonathan D’Arcy, the company recognised that Houston would be a special case deserving of a different approach.
“Broadly speaking, we found Stavanger very compatible with Scotland – only a short flight away, similar in size to Aberdeen, and with lots of shared North Sea experience.
“But Houston, despite the apparent cultural synergy, is a completely different market. In reality, the cultural differences are vast, and one of the many advantages of moving into an incubator unit is that from day one you are working alongside other people who can help you work your way into the Texan way of doing things.”
Prospect plans to use the incubation facilities precisely for that purpose, and to work towards standing on its own two feet as soon as possible.
“I believe the key to making it work in Houston is to get the right people, including US graduates, and build a happy, enthusiastic team to demonstrate that you really are committed to moving forward beyond the incubation stage,” observes Jonathan.
“Even with the camaraderie of mingling with other SDI tenants – which is undoubtedly a huge boon initially – we think we need a well-integrated, core team of about four gregarious, enthusiastic people to attract the next phase of recruits and start the process of winning serious, long-term business.”
“When you are setting up in a new market, it’s very easy to feel a bit isolated, and to be trapped into feeling you’ve got to start paying your way as soon as possible. We know we’ve got to start earning our corn at an early stage, but there’s also got to be a balance – we’ve also got to get the team dynamics right from the start. Infusing the small team with a happy, enthusiastic culture is absolutely critical, we think, to breaking into the US market.”
Planning the approach
As one who has been with Prospect from the start, Jonathan has an interesting perspective on the rationale behind international expansion.
“Like many Aberdeen-based oil service companies, a significant proportion of our work is still North Sea-based,” he notes. “But the bulk of our clients are already multi-nationals, working the world, and there comes a stage when you can see they are surprised that you don’t have an operations base in Norway, the US, the Caspian or the other major hydrocarbon territories.”
“That’s not in itself, of course, a strong enough reason to plough on and open up overseas, but it can form a valuable base-load of work while you break into markets with new international clients.”
Aware that Houston required a considered, strategic approach, Prospect initially sent its directors on a number of SDI “learning journeys”, which proved invaluable sources of advice.
“I was most impressed at the openness of some of the people to whom SDI introduced us,” recalls Alistair. “These were UK oil people who’ve already done it in Houston, but they were honest enough to tell us about some of the mistakes they had made along the way, and to say ‘I’m never doing that again!’”
“In my opinion, one of the best things about the UK export support agencies is that they are very even-handed – they want to encourage you to break into new markets, but they also want to make absolutely sure that you are 100% aware of exactly what that actually entails.” adds Jonathan.
So, Prospect is on course to open in Houston this summer, subject to work permit. If all goes to plan, the company hopes to have outgrown the SDI incubator unit within six months – “there’s no question that the work is out there, it’s just that you need the people to do it, but with good training and a good work environment we believe we can get the people,” notes Jonathan.
Compared with the company’s founding in 1999, opening in Houston has been that much easier, recalls Jonathan.
“For our UK launch, we basically had to battle away in splendid isolation, and practical business support – which we really needed at the time - wasn’t always forthcoming,” he admits.
“But we have been majorly impressed by the UK export support agencies, and the way they go about selling Great Britain plc – introducing us to the right people, giving us access to cost-effective facilities, and allowing us to draw on their considerable experience in making our plans for market entry.”
For more information about Prospect, visit www.prospect-fs.co.uk
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