20 Mar Unfavorable oil prices provide unexpected opportunities
As the market reacts to the lower prices of oil and gas, “opportunity” may not be the first thought that comes to mind. At $100 a barrel, efficiency might have been an afterthought. At $50 a barrel, there’s an opportunity to re-examine the strategies that will reduce costs in the short term while boosting efficiency and value in the long term.
Maximize equipment performance
A good start would be to take an inventory of assets and a second look at equipment performance. During periods of abundant growth and profitability, companies make more investments in capital.
However, when the markets turn unfavorable, many companies are left with idled equipment and underutilized capital. Choosing to repair equipment, rather than in investing in new equipment, is one way to extend the life of capital investments. CLIMAX’s extensive line of portable machining and welding equipment gives customers flexibility when evaluating repair and maintenance needs.
Additionally, when market conditions make it more difficult to justify buying new equipment, renting may make more financial sense in the short term in order to weather the storm. Because CLIMAX rental depots are strategically located all over the world, it’s easy to consider rental equipment as part of your arsenal in the battle for a positive bottom line. These small changes in business behavior can make the difference between merely surviving and strongly thriving.
Invest in performance efficiency
Amplifying the value of assets should also be applied to human capital. When markets are favorable, meeting production deadlines and other short-term demands tend to take priority over making improvements in employee performance. As production slows and demand quiets, investing in training for employees is a great opportunity to improve efficiencies and prepare for the next cyclical upturn. CLIMAX offers portable machine tool training that enables customers to have their employees factory-trained to operate CLIMAX equipment more efficiently.
Production downtime is also an opportunity to requalify employees and get them up to date on the latest practices for how to use CLIMAX equipment most effectively. This include both refreshing skills and expanding knowledge. For example, machinists and welders can learn more about each others’ work, understanding what a good setup or a good finished product looks like. With improved versatility, efficiency is improved, and that can lead to keeping a versatile crew fully deployed rather than having to look to two or three different crews with more limited skill sets.
While training season should never stop, time isn’t always forgiving. Therefore, CLIMAX instructors conduct field training at customer locations. On-site training programs emphasize safety and personal protection protocols in small-group classes that provide a hands-on approach to training. Combined with rental machines, training represents a tremendous opportunity to add capabilities that will sustain short-term business viability and prepare for long-term success.