One of the many challenges facing businesses today is disruption. Disruption comes in many forms. One that has hit the oil and gas sector is the current economic downturn. Granted, things have stabilized slightly, but the industry is still feeling its effects.
At the recent Marcellus Shale Coalition June meeting, several members of the supply chain committee expressed their thoughts about their challenges. One point was their inability to find workers. They noted that, at best, only 60% of employees laid-off are interested in returning to the industry. This low return risk is common for drillers, completion services, water haulers, etc. Downturn or not, individuals need to find jobs and will move on.
Compounding this issue is that subcontractors are also struggling finding workers. Members of the supply chain committee also expressed concerns about workers’ training, in particular, safety training. Additional concerns regarding background and security were raised by committee members.
These factors present challenges, however, the laws of supply and demand will come together and provide solutions. With enough incentive, workers, both inexperienced and experienced, will come back to the industry, but at a cost.
You’ve heard our thoughts… We’d like to hear yours
The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].
Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.