Most companies are being profitable…..

But….

The profits being made are by many people wearing multiple hats.

With the lack of a seasoned workforce, and new talent not entering the industry, we are all doing multiple jobs that normally 3-4 people would do.

Burnout is coming.

During our financial review process , we were congratulated on doing well. The problem is that the financial windfall came at the expense of the workforce that was already in place.

At this time , service companies have the muscle to increase prices, and if companies aren’t doing it, then they won’t last.

With a 30-40% increase in operating cost , this is being kicked back to customers and operators, these operators will kick it back to consumers.

Inflation of the most simple of things (Paint / Pipe Dope) compounded with others is fluctuating so quickly that we have had to require multiple price increases over the last year.

Just to stay ahead of inflation.

Rig count has leveled due to a lack of equipment and manpower.

Our profits are tied to getting all run days from point to point, long term leases, and cost of repairs to equipment.

Due to a lack of capital , we are doing long term payout manufacturing work.

The customer can pay us out over an annual term and give us a higher markup, to carry it on our books, or take the lesser and buy outright.

Coming out of Covid market and inflation cost , mean companies don’t have a lot of cash on hand.

So they are using what they have on operating costs.

It’s a crazy market. I’m very blessed to work with some financial professionals who are very good.

They empower us operational guys to keep moving the ball forward while they deal with regulatory and financial challenges.