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Is there any such thing as normal anymore? Well the kids are due back to school soon, most of us have probably had a summer holiday, our weather has been unpredictable, Brexit has come and gone, there are on-going worries about the growth in China, the new conservative leadership has raised grave concerns about Hinkley, oil price has steadied………
Wait a minute, the oil price has steadied!
Of course I won’t go into each of these points but I would like to explore the ramifications of a steadying oil price.
There are more commentators now reporting that the oil price appears to have steadied and signs are that there will be a sustained steady increase in price over the coming months. Most people can never see the price returning to past levels but, given the decrease in capacity and reduction in costs, an increase to around $80 dollars a barrel should be sufficient to see the return of the oil & gas and associated markets.
If we look at the rig count, we are now at around 50% of where we were a number of years ago, due to a lot of closures and excess inventories to plough through. However, as a lot of companies have seen 70% drops from peak to trough in these markets, there is optimism that orders are starting to flow and that we could now start to see a 100% increase in current levels over the coming 18 months, with significant impact on related markets.
Now, I’m not advocating a rush to go out and invest in machinery and wait for the orders to flood in! I would like to think that, with joined up supply chains, the risks of investment can be shared along with the rewards. However, to get the best out of supply chains, communication is key.
Perfect Bore Manufacturing has remained true to its core values and continues to be a dedicated sub-contract supplier of Deep Hole Boring, Gun Drilling, CNC Turning, Honing and Superfinishing.
To complement its bore producing services, it has now added a Sub-Contract CNC Cylindrical Grinding Division to the largest sub-contract supplier in the UK.
Rest assured we treat your products as our own when in our custody!
So if you have any requirements for bore services, please do contact us and see what we can do for you, and potentially your supply chain. Visitors to our premises are especially welcome or alternatively my team and I are happy to come and see you to discuss our capabilities in more detail.
If you have anything urgent you would like us to look at then please feel free to contact me direct.