$50 Oil / Economic Slow Down - Experiences?

[GINCH]

Re: $50 Oil / Economic Slow Down - Experiences?

Gotta say business here at the dealership is also still going well. This March was the best March we have had in at least 10 years. April's also starting off to be pretty decent!

[miketweedie]

Re: $50 Oil / Economic Slow Down - Experiences?

I sell specialty SAGD completions equipment (also known as widgets) to major oil and gas companies, and to say we have seen a slowdown would be a monumental understatement. Capital spending across the board has been decimated, and most of our projects are looking at a delay of minimum 18 months. Needless to say, the parking lot at work has a lot of vacant spaces.

With all that doom and gloom, we have seen some pretty amazing opportunities come across the desk. Companies are focusing hard on factors like efficiency, environmental impact, and reusability of product. This is opening all kinds of door for smaller companies to pitch new products, and is pushing the sales of some extremely expensive parts. Even in this time of industry economic downfall, we have seen sales figures we only dreamed about two years ago. We are just focusing on different products.

For anyone that has lost their job, or anyone like Mitch who is a new grad looking for work, my advice would be to thin outside the box. Find a way to apply your skills to an underutilized or new technology, and go for it. It is a significant risk to get involved with a smaller company, but the payoff can be totally worth it. I sell hard parts (metal clamps and whatnot) and lately we have been selling a proprietary chemical instead, because there is a need for it. It cost us a bunch of money to test it, and get approvals, but we are now the only domestic supplier and as such we can keep the lights on without letting anyone go.

Just my thoughts. Really sucks to see people losing their jobs.

[Wildfire]

Re: $50 Oil / Economic Slow Down - Experiences?

Good thread.
I used to work for one of the major banks as a investment advisor and I left last December. Before I left it was known internally around that next year (2015) would be a slowdown/flat with little or no growth).
A rival bank (Scotia) cut off a non profitable arm in the Caribbean. This was interpreted as a negative and sent shares down and created a bad public image in Canada.
The bank I worked for did not cut jobs as this would hit stock price and create a negative image. What they did was double our sales targets to almost impossible levels. They also cut the number of tellers. Our job role changed to 'cover' tellers when needed. This itself would make it impossible to hit our targets as we were doing a different job half the time. This would give management a excuse to say employees are not performing and 'push' them out the door.

I left in December as I had a different career path planned before any of this happened. I spoke with my manager a few weeks after I left and he mentioned a lot of people would be leaving in January because of these new 'sales targets'.
Being from the UK I could see untapped markets and huge areas of growth for the bank. This would have created long term growth and create other areas of growth (real estate, mortgage brokers, car dealerships etc). But senior management refused to see the bigger picture on a tried a tested idea.

I now work for a supermarket chain at their head office. I have not noticed any job cuts. Im assuming when times are good or bad, people are still going to buy milk, bread, eggs and toilet paper.

Taking this discussion sideways if I may. Looking back I came across a lot of clients at the bank who worked in oil and gas I would describe as on the 'edge'. They made a lot of money (that being said, every customer that sat down in front of me made more money then me. Even the cook across at Jamesons made more than me..fml). The money people made was almost eye watering to me. Clients had nothing to show for it. They would spend their money on expensive toys, holidays and whoo bar lifestyle. They would sit in front of me and lie, but I had my screen faced towards me and I could see their credit card statements.

Then there were the ones I saved. A lot of the time I would speak 'off the record' and try to help my clients rather then sell them a product. I managed to 'save' a few. I helped clients by creating realistic budgets, emergency funds, getting them to buy a old Honda civic instead of buying a new 4x4 at dealerships. I got them buying a home a year later.
I had one client in particular who had gone over 'the edge', he was almost broke, and on the verge of collections coming after him. I figuratively stuck my arm out and pulled him back from the fall. I told him to shut the fk up and pay his credit card in full and give me 45% of his income. He looked at me he bit his tongue hard. A year later he has enough for a downpayment for a condo, debit free and savings for a rainy day. He comes to see me at the branch every time he passes and he hugged me when I left.

Then there were the ones I could not help. The ones that refused to listen. I had so many customers who worked in oil and gas with big salaries, maxed out credit cards, lines of credit, new car payments etc. But nothing really to show for the amount of money they made. I attempted to explain emergency funds, and saving for short term and long term. I calculated right in front of them should something happen in the market or if they lose their jobs. They would be in a REAL dire situation with rent, car payments, cell phone bill, insurance, gas money and food. They would not listen and would walk out.

The reason I write the above is that with all this discussion of people losing their jobs. It makes me look back and think of the large number of my clients who were on 'edge'. Some had children. It makes me wonder how they are financially and the bigger impact it has if they have lost their jobs.

[N'Syncro]

Re: $50 Oil / Economic Slow Down - Experiences?

I don't think the debt situation in Canada (164% of whatever it is) is exaggerated at all. I for one was in a bunch of debt right out of University, but I moved to Ft Mac, hunkered down, and paid it all off through hard work and a couple of years of major payments towards all my debt. I'm now 100% debt free and will continue that way (other than buying a house again eventually and hopefully assuming I can find a job again within a few months).

I see so much debt everywhere though. I have a couple of family members that live way beyond their means. Their theory is "live for today, b/c you might not be around tomorrow to spend that money", which I get, but they're way passed that. Massive doubt from cars, toys, trips, and just over spending on things like the best of the best for their kids ($700 hockey skates every year for a 10yr old). If any of them lost their job they'd immediately be in trouble (or once the possible severance package ran out). Which I think is the case for many people out there, which maybe explains why there's been so many layoffs in 2015 but yet things like house prices in Calg and Edm have barely dropped?

With 2 decent salaries and very very few expenses, my fiancee and I get by. Not much savings lately b/c I haven't received any bonuses for the past couple years, but then again we also travel alot and have done back to back to back multi week trips to Europe over the past few years. That's all paid for with cash though, as is our upcoming Sept wedding. I could not imagine if I had to pay for that financed big screen TV, and $700/month for a new car, and however much on credit card payments every month. I don't know how people do it because from my best guess we earn probably above the average.

*Well, there goes my "coffee" break...Back to online job posting I go What a drag. I hate applying for jobs