Monthly Archives: September 2017

Subcontracting to owner operators can fill energy’s transport driver shortages

An Answer to Hiring Shortages in Oil & Gas

Zane Carlson,  Partner at Stride Capital

After the downturn in the energy sector, many energy firms have found it difficult to win-back the employees they lost. It’s no secret that hiring anyone from experienced rig crews to transport operators and drivers in the energy sector has become a significant challenge. As David Yager has commented in a piece called The people problem in oilfield services has shifted from firing to hiring, “activity and oil prices haven’t stabilized, uncertainty lingers, alternative energy continues to make headlines and those affected by the downturn persist in their search for secure, stable employment.”

Many oil & gas employers have turned to recruiting strategies, focused on attracting new school grads with education and training, while others look to foreign workers to fill the positions. But is this short-term approach only addressing the symptom and not solving the problem?
 

Owner Operators: Solving the Transport Driver Shortage

The drivers who were laid off in previous years have the knowledge, experience and drive to return to a profitable sector. Why not return as an owner operator? With the opportunity to build equity and be nimble through diversification? Many simply do not own the equipment. Yet all it takes is adequate industry experience, a qualified work program and the right lending partner.
 
The owner operator or subcontractor model is a win for the energy companies, too. The potential to save millions in training, on-boarding, and benefits associated with traditional employment is real. This model is not new to the energy sector and making the shift from being a full-time employee to an owner operator is not as challenging as one might think.
 
Based on common-sense lending that goes beyond financial statements and as a direct lending partner, we’ve helped previous drivers become operating owners who thrive in oil & gas, as well as construction, agriculture, and forestry. It’s time to grow! Contact Zane today to see how we can help move your business forward.